5 Insightful Analyst Questions From DraftKings's Q1 Earnings Call

DraftKings delivered first quarter results that the market viewed positively, despite missing Wall Street’s revenue expectations. Management attributed the 19.9% year-over-year sales growth to product enhancements that increased sportsbook hold percentage and efficient promotional spending. CEO Jason Robins highlighted the impact of increased parlay bets and improved customer engagement, noting that strong handle growth was supported by successful new customer acquisition and a shift toward higher-margin betting products. However, Robins acknowledged that “customer-friendly sport outcomes” in March, particularly during the NCAA basketball tournament, weighed on the company’s top line.

Is now the time to buy DKNG? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions DraftKings’s Q1 Earnings Call

• David Katz (Jefferies) asked about DraftKings’ approach to M&A and capital allocation. CEO Jason Robins explained that acquisitions are evaluated based on their ability to create shareholder value, citing recent deals that have improved live betting and reduced costs.
• Shaun Kelley (BofA) questioned trends in handle growth and the impact of sports seasonality. Robins said growth remained strong in Q1 and early Q2, attributing any short-term deceleration to typical seasonal factors.
• Stephen Grambling (Morgan Stanley) inquired about the decline in promotional intensity and its effect on handle growth. Robins responded that declining promotions are offset by higher hold rates and that both new and existing customers are shifting toward higher-margin products.
• Ben Miller (Goldman Sachs) asked for clarity on the acceleration of live betting and its impact on handle. Robins emphasized that live betting accounted for over half of total handle for the first time and is expected to be a continued driver.
• Clark Lampen (BTIG) sought details on the drivers behind increased parlay mix and AI usage in risk management. Robins said both new and existing users are adopting parlays, and that AI is being gradually integrated into pricing and risk frameworks, with significant potential for further impact.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will be watching (1) the pace of adoption and monetization for live betting and parlay products, (2) the impact of further promotional efficiency and digital ad market trends on margins, and (3) regulatory developments in key states, especially those affecting tax rates and new market entries. Product integration milestones and AI-driven operational improvements will also be key signposts for assessing execution.

DraftKings currently trades at $43.13, up from $35.40 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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