DraftKings

Q3 beats, but FY23 EBITDA guide the focus

  • Sectors : Gaming
  • Companies : DraftKings

Ratings and price correct at time of issue.

  • DraftKings

    Closing Price: 1567c

  • RATING 23/03/21

  • PREVIOUS RATING N/A

DAVY VIEW

DraftKings’ Q3 headline performance was strong, with revenues higher and EBITDA losses lower than both our expectations and company guidance. This was mostly driven by an atypically strong hold during the period and marketing savings. However, company guidance for FY23 was the key focus, with the midpoint of its EBITDA loss range pointing to larger losses than either we or consensus expected (followed by breakeven in FY24). On the positive side, on the conference call management provided some reassuring profitability metrics on existing states. Overall, DraftKings continues to cement its place as a podium player in the highly attractive US market, albeit with a route to profitability that is slower than we had anticipated.

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Nov 4 2022, 15:55 GMT

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