Sports betting company DraftKings Inc DKNG reported first quarter financial results after market close Thursday. Here are the key highlights.
What Happened: DraftKings reported first-quarter revenue of $770 million, which was up 84% year-over-year. The revenue total beat a Street estimate of $704.13 million according to data from Benzinga Pro.
The company reported a loss of 87 cents per share in the first quarter, which beat a Street consensus estimate of a loss of 88 cents per share.
The company said that the results were driven by new customers, product innovation and a higher hold percentage.
DraftKings has monthly unique payers of 2.8 million in the first quarter, up 39% year-over-year. Average revenue per MUP was $92, up 35% year-over-year.
“DraftKings first quarter performance – 84% year-over-year revenue growth and share gains underpinned by a relentless focus on-operational efficiency – demonstrates that this is a company positioned for sustained success,” DraftKings CEO Jason Robins said. “We delivered highly successful online sportsbook launches in Ohio and our home state of Massachusetts and continued to create meaningful product differentiation driven by in-house innovations.”
The company ended the quarter live in 21 states for mobile sports betting and in five states for iGaming.
Related Link: DraftKings Pushes Diversification Efforst With Streaming Video Service, What Investors Should Know
What Happened: DraftKings announced it is raising its full year revenue guidance after the first quarter results. The company sees revenue in a range of $3.135 billion to $3.235 billion, which is up from previously guided $2.85 billion to $3.05 billion.
“Strong execution across the organization is showing up in our results,” DraftKings CFO Jason Park said.
The company is also raising its full-year adjusted EBITDA guidance with new guidance of a range of a loss of $340 million to a loss of $290 million, versus a previous range of a loss of $450 million to a loss of $350 million.
“Looking at the remainder of 2023, I am confident DraftKings is well-positioned to achieve profitability on an adjusted EBITDA basis in the near-term and deliver long-term value for our shareholders,” Robins said.
DKNG Price Action: DraftKings stock is up 9% to $23.20 in after-hours trading Thursday.
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