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The elevator entrance, designed to look like a tunnel entering a stadium, is pictured at the DraftKings new office in Boston on March 25, 2019.
David L. Ryan | The Boston Globe via Getty Images
Shares of sports betting firm DraftKings jumped more than 9% in pre-market trading on Friday after the company reported better-than-expected third-quarter results and an increase in user numbers.
Here are the results:
- Loss per share: 57 cents, vs. 61 cents expected, according to Refinitiv survey of analysts
- Revenue: $ 133 million, vs. $ 132 million expected, according to Refinitiv
The company said its monthly single payers exceeded 1 million, a 64% increase from the same quarter a year ago.
“The resumption of major sports such as the NBA, MLB and NHL in the third quarter, as well as the start of the NFL season, has generated tremendous customer engagement,” DraftKings CEO Jason Robins said in a statement. Press.
The company also raised its guidance for fiscal 2020 to a range of $ 540 million to $ 560 million, from a range of $ 500 million to $ 540 million. DraftKings said it projects revenue of $ 750 million to $ 850 million for 2021.
DraftKings spent millions in the last quarter on its partnerships, including with Michael Jordan in an equity deal, the New York Giants, Chicago Cubs, Turner Sports, and ESPN.
The company was looking to increase its brand exposure as it struggled to gain market share in the growing sports betting landscape. Currently, 19 states, plus Washington DC, allow online sports betting. Six states have legalized sports betting but are not yet operational, while two states are working on legislation allowing betting.
DraftKings in April, combined with Diamond Eagle Acquisition Corp., a special purpose acquisition company (SPAC), and gaming technology provider SBTech to make its public debut. The company’s stock has gained 285.51% this year as of Thursday’s close.
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