Revenue increased 33.6% to $417.2 million in the quarter.

B2C online betting and gaming continued to account for the vast majority of DraftKings revenue, with revenue from this segment increasing 41.6% to $386.7 million.

Jason Park, Chief Financial Officer of DraftKings, added that revenues in this area would have been $25 million higher if not for the lower than normal holding percentages.

Other revenue, such as revenue from media operations and the operator’s “non-fungible token marketplace” (NFT), more than doubled to $17.0 million.

“DraftKings has seen significant growth in our key revenue and performance metrics,” said Jason Robins, co-founder, CEO and president of DraftKings. “We see no impact from inflationary pressures on customer demand, and we continue to improve the user experience by adding breadth and depth to our DFS, mobile sportsbook and igaming products.”

Almost all of DraftKings’ revenue, at $402.6 million, came from the United States, up 43.7%. The amount from other jurisdictions decreased by 54.5% to $14.6 million.

Revenue costs, however, rose faster than revenues, by 71.0% to $313.4 million. Sales and marketing expenses also grew rapidly, by 40.5% to $321.4 million. Product and technology costs increased 44.9% to $81.4 million, while general and administrative expenses increased 27.8% to $216.6 million.

As a result, DraftKings reported an operating loss of $515.6 million, up 58.7%. Much of this was due to high spending in states that had launched online sports betting more recently, such as New York which launched in January, as activity was positive in 10 states.

It then earned $12.7 million from the revaluation of its warrant liabilities, plus $37.9 million in other income.

As a result, DraftKings pretax loss was $464.9 million, up 32.5%. After tax losses from companies in which DraftKings has a majority stake, the company posted a net loss of $467.9 million.

Total adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the year ended in a loss of $289.5 million, of which $269.2 million came from B2C and $20.3 million from dollars from B2B. Although this was more than double the EBITDA loss in the first quarter of 2021, it was significantly better than the expected loss of $320-340 million.

As a result of these results, the company has again increased its revenue and adjusted EBITDA guidance for the full year. The company now expects its revenue to be between $1.925 billion and $2.025 billion and its EBITDA loss to be between $760 million and $840 million.

“We are pleased with the strong performance of our revenue and adjusted EBITDA in the first quarter, which was driven by healthy underlying customer behavior and our ability to realize efficiencies,” Park said. “As a result, we are increasing the midpoint of our fiscal 2022 revenue guidance by $50 million and improving the midpoint of our fiscal 2022 adjusted EBITDA guidance by $75 million.”

Subsequent to the end of the quarter, the company completed its acquisition of Golden Nugget Online Gaming (GNOG), which had closed nine months earlier. DraftKings will pay 0.365 of its own shares for each GNOG share.

“From our perspective, we just made a very significant acquisition with Golden Nugget Online Gaming,” Robins said. “That’s the model of what we’re looking for, something that’s strategically complementary, something with a great team and then a strong, healthy business.”

Robins also revealed that the company hopes to launch in the Canadian province of Ontario “in the near future”, after the market opened last month.

The company’s full-year projections do not include GNOG activity or new launches such as in Ontario.

Robins and Park also discussed the company’s promotional activity, as other operators such as Caesars have made efforts to cut marketing expenses. Robins said the company would reduce overall new user acquisition expenses, but would continue major promotional events around key times in the sports calendar.

“There are sort of two parts to this – one would be new user offerings and the second would be marquee events like the start of the NFL season and the NCAA basketball tournament,” Robins said. “I think we will always run promotions around these events. They are great for re-activating users and excellent for acquisition and the money spent on them tends to be reinvested in our products.

“We have always remained disciplined, we have never gone as far as some of our competitors have with new user offers, but there may be some reduction in promotional intensity compared to some of the offers previous.”