DraftKings Inc. (DKNG) - Get Report posted stronger-than-expected third quarter revenues Friday, a boosted its full-year guidance, as the sports betting group capitalized on the return on NFL football and a full slate of professional sports during the coronavirus pandemic.
DraftKings said its loss for the three months ending in September was pegged at a wider-than-forecast $347.75 million, but noted that group revenues nearly doubled from last year to $132.8 million as professional sports in the United States, particularly NFL football, returned to the field.
DraftKings said it sees 2020 revenues rising between 25% to 30% from last year to as high a $560 million and issued 2021 guidance in the range of $750 million to $850 million.
“The resumption of major sports such as the NBA, MLB and the NHL in the third quarter, as well as the start of the NFL season, generated tremendous customer engagement,” said CEO Jason Robins. “In addition to our year-over-year pro forma revenue growth of 42%, DraftKings recorded an increase in monthly unique payers of 64% to over 1 million, demonstrating the effectiveness of our data-driven sales and marketing approach."
"Our product offerings and scalable platform provide a distinctive and personalized experience for customers across the ten states where we operate mobile sports betting today, and we look forward to entering additional jurisdictions at the earliest opportunity," he added.
Draft Kings shares were marked 9.2% higher in early Friday trading immediately following the earnings release to change hands at $44.89 each, a move that extends the stock's six-month gain to just over 77% and values the Boston-based sports betting group at around $17 billion.