May 21, 2024

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DraftKings (DKNG): Q4 2020 earnings

2 min read

New England Patriots cornerback Stephon Gilmore (24) stretches for the duration of the New England Patriots follow session in Foxborough, MA on Oct. 22, 2020.

Barry Chin | Boston Globe | Getty Images

Shares of sports activities betting company DraftKings jumped as substantially as 8% Friday early morning just after the enterprise documented fiscal fourth quarter 2020 earnings that defeat earnings expectations and advancement in spending shoppers.

Listed here are the vital figures:

  • Loss per share: 24 cents, vs. an expected reduction of 47 cents, in accordance to a Refinitiv survey of analysts
  • Income: $322 million vs. $232.6 million envisioned, according to Refinitiv

DraftKings stated it now 1.5 million month to month one of a kind shelling out clients as of its fourth quarter. It was estimated to report 1.43 million, according to Factset. Common earnings for each month to month exceptional payer was $65 in the quarter, DraftKings explained. The corporation surpassed 1 million users in its 3rd quarter.

The enterprise also lifted its earnings outlook for the fiscal year 2021 from a variety of $750 million to $850 million to a assortment of $900 million to $1 billion. DraftKings pointed to powerful user activation because of to its 2020 advertising commit, the launch of cell sporting activities betting and iGaming in Michigan and mobile athletics betting in Virginia, and its general performance in the fourth quarter.

“This guidance also assumes that all specialist and college or university sports activities calendars that have been announced come to fruition and that we carry on to work in states in which we are are living now,” the enterprise mentioned.

The expanding sporting activities-betting current market in the U.S. has also authorized DraftKings to extend its market attain considering the fact that it went general public as a result of a SPAC very last April.

Presently, 20 states, furthermore Washington, D.C., allow on line athletics betting, up from 19 this earlier quarter. Five states legalized sports wagering but are not still operational, and 16 states are operating on legislation, up from six and two, respectively.

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