DAVY VIEW

DraftKings has delivered a positive Q3 with 57% growth in revenue, improvements in its structural hold, a reduction in year on year (yoy) EBITDA losses and an improvement in both its full year revenue guidance ($3.5bn to $3.695bn) and EBITDA loss guidance (-$205m to -$105m). It has also introduced guidance for FY24 revenues that imply c.26% yoy growth and has guided to an aEBITDA range of $350-450m. This marks another strong quarter and given that it includes another upgrade to its guidance for the year and confidence in generating significantly positive aEBITDA in FY24, the update should be well received.