DraftKings (NASDAQ:DKNG) shares surged nearly 7% after-hours following the company’s reported Q3 results, with EPS of ($0.61) coming in better than the consensus estimate of ($0.69).
Revenue grew 57% year-over-year to $790 million, beating the consensus estimate of $699.14M, driven primarily by continued healthy customer engagement, efficient acquisition of new customers, the expansion of the company’s Sportsbook product offering into new jurisdictions, product innovation leading to increased parlay mix and thus higher hold percentage, and improved promotional reinvestment for Sportsbook and iGaming.
Monthly Unique Payers (MUPs) increased 40% year-over-year to 2.3 million average monthly unique paying customers in Q3. Average Revenue per MUP (ARPMUP) was $114, representing a 14% year-over-year increase.
DraftKings raised its fiscal year 2023 revenue guidance to $3.67-$3.72 billion (vs. prior $3.46-$3.54B), better than the consensus of $3.53B.
Furthermore, the company introduced a fiscal year 2024 revenue guidance range of $4.50-$4.80B, compared to the consensus estimate of $4.29B.