DraftKings Inc. (Nasdaq: DKNG) announced its fourth quarter and fiscal year 2022 financial results on February 16, 2023. The financial report showed that the company reported a revenue of $855 million for Q4 2022, an increase of 81% compared to $473 million during the same period in 2021. This was primarily driven by continued customer retention and monetization in existing states, the successful launches of its Sportsbook and iGaming products in additional jurisdictions, and structural sportsbook hold improvement. As a result, the DKNG stock ticker is up 14% higher than its market close price yesterday.

The company also posted a letter to shareholders and an earnings presentation on the Investor Relations section of its website, investors.draftkings.com. According to the letter, DraftKings is raising its fiscal year 2023 revenue guidance to a range of $2.85 billion to $3.05 billion from the range of $2.8 billion to $3.0 billion, which was previously announced on November 4, 2022. The company’s updated 2023 revenue guidance range equates to year-over-year growth of 27% to 36%. The company also significantly improved its fiscal year 2023 Adjusted EBITDA guidance, now expecting the fiscal year 2023 Adjusted EBITDA of between ($350) million and ($450) million compared to its prior fiscal year 2023 Adjusted EBITDA guidance of between ($475) million and ($575) million, which was previously announced on November 4, 2022.

The company’s mobile sports betting footprint has also expanded, with DraftKings now live with mobile sports betting in 20 states that collectively represent approximately 42% of the U.S. population following the launch of its online Sportsbook product in Maryland on November 23, 2022, and in Ohio on January 1, 2023. DraftKings is also live with iGaming in 5 states, representing approximately 11% of the U.S. population.

The fourth-quarter report also showed continued healthy growth in player retention, acquisition, and engagement, with monthly unique payers (MUPs) increasing to 2.6 million average monthly unique paying customers in the fourth quarter of 2022, representing an increase of 31% compared to the fourth quarter of 2021. The average revenue per MUP (ARPMUP) was $109 in the fourth quarter of 2022, representing a 42% increase compared to the same period in 2021. This increase was primarily due to an improvement in the company’s structural sportsbook hold rate and a continued mix shift into DraftKings’ Sportsbook and iGaming products.

According to Jason Robins, DraftKings’ Chief Executive Officer and Co-founder, “Moving into 2023, we will continue to drive revenue growth and focus on expense management to accelerate our Adjusted EBITDA growth. We have already taken several actions that resulted in an increase to our revenue guidance and significant improvement in our Adjusted EBITDA guidance.” The strong financial results, guidance, and expansion of mobile sports betting footprints led to the increase in the DKNG stock ticker.

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