DraftKings Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenue of $1,095.5 million for the third quarter, marking a 38.7% increase from $790.0 million in the same period of 2023. For the nine months ended September 30, 2024, revenue reached $3,374.9 million, up 38.6% from $2,434.5 million year-over-year. This growth was primarily driven by a substantial increase in online gaming revenues, which rose by 41.1% to $1,084.2 million in Q3 2024.
Despite the revenue growth, DraftKings reported a net loss of $293.7 million for Q3 2024, slightly higher than the $283.1 million loss in Q3 2023. For the nine-month period, the net loss improved significantly to $372.4 million, down from $757.5 million in the prior year. The company’s loss from operations for Q3 2024 was $298.6 million, compared to $286.6 million in Q3 2023.
The company’s total current assets decreased to $1,643.9 million as of September 30, 2024, from $2,071.4 million at the end of 2023. However, total assets increased to $4,273.0 million, up from $3,944.9 million. Total liabilities also rose to $3,196.9 million, compared to $3,104.6 million at the end of 2023. Notably, DraftKings' total stockholders’ equity increased to $1,076.1 million from $840.3 million.
Strategically, DraftKings completed the acquisition of Jackpocket Inc. on May 22, 2024, for approximately $450.9 million in cash and $320.8 million in equity. This acquisition is expected to enhance DraftKings' offerings in the U.S. lottery vertical. Additionally, the company acquired Sports IQ Analytics Inc. to improve its pricing and trading capabilities.
DraftKings also faced increased operational costs, with general and administrative expenses rising by 59.2% to $208.1 million in Q3 2024, driven by costs associated with the discontinuation of the Reignmakers product and increased litigation expenses. The company has initiated a stock repurchase program of up to $1.0 billion, although no shares have been repurchased as of the reporting date.
Overall, DraftKings continues to expand its market presence, operating in 26 U.S. states with legalized online sports betting, while navigating challenges related to profitability and operational costs.
About DraftKings Inc.
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