DraftKings Sees Robust Growth and Customer Gains in Q2: Key Insights from the Earnings Call

• DraftKings Inc. (NASDAQ:DKNG) receives a "Buy" rating from Needham, with the stock showing resilience in trading.
• The company reports a 20% increase in revenue year-over-year but misses the Street consensus estimate and EPS expectations.
• Despite downward adjustments in full-year revenue and adjusted EBITDA guidance, DraftKings shares experienced a 4.4% increase.

DraftKings Inc. (NASDAQ:DKNG) is a prominent player in the digital sports entertainment and gaming industry. The company offers a range of products, including daily fantasy sports, sports betting, and online casino games. DraftKings competes with other major companies like FanDuel and BetMGM in the rapidly growing online sports betting market.

On May 12, 2025, Needham updated its rating for DraftKings to "Buy," maintaining its previous grade. At the time, the stock was priced at $37.93. Despite the "hold" action associated with this update, the stock has shown resilience, trading between $37.40 and $38.85 today, with a 4.69% increase from the previous day.

DraftKings reported its first-quarter financial results, revealing a revenue of $1.41 billion, a 20% increase year-over-year. However, this figure fell short of the Street consensus estimate of $1.44 billion. The company's earnings per share were 12 cents, missing the expected 22 cents per share. Despite these results, CEO Jason Robins emphasized strong performance in core value areas.

In response to the financial results, DraftKings adjusted its full-year revenue guidance to a range of $6.2 billion to $6.4 billion, down from the previous $6.3 billion to $6.6 billion. The company also revised its full-year adjusted EBITDA guidance to a range of $800 million to $900 million, from the earlier $900 million to $1 billion.

Despite the downward adjustments in forecasts, DraftKings shares experienced a 4.4% increase, trading at $37.83 on Monday. The stock has a market capitalization of approximately $18.96 billion, with a trading volume of 14,614,653 shares on the NASDAQ exchange. Over the past year, the stock has reached a high of $53.61 and a low of $28.69.

• DraftKings Inc. (NASDAQ:DKNG) receives a "Buy" rating from Needham, with the stock showing resilience in trading.
• The company reports a 20% increase in revenue year-over-year but misses the Street consensus estimate and EPS expectations.
• Despite downward adjustments in full-year revenue and adjusted EBITDA guidance, DraftKings shares experienced a 4.4% increase.

DraftKings Inc. (NASDAQ:DKNG) is a prominent player in the digital sports entertainment and gaming industry. The company offers a range of products, including daily fantasy sports, sports betting, and online casino games. DraftKings competes with other major companies like FanDuel and BetMGM in the rapidly growing online sports betting market.

On May 12, 2025, Needham updated its rating for DraftKings to "Buy," maintaining its previous grade. At the time, the stock was priced at $37.93. Despite the "hold" action associated with this update, the stock has shown resilience, trading between $37.40 and $38.85 today, with a 4.69% increase from the previous day.

DraftKings reported its first-quarter financial results, revealing a revenue of $1.41 billion, a 20% increase year-over-year. However, this figure fell short of the Street consensus estimate of $1.44 billion. The company's earnings per share were 12 cents, missing the expected 22 cents per share. Despite these results, CEO Jason Robins emphasized strong performance in core value areas.

In response to the financial results, DraftKings adjusted its full-year revenue guidance to a range of $6.2 billion to $6.4 billion, down from the previous $6.3 billion to $6.6 billion. The company also revised its full-year adjusted EBITDA guidance to a range of $800 million to $900 million, from the earlier $900 million to $1 billion.

Despite the downward adjustments in forecasts, DraftKings shares experienced a 4.4% increase, trading at $37.83 on Monday. The stock has a market capitalization of approximately $18.96 billion, with a trading volume of 14,614,653 shares on the NASDAQ exchange. Over the past year, the stock has reached a high of $53.61 and a low of $28.69.

Needham reaffirmed its Buy rating on DraftKings (NASDAQ:DKNG) with a $65 price target, despite trimming near-term estimates due to March Madness-related betting outcomes.

The firm cut its Q1 adjusted EBITDA forecast by $70 million, noting that unfavorable game results during the NCAA tournament more than offset the positive boost seen from the Super Bowl. As a result, the new projection now falls below the company’s current full-year EBITDA guidance. However, Needham expects momentum to return in Q2, helped in part by early surprises such as Duke’s exit from the tournament.

Despite the short-term volatility, Needham emphasized that sports outcomes are inherently unpredictable, and therefore these fluctuations shouldn't impact the longer-term view. The firm noted that recent investor conversations have centered on bearish themes including slowing handle growth, potential recession, increased state tax burdens, competition from prediction markets, and structural hold questions.

Yet, Needham believes these concerns are either overstated or manageable over time. With shares under pressure recently, the firm views the pullback as a buying opportunity for investors focused on the long term, especially as DraftKings continues to scale and build competitive advantages in the growing online sports betting and iGaming markets.

Needham reaffirmed its Buy rating on DraftKings (NASDAQ:DKNG) with a $65 price target, despite trimming near-term estimates due to March Madness-related betting outcomes.

The firm cut its Q1 adjusted EBITDA forecast by $70 million, noting that unfavorable game results during the NCAA tournament more than offset the positive boost seen from the Super Bowl. As a result, the new projection now falls below the company’s current full-year EBITDA guidance. However, Needham expects momentum to return in Q2, helped in part by early surprises such as Duke’s exit from the tournament.

