Already one of the dominant entities in sports betting, DraftKings has achieved a major milestone by finally posting a full-year adjusted profit.
After 13 years of existence, nearly five years as a public company, and billions of dollars spent in marketing and user-acquisition costs, the Boston-based company said it generated $181.3 million in adjusted earnings for calendar year 2024. The figure reversed a $151 million loss in 2023 and was DraftKings’ first such positive cash flow figure in its history.
“I am more confident than ever in our growth trajectory and ability to capitalize on the substantial opportunity in front of us,” DraftKings cofounder and CEO Jason Robins said Friday in an earnings call with analysts. “Our revenue growth remains strong while our expenses approach scale as we continue to exert discipline and leverage new technologies.”
The company also reported a 13% spike in fourth-quarter revenue to nearly $1.4 billion and a 30% bump for the full year to $4.8 billion.
The financial results also arrive as DraftKings had been battling lower expectations due to bettor-friendly NFL outcomes during the 2024 season, as well as a recent lawsuit alleging the company preys on gambling addicts. The company, however, has continued to solidify its position as one of the two titans of the U.S. sports betting business along with top rival FanDuel.
“It’s still FanDuel and DraftKings by a mile,” gaming industry consultant Dustin Gouker recently told Front Office Sports of the U.S. sports betting market.
Super Bowl LIX on Feb. 9, while not part of DraftKings’ fourth-quarter and full-year 2024 results, did post a sportsbook handle of $436 million, a company record for single-day activity, and will be reflected in the next earnings report.
Stock Escalation
Investors were clearly enthused, sending DraftKings shares up by 15% in Friday trading to $53.49 each. The stock has increased by 47% since the start of the year and is returning to levels not seen since 2021.
Truist Securities said the company’s results were “better than we had feared given well-known unfavorable NFL [results], with strength in nearly all underlying aspects of the business. 2025 is off to a super start.”
Flutter Entertainment, the parent company of top sports betting rival FanDuel, also is profitable on an operating basis, posting a $450 million adjusted gain in its fiscal third quarter.
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