Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Let's dive in to
Speaker 1: one that is showing stronger user growth down one point
Speaker 1: six percent.
Speaker 2: I'm talking about DraftKings.
Speaker 1: We're looking at Jason Robbins, the CEO now, who managed
Speaker 1: to deliver what was record second quarter performance.
Speaker 2: Your revenue up thirty seven percent year.
Speaker 1: On year, and you're talking about delivering revenue closer to
Speaker 1: the high end of twenty twenty five for the full year.
Speaker 1: So what's the investor digestion going on?
Speaker 2: Do you think? Well?
Speaker 3: I think right now, we have a ton of momentum
Speaker 3: in the business. We also had some good luck on
Speaker 3: the sport outcome side in Q two, so that was nice,
Speaker 3: and we're geared up for what is the most important
Speaker 3: time of year coming up with NFL and then obviously
Speaker 3: college sports, NBA World Series, NHL just a big, big
Speaker 3: time a year. It's when we make our most revenue
Speaker 3: and acquire most customers and make our most adjusted ebitas.
Speaker 3: So really excited for that. I think we have some
Speaker 3: great plans in place, and you know, really expecting strong
Speaker 3: growth in the back part of the year.
Speaker 1: I mean, your shares are up twenty percent year to date,
Speaker 1: so it might be why we come off a little
Speaker 1: bit from our highs overall, But what about the core
Speaker 1: value drivers here? Like we're talking about, you know, the
Speaker 1: sports book friendly outcomes.
Speaker 2: You talk about how the calendar.
Speaker 1: Is looking good for you, But where else do you
Speaker 1: focus on investing because you'r CFO in particular, Alan talking
Speaker 1: about some growth initiatives and everyone's wondering about these prediction
Speaker 1: markets that might or might not come to bear.
Speaker 3: Well, even if you adjust for the outcomes, we were
Speaker 3: still up twenty five percent revenue wise year over year,
Speaker 3: so really healthy growth. And I think we're seeing, you know,
Speaker 3: just very strong demand in our underlying customer cohorts. And
Speaker 3: I also think the advancements we've made on the product
Speaker 3: side have been huge. We've really built out our parlay offering.
Speaker 3: Now we have the best in class and leading offering
Speaker 3: when it comes to in game betting. That's become the
Speaker 3: real growth driver of the industry right now, by far
Speaker 3: more growth happening and live betting than anywhere else. So
Speaker 3: I think really we positioned ourselves well from a product
Speaker 3: and customer experience perspective. Our marketing has been very effective.
Speaker 3: I also think on the internal side, we've gained a
Speaker 3: ton of efficiency through use of AI, which means we're
Speaker 3: getting more done for the customer and also saving money.
Speaker 1: Okay, like, what how you managing to interject generative AI
Speaker 1: across the board?
Speaker 3: I mean, the simple thing that we've been able to
Speaker 3: do is get everyone in the company to realize that
Speaker 3: they can drive value and it doesn't have to be
Speaker 3: the engineering team doing everything. So much of tooling right
Speaker 3: now through AI can be used by non engineers and
Speaker 3: everyone throughout the company knows that there's tons of manual
Speaker 3: workflows that can be automated through AI, and we've been
Speaker 3: on a tear doing that. We've also been working on
Speaker 3: select projects that are customer facing too, things like optimizing
Speaker 3: our trading engine because a human can't possibly take in
Speaker 3: all of the data and all the things happening at
Speaker 3: the same time when a live game is going on,
Speaker 3: So having AI agents support that and help make lower
Speaker 3: level decisions, I think is also a huge unlocked that
Speaker 3: we're pursuing. So I think the best is yet to
Speaker 3: come as far as AI, and we've got a ton
Speaker 3: of organizational momentum around it.
Speaker 1: And when you talk about the adoption by your own employees,
Speaker 1: thinking about how they can drive efficiency is efficiency what's
Speaker 1: necessary at the moment when you do have a few
Speaker 1: well known headwinds coming up in terms of just costs,
Speaker 1: I mean the tax implications that you're getting Illinois, or
Speaker 1: what's happening over in New Jersey for example. I'm also
Speaker 1: thinking about well, Missouri, you're like expanding, but that takes
Speaker 1: a cost upfront.
Speaker 3: Now, you're absolutely right. I think that being able to
Speaker 3: self fund some of these things through efficiency gains with
Speaker 3: AI has been a big driver of our focus. Also,
Speaker 3: I think there's other parts of the cost structure that
Speaker 3: we found that we have value that can be achieved too.
Speaker 3: So really, you know, it's always a balance for us.
Speaker 3: We're obviously very much in growth mode now we had
Speaker 3: thirty seven percent year over year revenue growth, but we
Speaker 3: also are constantly looking at how we can be more efficient,
Speaker 3: and we view the two is very linked. Oftentimes, where
Speaker 3: you do things that are more efficient, it freeze up
Speaker 3: better time to be spent on, you know, better things
Speaker 3: for the customer as well.
Speaker 1: So I go back to the expansion potentially into prediction markets.
Speaker 1: I mean, I know it's about federal regulation in many ways, Jason,
Speaker 1: but what gets you there.
Speaker 2: What gets you tipping your toe into it?
Speaker 3: Oh, I don't know that we are going to We're
Speaker 3: still evaluating our options. Obviously it's brand new, and you
Speaker 3: know we're watching it unfold right before our eyes, and
Speaker 3: we're learning a lot as we get educated on the space.
Speaker 3: So right now that's been our focus and you know,
Speaker 3: we'll see what happens from there.
Speaker 1: You have but one cell rating morning Star. What would
Speaker 1: you say to analyst over a morning style that convinces
Speaker 1: them to say, look, at the moment, our price point
Speaker 1: is where its should be.
Speaker 2: Actually, I'm looking up the wrong one.
Speaker 1: Let me go to my proper DraftKings analyst recommendations.
Speaker 2: Sorry, live interaction with the terminal.
Speaker 1: Right now, I have analyst recommendations a zero of cell ratings,
Speaker 1: but you have five buys what holds? What gets your
Speaker 1: five holds to a by rating?
Speaker 3: Jason, I think just continuing to prove ourselves performing over
Speaker 3: time is what gives people confidence in a company. And
Speaker 3: we've been public five years now, so we have a
Speaker 3: bit of a track record, but we're still a relatively
Speaker 3: new public company and I've only been profitable for the
Speaker 3: last year or so, so I think really showing that
Speaker 3: we can now grow our bottom line while continuing to
Speaker 3: post impressive top line numbers. That's our focus and I
Speaker 3: think that'll get more people on board.
Speaker 1: Thirty two buys fives holds zero cells. Jason Robins Draftking CEO,
Speaker 1: we thank you very much.
Speaker 2: Indeed,