DAVY VIEW

DraftKings reported Q423 earnings after the US close last night. Revenue came in at $3.665bn for FY23, up 64% year-on-year (yoy) and a little behind the guidance midpoint ($3.695bn), with the miss explained by sporting results in late November (as had been previously flagged). The aEBITDA loss of -$151m was behind consensus of -$130m, but management noted that sporting results were a $126m headwind in Q4. For FY24, it has raised the revenue guide midpoint to $4.775bn from $4.65bn and the midpoint of aEBITDA to $460m from $400m. It also announced the acquisition of Jackpocket for $750m, 55% in cash and 45% in stock.