Sports betting DraftKings reported better than feared loss per share and higher earnings for its Friday first quarter and raised its full-year revenue forecast.
Shares gained 3.7% in Friday’s premarket.
Here are the main numbers:
- Loss per share: 36 cents versus 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 unique paying customers per month as of the first quarter, holding its profit in the fourth quarter. According to FactSet, it was expected to report 1.31 million.
Average revenue per monthly unique paying customer was $61 in the first quarter, up 48% from 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 revenue forecast for fiscal 2021 to a range of $1.05 billion to $1.15 billion from $900 million to $1 billion, representing a year-over-year growth of 63% to 79%. . DraftKings has 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 driven by 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 announced come to fruition and that we continue to operate in states we live in today.”
Friday’s report marks the company’s first full year as a publicly traded company since it went public through a SPAC last April. The company has weathered the growing legalization of sports betting in the United States, expanding 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 in the past quarter. Six states have legalized sports betting but are not yet operational, and 13 states are working on legislation.