DraftKings rallied Friday after the sportsbook operator lifted its guidance late Thursday with its Q4 report. DKNG stock received a few price target hikes from analysts following its results.
DraftKings reported a loss of 28 cents per share, widening from a loss of 10 cents per share last year. Revenue increased 13% to $1.39 billion, driven by healthy customer engagement, new customer acquisitions, the expansion of its sportsbooks offerings and the impact of its Jackpocket acquisition from May 2024.
FactSet analysts expected a loss of 17 cents, while revenue matched views.
Monthly unique players (MUPs) jumped 36% to an average of 4.8 million customers in Q4. Excluding the Jackpocket. The average revenue per MUP declined 16% to $97, due to lower average revenues per Jackpocket customers and customer-friendly sports outcomes.
CFO Alan Ellingson noted that the company recorded its first year of positive adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in 2024.
DraftKings also lifted the midpoint of its 2025 revenue outlook, but noted the guidance does not reflect year-to-date sports outcomes, including the Super Bowl, as well as the mobile sports betting launch in Missouri from November.
A DraftKings spokesperson told the New York Post earlier in the month that more than 12 million bets were placed on the Super Bowl with DraftKings across more than 2.5 million active customers.
The betting firm expects full-year revenue to range from $6.3 billion to $6.6 billion, up from its previous guidance for $6.2 billion to $6.6 billion, representing about 35% growth from last year. DraftKings maintained its adjusted EBITDA outlook of $900 million to $1 billion.
Canaccord raised its price target on DKNG stock by 6 to 60 after results, noting the mixed Q4 report saw strong user acquisition and engagement offset by a slew of customer-friendly NFL outcomes during the quarter, The Fly reported. Still, the company managed to deliver its first full year of positive adjusted EBITDA and free cash flow. The firm kept a buy rating on the shares.
Susquehanna also lifted its price target on DraftKings to 61 from 54 and maintained a positive rating on the shares.
DraftKings Stock
DraftKings shares rallied 15.2% Friday to mark their fifth consecutive daily advance.
The stock is above a buy zone after topping a 45.87 entry on Thursday. DKNG stock has rallied more than 86% from its 2024 low of 28.69, set in early August.
DraftKings has jumped about 44% already in 2025.
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