"DraftKings (Nasdaq: DKNG) reported an 80% YoY increase in new OSB and iGaming users in Q2, while customer acquisition costs dropped over 40%."
"The company reiterated its full-year adjusted EBITDA target of $900 million to $1 billion despite absorbing tax increases and a promo-heavy Q1."
"Revenue expectations for Q2 stand at $1.43 billion, with EPS projected at $0.41, reflecting strong hold trends and improved customer efficiency."
"Starting Jan 2025, DKNG plans to implement a gaming tax surcharge in four states that have greater than 20% tax rates, which may impact margins."
DraftKings anticipates 84% YoY EPS growth along with revenue expectations of $1.43 billion in Q2. The adjusted EBITDA guidance remains unchanged at $900 million to $1 billion, despite challenges like increased taxes and promotional costs. A notable 80% YoY rise in new users and a 40% drop in customer acquisition costs indicate strong market potential. To address high state taxes, a surcharge will be implemented starting January 2025, which might affect overall margins.
Read at 24/7 Wall St.
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