New England Patriots cornerback Stephon Gilmore, 24, stretches during the New England Patriots practice session October 22, 2020 in Foxborough, MA.
Barry Chin | Boston Globe | Getty Images
Shares in sports betting company DraftKings rose 8.4% on Friday after the company reported fourth-quarter 2020 earnings that exceeded revenue expectations and paying customer growth.
The company’s stock closed nearly 6.5%.
Here are the key numbers:
- Loss per share: 24 cents compared to an expected loss of 47 cents according to a refinitive poll of analysts
- Revenue: According to Refinitiv, it is expected to be $ 322 million versus $ 232.6 million
DraftKings announced that there will be 1.5 million monthly paying customers as of the fourth quarter. An estimated 1.43 million have been reported, according to Factset. According to DraftKings, the average revenue per monthly single payer for the quarter was $ 65. The company exceeded 1 million users in the third quarter.
The company also increased its revenue prospect for fiscal 2021 from $ 750 million to $ 850 million to $ 900 million to $ 1 billion. DraftKings noted strong user engagement from its 2020 marketing spend, the launch of mobile sports betting and iGaming in Michigan, and mobile sports betting in Virginia, and their fourth quarter performance.
“This guide also assumes that all announced professional and college sports calendars will materialize and that we will continue to operate in the states we live in today,” the company said.
The growing US sports betting market has also allowed DraftKings to expand its market reach since it went public via a SPAC last April.
Currently, 20 states and Washington, DC allow online sports betting, up from 19 in the last quarter. Five states have legalized sports betting but are not yet operational, and 16 states are working on laws, six and two respectively.
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