DraftKings Braces for Impact of Tough November on Q4 Results

DraftKings Q4 Earnings May be Impacted by Rough November

A rough November for US sports bettors could potentially impact DraftKings’ fourth quarter results, according to Benchmark analyst Mike Hickey. Hickey suggests that favorable results for bettors in November may have decreased DraftKings’ hold percentage by 1.5%, potentially leading to a $50 million reduction in fourth quarter revenue and a $35 million decrease in adjusted EBITDA. While December data is not yet available, Hickey believes that the hold percentage likely normalized in December, indicating that November was an anomaly.

Despite the potential impact of November, DraftKings’ outlook for 2024 remains positive. The company is set to release its results for the October through December period on February 15th, with analysts and investors closely watching for any updates to top and bottom line forecasts. DraftKings anticipates a positive 2024 EBITDA of $350 to $450 million on sales of $4.5 to $4.8 billion.

Looking ahead to 2025, DraftKings expects revenue in the mid $5 billion range with adjusted EBITDA of $900 million, and projections for 2026 and 2027 show continued growth. However, following a 7.5% decline in the stock market this week, there may be increased pressure on DraftKings to meet upper guidance expectations.

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In conclusion, while November’s impact on DraftKings’ Q4 results remains to be seen, the company’s 2024 outlook appears promising, and bettors can explore options like BetOnline casino for their sports betting and online gaming needs.