FanDuel projects profitability in U.S. market in 2023

Fanduel President and Interim CEO Amy Howe joined Yahoo Finance after Fanduel's parenty company, Flutter Entertainment, beat street estimates in its 1H earnings report.

Video transcript

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- All right. Earnings like this can make your heart flutter. And yes I'm trying to make a pun, I'll keep my day job and not going into humor because Flutter is the parent company of FanDuel Let's bring in the President and Interim CEO Amy Howe, because you had a very good quarter Flutter did. Thanks in part because of FanDuel.

I mean revenue up to $902.8 million and they're predicting profitability by 2023. You're gonna get there and I would imagine with expansion in the other states. So what is investors if we're looking at Flutter or if we're just watching the gaming segment? What is investor should we pay attention as to the next moves for FanDuel?

AMY HOWE: Yeah, great to be here Adam. Listen, that past starts with the phenomenal momentum and scale advantage that we have as you said in the first half of the year alone, we reached almost a billion in revenue. This quarter we exceeded $500 million in one quarter alone, which is the first time we hit that milestone.

So just phenomenal momentum in scale that we continue to build on. I think what's most promising is it's not just a great acquisition right we acquired over 2 million users a day between sportsbook and Casino. But those users are engaged, right? The first half of the year we had 100 half million users engaged on our platform.

And I think that really speaks to the testament of the great product we built, we were the first to have same game parlay in market. And we've got a real advantage with our brand. So that momentum continues. The real question on profitability is just gonna be a question of how quickly new states come online as we sit here right now.

Over the next 18 months, we project that there'll be another nine states, eight of those will be sportsbook only which really plays to our advantage as we sit here with a 45% share and America's number one sportsbook. So a lot of great momentum coming off of each one but a lot of hard work ahead of us as we head into the back half of the year.

- And you certainly do have a lot of momentum your coming out of the first half of the year. You're entering a critical couple of months with the NFL season just a few weeks away. What are you expecting to see there?

AMY HOWE: We sure are. Listen, we're really excited about the NFL it's always our biggest acquisition sport and we've always had a phenomenal product. Two years ago, we launched same game parlay with the NFL. What's different this year is that this is the first year with our official sponsorship in partnership with the NFL. And so what that means is we're going to have opportunities to really engage that, that sports consumer in a way that we haven't in the past, right?

Will have integrations of highlights into our app, the ability to incorporate live betting odds into the direct stream. And in lots of great free to play options for consumers nationwide. So listen, whether you're watching that game at home in the comfort of your own living room or you're gonna be in the stadium touch wood we can get lots of consumers back into the venue safely. It's really gonna be a terrific experience. And so we're excited about that partnership.

- Love that expression touch wood. I'm curious though what about getting the consumers of sports, not necessarily into the stadiums but perhaps stream the actual event on your platform so that they can have one stop shopping to engage in the gaming while they're watching the game in real time. Is that gonna be announced, is that coming down the pike?

AMY HOWE: Yeah. I mean listen that's, that's something that we were early to market on a couple of years ago. We were actually one of the first to integrate sports betting into the live streaming experience, we actually did that with the Australian Open back in 2019. So we absolutely see that as the wave of the future and our partnership with the NFL will allow us to step into that. So we're excited about those opportunities and it just makes for a much more seamless experience for the consumer.

- I look forward to watching the Cleveland Browns one day on your platform. Thank you so much for joining us. Want to thank again Amy Howe, FanDuel president and interim CEO. All the best to your team going for.