This was mainly due to improved structural sportsbook hold, successful launches of its sportsbook and iGaming products in new jurisdictions, and continuing client retention and monetisation in existing states. Revenue and adjusted EBITDA both exceeded expectations too.
Furthermore, full-year revenue almost doubled to $2.2bn and losses from operations were reduced slightly to $1.51bn compared to $1.56bn in 2021.
But, with loss from operations also hitting $232.4m for Q4, the question with DraftKings – as always – is: are losses falling quickly enough to satisfy investors?
Jason Robins, DraftKings CEO and Co-Founder said: "I am very pleased with how we concluded 2022, with continued top-line growth and a strong focus on expense management.
“In the fourth quarter, we grew revenue by 81% versus last year and delivered positive adjusted EBITDA in October and for the quarter when adjusting for our launch costs in Maryland and Ohio. Moving into 2023, we will continue to drive revenue growth and focus on expense management to accelerate our adjusted EBITDA growth.”
DraftKings is raising its valuation for the fiscal year 2023 from the range of $2.8bn to $3bn which was revealed on November 4, 2022, to a range of $2.85bn to $3.05bn.
According to the company's revised 2023 sales estimate, annual growth will range from 27% to 36%.
In contrast to its previous fiscal year's 2023 adjusted EBITDA target of between $475m and $575m, the company has now predicted it to be between $350m and $450m.