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00:00And love is in the air in DraftKings.
00:02They made some big historic financial numbers
00:06during the big game, didn't they?
00:08Yeah, certainly, Craig.
00:09Thanks for having me.
00:10DraftKings just last night announced
00:12their quarter four earnings for 2024,
00:16as well as the full entire year outlook
00:18of kind of how they did
00:20and where they are gonna go going forward.
00:22But the big news here is that the stock market
00:25really loved what they heard.
00:26DraftKings right now is up to $53 a share
00:30on the stock exchange, which is its highest price
00:32it's been in three and a half years.
00:34So investors are really loving what they heard.
00:38Some of what they heard is that revenue
00:39was up 13% in the fourth quarter,
00:42which was ahead of Wall Street's expectations.
00:44And it was also the company's first ever full year
00:48of profit with $181 million in EBITDA,
00:52which was up from $151 million in losses last year.
00:56So for a long time,
00:58we've talked about these sports betting companies
00:59making these huge investments,
01:01asking Wall Street and their investors for more money.
01:04And you have your first year of one of the major ones
01:07really taking home a lot of profit,
01:10which is kind of interesting when you talk about
01:12what happened during the fourth quarter
01:14and this past season.
01:16NFL obviously is the most popular sport to bet on,
01:18but DraftKings as well as FanDuel and everybody else
01:22got just absolutely killed on NFL results.
01:26This was the first time in 40 years
01:29that favorites won 75% of their games in a week,
01:34at least 10 times.
01:35So that's 10 out of 17 weeks
01:37where the favorites just overwhelmingly won.
01:39And obviously the public loves to back favorites.
01:42So that's been kind of the,
01:44we talked about all NFL season
01:45was the public just keeps winning,
01:48but it's not a big concern for the stock market.
01:50They see that as what we call an industry headwind,
01:53just something that can happen.
01:55The fact that it's the first time it happened
01:57in about 40 years,
01:58people seem to be thinking that speaks less to the public
02:01necessarily getting better at sports betting
02:03and just kind of a random happenstance,
02:06crapshoot occurrence.
02:07So it's interesting that they posted such low hold
02:11and bad results in the NFL,
02:13but Wall Street still really loved what they heard.
02:16This was DraftKings best Superbowl ever,
02:18which is no surprise
02:19considering what we talked about on Wednesday
02:22with the public just getting absolutely killed
02:25on player props and same game parlays
02:27despite winning on the major markets.
02:29So that's another big sign for the industry
02:31and a good sign for DraftKings
02:32is people continue to bet more and more parlays.
02:34It hasn't stopped yet
02:35and it's really helped them mitigate
02:37some of those headwinds.
02:38So it's a really good outlook so far
02:41to start the year for DraftKings.
02:42And going forward,
02:43I'm sure they'll try to build on momentum
02:45with customer acquisition.
02:46They just bought the online lottery retailer JackPocket,
02:50which so far has produced good returns for them,
02:52though customers are spending at a little lower
02:55than they typically do on iGaming or sports betting
02:59because lottery tickets are cheaper.
03:00So they're gonna try to expand the business that way
03:03and hope for a more favorable NBA season
03:06and MLB season once that gets underway.