DraftKings, the Boston-based daily fantasy sports site that is in a battle with FanDuel for the hearts and minds of fantasy sports players, released its financials yesterday, and count me as impressed.
DraftKings revealed that in 2014, the company received $304 million in entry fees from users, compared to $45 million in entry fees for 2013. Additionally, the company reports $40 million in revenue in 2014 compared to $3 million the previous year.
Femi Wasserman, DraftKings’s vice president of communications, said that DraftKings is gaining a larger share of the market all the time. “DraftKings is a growing company in growing niche, which is a nice place to be,” she said.
The move to release their numbers is a bit odd for a privately held company, due to the fact that regulations only require public companies to disclose financials. DraftKings financial revelations come on the heels of FanDuel, another privately held fantasy sports company, releasing its own financial information. FanDuel’s numbers, for a company with a larger share of fantasy users than DraftKings, are about $622 million in entry fees paid for 2014 and more than $57 million in revenue last year.
Both companies saw all their financial numbers jump in the last quarter of the year, which is no surprise given that the period is the most active time for fantasy sports with baseball concluding, the NFL in full swing, and the kickoff of both the NBA and NHL.
One thing to note that reflects well on DraftKings is that it has not been in the fantasy game as long as FanDuel, which launched in 2009. DraftKings, which launched in 2012, is performing well and expanding its offerings beyond major sports including to golf, MMA, and soccer faster than its competitors in the $4 billion fantasy sports space.
“This is DraftKings 30th month of operations and it has $30 million in revenue,” said Atlas venture partner Ryan Moore, who led the firm’s investments in DraftKings.
For Moore, the financial reports from both companies are a sign of a larger growth trend for the fantasy sports industry. “The numbers don’t lie,” he said. “This is a much bigger market than anyone thought it would be, which is great news for both DraftKings and FanDuel.”
“But the way the DraftKings guys have flawlessly executed over the last two years,” Moore added, “we can’t wait for next two.”