Loss not as bad as feared

DraftKings clock at UFC venue.

Source: DraftKings

Sports-betting company DraftKings on Friday reported a better-than-feared loss per share and higher revenue for its first quarter and raised its full-year revenue guidance.

Shares gained 3.7% in Friday’s premarket.

Here are the key numbers:

  • Loss per share: 36 cents vs an expected loss of 42 cents in a Refinitiv survey of analysts
  • Revenue: $312 million vs $236.2 million expected in the Refinitiv survey

DraftKings said it had 1.5 million monthly unique paying customers as of its first quarter, holding onto the gains in made in its fourth quarter. It was expected to report 1.31 million, according to FactSet.

Average revenue per monthly unique paying customer came in at $61 in the first quarter, representing a 48% increase versus the same period in 2020. The company said it was boosted by increased engagement with its iGaming and mobile sports betting product offerings, as well as cross-selling.

The company also raised its fiscal year 2021 revenue guidance to a range of $1.05 billion to $1.15 billion from $900 million to $1 billion, which equates to year-over-year growth of 63% to 79%. DraftKings credited the expected return of normal sports seasons for the increase in guidance.

“The increase reflects solid performance in the first quarter of 2021, continued strong user activation due to the effectiveness of our marketing spend, well-executed launches of mobile sports betting and iGaming in Michigan and mobile sports betting in Virginia, and a modest contribution from our recently completed acquisitions,” the company said. “This guidance also assumes that all professional and college sports calendars that have been announced come to fruition and that we continue to operate in states in which we are live today.”

Friday’s report marks the company’s first full year as a publicly traded company since it went public last April via a SPAC. The company has been able to ride growing sports betting legalization across the United States, helping expand its market reach. DraftKings is live with online sports betting in 12 states.

Currently, 21 states and the District of Columbia allow online sports betting, up from 20 this past quarter. Six states legalized sports wagering but are not yet operational, and 13 states are working on legislation.

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