Loss not as bad as feared

DraftKings clock at the UFC venue.

Source: DraftKings

Sports betting firm DraftKings reported better-than-feared loss per share and higher sales for the first quarter on Friday and raised its full-year sales forecast.

The shares gained 3.7% on the Friday before the IPO.

Here are the key numbers:

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

DraftKings said it had 1.5 million one-time paying customers per month in the first quarter and was sticking to its fourth quarter earnings. According to FactSet, 1.31 million were expected.

Average revenue per monthly paying customer was $ 61 in the first quarter, a 48% increase over the same period in 2020, cross-selling.

The company increased its fiscal 2021 revenue forecast from $ 900 million to $ 1 billion to $ 1.05 billion to $ 1.15 billion, a year-over-year growth of 63% to 79%. DraftKings credited the expected return to normal sports season for guideline increase.

“The increase reflects solid performance in the first quarter of 2021, continued strong user engagement from 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 recent acquisitions.” said the company. “These instructions also assume that all announced professional and university sports calendars will be implemented and that we will continue to operate in the states in which we 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 was able to drive the increasing legalization of sports betting in the US and thus help to expand its market reach. DraftKings is live with online sports betting in 12 states.

21 states and the District of Columbia currently allow online sports betting, up from 20 in the last quarter. Six states have legalized sports betting but are not yet operational, and 13 states are working on legislation.

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