Despite the short-term volatility, Needham emphasized that sports outcomes are inherently unpredictable, and therefore these fluctuations shouldn't impact the longer-term view. The firm noted that recent investor conversations have centered on bearish themes including slowing handle growth, potential recession, increased state tax burdens, competition from prediction markets, and structural hold questions.

Yet, Needham believes these concerns are either overstated or manageable over time. With shares under pressure recently, the firm views the pullback as a buying opportunity for investors focused on the long term, especially as DraftKings continues to scale and build competitive advantages in the growing online sports betting and iGaming markets.

DraftKings Inc (NASDAQ:DKNG) is a prominent player in the US online sports betting and gaming industry. Known for its strong brand recognition and innovative technology, DraftKings has carved out a significant market share. The company competes with other major players like FanDuel and BetMGM, leveraging its first-mover advantage to stay ahead.

On February 18, 2025, Needham set a price target of $65 for DraftKings, suggesting a potential upside of 27.58% from its current trading price of $50.95. This optimistic outlook aligns with the positive sentiment from analysts following DraftKings' strong fourth-quarter results and 2025 guidance. The stock's current price is $50.93, reflecting a slight decrease of 4.79% with a change of $2.56.

Macquarie analyst Chad Beynon has maintained an Outperform rating on DraftKings, raising the price target from $50 to $60. Beynon highlighted DraftKings' achievement of a full year of positive adjusted EBITDA and free cash flow, marking significant financial milestones. This performance underscores the company's strong financial health and growth potential.

DraftKings reported a 37% year-over-year growth in monthly unique payers during the fourth quarter, indicating robust customer acquisition and engagement. Beynon noted that the combination of double-digit industry growth, higher hold, and lower promotional activities should further bolster DraftKings' performance. The company's market capitalization is approximately $24.83 billion, with a trading volume of 12.86 million shares on the NASDAQ exchange.

Needham analyst Bernie McTernan reiterated a Buy rating, increasing the price target from $60 to $65. This reflects confidence in DraftKings' future prospects, driven by reduced promotional activities and continued operating leverage. The stock has fluctuated between a low of $50.30 and a high of $53.50 today, with a 52-week high of $53.61 and a low of $28.69.

• Needham maintains a "Buy" rating for DraftKings Inc. (NASDAQ: DKNG) and increases the price target from $60 to $65.
• DraftKings announces the launch of a $500 million senior secured term loan B credit facility to support growth and operational strategies.
• The company's market capitalization stands at approximately $25.26 billion, with a trading volume of 4,626,850 shares, indicating its volatility and potential for growth.

DraftKings Inc. (NASDAQ: DKNG) is a prominent player in the digital sports entertainment and gaming industry. Founded in 2012 and headquartered in Boston, the company was established by Jason Robins, Matt Kalish, and Paul Liberman. DraftKings is unique as the only U.S.-based vertically integrated sports betting operator, offering a range of real-money games and betting options to enhance sports fans' experiences.

On February 18, 2025, Needham maintained its "Buy" rating for DraftKings and increased the price target from $60 to $65. At that time, the stock was trading at $51.87. Currently, DKNG is trading at $51.81, reflecting a slight decrease of approximately 3.15% or $1.69. The stock's price today has fluctuated between $51.70 and $53.49.

DraftKings recently announced the launch of syndication for a proposed senior secured term loan B credit facility, amounting to $500 million. The completion of this Term Loan B is contingent upon market and other conditions. The company plans to use the net proceeds from this loan for general corporate purposes, which could support its growth and operational strategies.

The company's market capitalization is approximately $25.26 billion, with a trading volume of 4,626,850 shares. Over the past year, DraftKings has experienced a high of $53.61 and a low of $28.69. This range indicates the stock's volatility and potential for growth, aligning with Needham's optimistic price target increase.

DraftKings Inc (NASDAQ:DKNG) is a prominent player in the US online sports betting and gaming industry. Known for its strong brand recognition and innovative technology, DraftKings has carved out a significant market share. The company competes with other major players like FanDuel and BetMGM, leveraging its first-mover advantage to stay ahead.

On February 18, 2025, Needham set a price target of $65 for DraftKings, suggesting a potential upside of 27.58% from its current trading price of $50.95. This optimistic outlook aligns with the positive sentiment from analysts following DraftKings' strong fourth-quarter results and 2025 guidance. The stock's current price is $50.93, reflecting a slight decrease of 4.79% with a change of $2.56.

Macquarie analyst Chad Beynon has maintained an Outperform rating on DraftKings, raising the price target from $50 to $60. Beynon highlighted DraftKings' achievement of a full year of positive adjusted EBITDA and free cash flow, marking significant financial milestones. This performance underscores the company's strong financial health and growth potential.

DraftKings reported a 37% year-over-year growth in monthly unique payers during the fourth quarter, indicating robust customer acquisition and engagement. Beynon noted that the combination of double-digit industry growth, higher hold, and lower promotional activities should further bolster DraftKings' performance. The company's market capitalization is approximately $24.83 billion, with a trading volume of 12.86 million shares on the NASDAQ exchange.

Needham analyst Bernie McTernan reiterated a Buy rating, increasing the price target from $60 to $65. This reflects confidence in DraftKings' future prospects, driven by reduced promotional activities and continued operating leverage. The stock has fluctuated between a low of $50.30 and a high of $53.50 today, with a 52-week high of $53.61 and a low of $28.69.