DraftKings’ earnings report, unveiled February 26, missed Wall Street expectations, but revenue exceeded forecasts.
DraftKings said it lost 69 cents per share for the three months ending December 31; forecasters predicted 49 cents a share. Revenues of $322 million jumped up 145.8 percent from the prior year; analysts predicted $232 million.
“We come away encouraged by DraftKings strong execution and attribute the fourth quarter upside to lower-than-anticipated promotion costs and daily fantasy sports, a product that is still growing and where DraftKings may have captured some additional share,” said J.P. Morgan gaming analyst Daniel Politzer.
In a conference call, DraftKings CEO Jason Robins said the return of sports in the post-Covid-19 period accelerated fan involvement with the company. The results led DraftKings to raise its 2021 revenue forecast from as much as $850 million to a cool $1 billion.
“We think the results were broadly encouraging as DraftKings continues to command a dominant share in sports betting and has increased its relevance in iCasino, as evidenced by the quick ramp in Pennsylvania,” said Deutsche Bank gaming analyst Carlo Santarelli.
DraftKings said it raised its estimate after Michigan and Virginia introduced mobile sports betting. The forecast also does not factor in additional legalization in states. The latter made 12 states where DraftKings operates.
