The following is a summary of the DraftKings Inc. (DKNG) Q1 2023 Earnings Call Transcript:

Financial Performance:

• DraftKings reported Q1 revenue of $1,175 million, indicating a 53% year-over-year growth.

• The company expects to generate around $400 million in free cash flow for FY 2024.

• For FY 2024, the revised revenue guidance is $4.8 to $5 billion, implying a year-over-year growth of 34%, and the adjusted EBITDA guidance sits at $460 to $540 million.

• In Q1, DraftKings managed to generate an adjusted EBITDA of $22 million, representing a 60% flow-through percentage.

Business Progress:

• DraftKings launched its sportsbook in Vermont and North Carolina, expecting these states to make a positive contribution to its adjusted EBITDA.

• The company is focusing on customer retention and innovation in sports and gaming to ensure a better customer experience.

• Their in-house technology and products are being developed even further, and using AI for problem gaming detection is also being explored.

• The company saw a decrease in customer acquisition costs, with an emphasis on increasing marketing efficiency and promotional spending.

• Advancements like the integration of Jackpocket and the introduction of new fantasy products, like Pick6, are expected to drive the business.

• The CEO emphasized the need to bring their payment costs in line with long-term goals and measures are being considered, including encouraging the use of low-cost payment methods and bringing some technology in-house.

More details: DraftKings IR

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