DraftKings Inc. (NASDAQ: DKNG), which has a profit surprise for its fiscal fourth-quarter, is gaining ground this morning. Revenues grew 13% year-over-year.
Jason Robins, the chief executive of the company, sees further growth in the future, thanks to several tailwinds that will continue into 2025.
He raised his full-year revenue forecast this morning from $6.2 billion to at least $6.3 billion. His previous guidance was $6.2 billion.
DraftKings’ stock is up by more than 50% since August 2024.
DraftKings acquisitions will drive future growth
Jason Robins praised the company’s acquisitions strategy in an interview with CNBC after its earnings. He added that the acquired brands have already contributed to the top-line.
He expects that the acquisition of Sports IQ, Jackpocket and Mustard Systems by DraftKings last year will continue to increase customer acquisitions in 2025.
The sports betting giant expects its adjusted EBITDA this year to reach up to $1 billion.
The Street’s consensus rating of “buy” on DraftKings stock is reaffirmed by the upbeat forecast from DraftKings. Analysts are currently expecting DKNG to rise above $52 by the time of writing, which is a potential gain of about 15% from current levels.
DKNG will benefit as more states legalize sport betting
CEO Robins acknowledged that the company’s costs will increase this year, as some states implement their plans to increase taxes.
He’s not worried about it, however, as several states are expected pass legislation to legalize sport betting in 2025. This will likely be a major tailwind for DraftKings.
The chief executive believes there is pent-up demand for legislation this year, since “last year was difficult, it was an electoral year.” It’s usually difficult to pass legislation in an election year.
DraftKings has been a profitable investment over the past 12 months. It is still not attractive to income investors because it does pay a written dividend.
DraftKings focuses on Super Bowl and other big games
DraftKings made $436 million on the Super Bowl in this year’s game – “a huge increase year-on-year across virtually all metrics.”
Jason Robins, the chief executive of the company, spoke with CNBC on a Friday. He said that he was committed to building a similar momentum in other major games such as the NBA to drive growth further in 2025.
The Nasdaq listed company increased its monthly unique payors by an astounding 36%, to a total of 4.8 million.
On the downside, a decline of 16% in revenue per MUP, year-on-year, and the Jackpocket purchase resulted in a fiscal Q4 revenue average of $97.
DraftKings began “executing our inaugural share purchase authorization” in order to further increase shareholder value by 2024.
This post Top 3 tailwinds driving growth for DraftKings 2025 may be updated as new information becomes available
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