DAVY VIEW

As had been flagged by peers, the final quarter of the year saw customer-friendly results impact revenue and EBITDA. EBITDA in the quarter was down $62m year-on-year (yoy) to $89.5m, but came in a little ahead of recent VA consensus forecasts. FY24 marked a key transition year for DraftKings, with revenue increasing by 30% to $4.8bn and EBITDA improving by $332m from -$151m to $181m, its first full year of positive EBITDA. All eyes quickly move to guidance where it has slightly tweaked up the mid-point of its FY25 revenue guide to $6.45bn and retained its EBITDA guidance of $950m (mid-point). We will update our forecasts to reflect this.