DraftKings shares rise after reporting a beat on revenue, more growth in paying customers

Original England Patriots cornerback Stephon Gilmore (24) stretches all the design in which by the Original England Patriots command session in Foxborough, MA on Oct. 22, 2020.

Barry Chin | Boston Globe | Getty Photography

Shares of sports betting firm DraftKings jumped extra than 5% Friday morning after the firm reported fiscal fourth quarter 2020 earnings that beat earnings expectations and boost in paying potentialities.

Here are the main numbers:

  • Loss per part: 24 cents, vs. an anticipated lack of 47 cents, in accordance to a Refinitiv gape of analysts
  • Income: $322 million vs. $232.6 million anticipated, in accordance to Refinitiv

DraftKings talked about it now 1.5 million monthly habitual paying potentialities as of its fourth quarter. It used to be estimated to document 1.43 million, in accordance to Factset. Reasonable earnings per monthly habitual payer used to be $65 in the quarter, DraftKings talked about. The firm surpassed 1 million customers in its third quarter.

The firm also raised its earnings outlook for the fiscal year 2021 from a unfold of $750 million to $850 million to a unfold of $900 million to $1 billion. DraftKings pointed to solid individual activation due to its 2020 advertising and marketing use, the commence of mobile sports betting and iGaming in Michigan and mobile sports betting in Virginia, and its efficiency in the fourth quarter.

“This steering also assumes that every skilled and college sports calendars which have been equipped in relation to fruition and that we proceed to feature in states wherein we are reside this present day,” the firm talked about.

The increasing sports-betting market in the U.S. has also allowed DraftKings to magnify its market attain since it went public by a SPAC closing April.

At video display, 20 states, plus Washington, D.C., permit online sports betting, up from 19 this previous quarter. Five states legalized sports wagering but must no longer yet operational, and 16 states are working on laws, up from six and two, respectively.

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