DraftKings, a leading sports-betting company in the U.S., experienced a 14% surge in stock ahead of the market opening on Friday after it exceeded revenue expectations in the second quarter. Additionally, the company has raised its full-year revenue and earnings guidance.
According to Chief Financial Officer Jason Park, DraftKings’ unit economics have been exceptional, benefitting from the cash generated by states that have allowed sports betting for a longer duration. This has enabled the company to fund launches in new states, positioning it well for continued growth as more states legalize sports betting.
During Q2, DraftKings reported a revenue of $875 million, marking an 88% increase from the previous year and surpassing expectations of $765 million. Additionally, adjusted earnings of 14 cents per share outperformed estimates of a loss of 12 cents.
With these positive results, DraftKings has revised its full-year revenue guidance to a range of $3.46 billion to $3.54 billion, signifying a growth of 54% to 58% compared to their earlier forecast of $3.14 billion to $3.24 billion. Furthermore, the company now anticipates a smaller Ebitda loss of $190 million to $220 million rather than the previously expected loss of $290 million to $340 million.
Thus far, DraftKings has had an exceptional year with its stock soaring by 163% as of Thursday’s closing.
