But certainly would never do so at the expense of our focus in the U.S., which obviously we think is just the tremendous opportunity in front of us. And as I said, I think a lot of what’s benefited us is having that focus, and we don’t want to give that up easily.
Chad Beynon: Thanks. Appreciate it.
Operator: One moment for our next question. Our next question comes from John DeCree with CBRE. Your line is open.
John DeCree: Good morning, everyone. I’ll cover a lot of ground. Maybe just one question on — maybe some insights in the consumer behavior from where you guys sit. I don’t know if you — could you talk a little bit about what you’re seeing as states mature versus new states that launch at the customer evolves in terms of average bet or average deposit size? Are those kind of metrics that you look at? And how have they been trending? I guess, with the notion that new states you’re penetrating quicker, the reaching contribution quicker? Are they just starting at a more sophisticated or more mature point than older vintages? So kind of a broad question, but curious if you can talk about any of those trends.
Jason Robins: Yes. It’s a really fascinating question, and there’s a lot of different data insight that can be gathered from looking at all the different states. It’s an interesting one. So — if I kind of — to more stay at a high level to answer your question, as you noted, the penetration rate has definitely increased penetration to the adult population in terms of how fast that’s happening. As a result, you might imagine, we’re acquiring a larger base of customers going deeper, therefore, also means that we’re not just acquiring some of the same types of customers we acquired very early in other markets. We’re also acquiring some of the customers that we acquired later in other markets. But overall, it’s still that initial cohort is incredibly valuable.
And we’ve really seen most of that show up in increased CAC efficiency just because such a large influx of new customers has really brought the CAC down for us in a lot of the new states in the early days. So that’s something we’re definitely seeing. And as far as the other dynamics go, there’s also improvements in things that we’ve made to the product and the way that we do CRM, they have affected things. So we’re seeing customers in new states come in generally with a higher starting parlay mix because it’s easier to kind of get people accustomed to coming in on some of these new products we’ve launched versus older states, getting people to retrain behaviors to try different products when they’re used to using the product in a certain way.
And I think that has the opposite effect. It increases the immediate monetization and things like that. So A lot of moving levers there. But overall, I think you’re kind of seeing those two high-level factors impact things. The product improvements and CRM improvements we made are increasing some of the metrics coming out of the gates. But you’re also just seeing so much faster ramp in the population penetration that we’re capturing, more casual customers with some of the more die hard customers in there in that early phase as well. Both of them are, I think, overall, resulting in a net very positive impact for us. We’re seeing great CACs relative to where we saw in the early days of launching new states, and the LTVs continue to be incredibly strong from those early cohorts.
John DeCree: Understood. Thanks, Jason. I appreciate the additional color.
Operator: Ladies and gentlemen, this concludes the Q&A portion of today’s conference. I’d like to turn the call back over to Jason Robins for any closing remarks.
Jason Robins: Thank you all for joining us on today’s call. Really excited about 2023, shaping up to be an excellent year for DraftKings. So proud of the team for our Q3 results and looking forward to close the year with bang. And really equally, if not more, excited about 2024 and beyond, lots of great things ahead on the product side and also very excited to be having a very meaningfully positive adjusted EBITDA year for the first time. So lots of good milestones ahead. We’re excited about the opportunity, and we look forward to sharing additional insights at our Investor Day on November 14. I hope everybody has a great rest of the next couple of weeks. We’ll see you again on November 14. Thanks.
Operator: Ladies and gentlemen, this does conclude today’s presentation. You may now disconnect and have a wonderful day.
