DraftKings (DKNG): Q3 Earnings Report – tech2.org

DraftKings (DKNG): Q3 Earnings Report

Entrance to the lift, designed to resemble a tunnel entering a stadium, was painted at the new DraftKings office in Boston on March 25, 2019.

David L. Ryan | Boston Globe via Getty Image

Shares of sports betting company DraftKings jumped more than 10% on Friday in premarket trading, as the company expected better third-quarter results and a surge in users.

Here are the results:

  • Loss per share: According to refinitive survey of analysts, 57 cents vs. 61 cents is expected
  • Revenue according to refinitiv: $ 133 million, vs. $ 132 million expected

The company said its monthly unique payers exceeded 1 million, a 64% increase from the same quarter a year earlier.

“The resumption of major games like the NBA, MLB and NHL in the third quarter, as well as the start of the NFL season, generates tremendous customer engagement,” DraftKings CEO Jason Robbins said in a press release.

The company raised its fiscal year 2020 guidance to a range of $ 500 to $ 540 million from $ 540 to $ 560 million. DraftKings said it expects revenue of $ 750 million to $ 850 million for 2021.

DraftKings spent millions of dollars in its partnerships, including Michael Jordan, the New York Giants, Chicago Cubs, Turner Sports and ESPN in an equity deal.

The company was looking to increase its brand exposure as it fought to gain market share in the growing sports betting landscape. Currently, 19 states, plus Washington DC, allow online sports betting. Six states have legalized wagering, but are not yet operational, while two states are working on legislation to allow betting.

DraftKings made its public debut in April in association with Diamond Eagle Acquisition Corp, a special purpose acquisition company (SPAC), and gaming technology provider SBTech. As of Thursday’s close the company’s stock has risen 285.51% this year.

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