DraftKings posts 44% income development and narrowing losses, however falls wanting estimates


DraftKings on Thursday posted quarterly outcomes that missed Wall Road estimates on the highest and backside line, but it surely elevated its income by 44%.

DraftKings CEO Jason Robins informed CNBC on Friday that the quarter took successful from unfavorable outcomes from the NFL video games.

“We had the worst two-week run of NFL outcomes we have had since we have been a public firm,” Robins stated. “The character of the enterprise whenever you’re taking dangers on sports activities outcomes, you are going to have buyer pleasant outcomes and it at all times sort of swings again over time.”

Regardless of these challenges, Robins highlighted the corporate’s buyer expertise “strongly outperformed expectations.”

The corporate is rising its fiscal yr 2024 steering to between $410 million and $510 million in comparison with its prior steering of between $350 million and $450 million.

“We simply had a number of unhealthy sports activities outcomes, however that’ll occur.” Robins stated. “That was actually what gave us the arrogance to make a 15% enhance in our backside line information for this yr.”

The corporate’s steering excludes the estimated influence associated to plans to accumulate lottery app Jackpocket for roughly $750 million, introduced after the bell Thursday.

“Jackpocket is a really distinctive asset,” Robins stated. “It is within the lottery business, which is among the oldest types of gaming within the U.S. and has a large addressable viewers with a lot of clients.”

Here is how DraftKings carried out within the fourth quarter, in contrast with what Wall Road was anticipating, in accordance with analyst estimates compiled by LSEG, previously often known as Refinitiv:

  • Loss per share: 10 cents vs. anticipated revenue of 8 cents
  • Income: $1.23 billion vs. $1.24 billion anticipated

The sports activities betting firm noticed a 44% enhance in income year-over-year.

For the final three months of 2023, DraftKings reported a internet lack of $44.6 million in contrast with $242.7 million in the identical interval a yr earlier. Losses per share improved to a lack of 10 cents versus a lack of 53 cents in 2022.

After adjusting for one-time gadgets, largely associated to stock-based compensation, DraftKings reported a revenue of 29 cents per share.

DraftKings garnered 3.5 million common “month-to-month distinctive payers,” a 37% enhance from the identical interval in 2022. The corporate’s common income per MUP noticed a 6% increase within the fourth quarter in comparison with the earlier yr.

DraftKings not too long ago launched its Sportsbook product in Maine and Vermont, bringing it to a complete of 24 states permitting its cell sports activities betting.

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