DraftKings Inc. - Ordinary Shares - Class A

Revenue Growth and Earnings Outlook: DraftKings reported Q1 2025 revenue of $1.409 billion, representing a 20% year-over-year growth. For fiscal year 2025, the company now expects revenue to range from $6.2 billion to $6.4 billion, revised down from previous guidance of $6.3 billion to $6.6 billion. Adjusted EBITDA is projected to range from $800 million to $900 million.

Impact of Customer-Friendly Sports Outcomes: Customer-friendly sports outcomes in March negatively impacted revenue and EBITDA by an estimated $170 million and $111 million respectively. The quarter witnessed all four number one seeds reaching the Final Four in the NCAA tournament, resulting in a historically high win rate for higher seeds.

Improvement in Core Value Drivers: The company indicated that its core value drivers are outperforming expectations, with structural sportsbook hold percentage at 10.4%, 50 basis points above last year. A notable increase in parlay handle mix by 370 basis points year-over-year contributes to this positive trend.