DraftKings (DKNG): Q1 2021 revenues

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Source: DraftKings

Sports-wagering business DraftKings reported better-than-expected loss per share and profits for its very first quarter, and raised its full-year profits assistance.

Shares were down more than 1% in the premarket after a preliminary pop on the report.

Here are the crucial numbers:

  • Loss per share:  36 cents vs 42 cents anticipated, according to a Refinitiv study of experts
  • Revenue:  $312 million vs $236.2 million anticipated, per Refinitiv

DraftKings stated it has 1.5 million million regular monthly distinct paying clients since its very first quarter, hanging on to the gains in made in its 4th quarter. It was anticipated to report 1.31 million, according to Factset.

Average profits per regular monthly distinct paying consumer was available in at $61 in the very first quarter, representing a 48% boost versus the exact same duration in 2020. The business stated that was improved by increased engagement with its iGaming and mobile sports wagering item offerings, along with cross-selling.

The business likewise raised its 2021 profits assistance to a series of $1.05 billion to $1.15 billion from a series of $900 million to $1 billion, which corresponds to year-over-year development of 63% to 79%. DraftKings credited the anticipated return of typical sports seasons for the boost in assistance.

“The increase reflects solid performance in the first quarter of 2021, continued strong user activation due to 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 business stated. “This guidance also assumes that all professional and college sports calendars that have been announced come to fruition and that we continue to operate in states in which we are live today.”

Friday’s report marks the business’s very first complete year as an openly traded business, given that it went public last April by means of a SPAC. The business has actually had the ability to ride growing sports wagering legalization throughout the United States, assisting broaden its market reach. DraftKings is cope with online sports wagering in 12 states.

Currently, 21 states, plus Washington, D.C., permit online sports wagering, up from 20 this previous quarter. Six specifies legalized sports betting however are not yet functional, and 13 states are dealing with legislation.

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