Shares of the Boston company were rising 1.2% to $52.50 in premarket trading.
DraftKings reported a loss of $346.3 million, or 87 cents a share, compared with a year-earlier loss of $68.7 million, or 37 cents a share. The company reported a pro forma loss of $82.1 million in the year-ago quarter.
The adjusted loss came to 36 cents a share. Analysts surveyed by FactSet had forecast a first-quarter adjusted loss of 43 cents a share.
Revenue totaled $312.3 million, up 252.6% from a year ago and handily beat analysts' estimates of $236.2 million.
Monthly unique payers (MUPs) increased 114% to 1.5 million, topping the average analyst forecast for 1.19 million.
The increase was boosted by "solid customer acquisition and retention as well as successful launches of mobile sports betting and iGaming in new states," the company said.
Looking ahead, DraftKings raised its fiscal 2021 revenue guidance from a range of $900 million to $1 billion to a range of $1.05 billion to $1.15 billion. Analysts had been calling for revenue of $1.05 billion.
"The results showed that Americans continued to bet on sports and play games like poker and blackjack on their phones despite the U.S. economy reopening as vaccine distribution ramped up," CEO Jason Robins said in a statement Friday. "The guidance assumes that announced professional and college sports calendars come to fruition. “DraftKings is off to an outstanding start in 2021.”
On Monday, Cowen analyst Stephen Glagola upgraded DraftKings to outperform from market perform with a $70 price target.
Last week, Guggenheim Securities analyst Curry Baker initiated coverage of the stock with a buy rating and a $75 price target.