Zona de Azar USA – DraftKings Q1 Results Beat Expectations, Shares Surge
USA.- May 9th 2023 www.zonadeazar.com Sports-betting giant DraftKings’ shares surged 15% Friday in the aftermath of better-than-forecast first-quarter results. In addition, investors were incentivized by the company’s claim that it will be breakeven on an adjusted EBITDA basis in the second quarter and achieve nearly $150 million of positive adjusted EBITDA in the fourth quarter.
An American sportsbook company that foresees turning a profit in the next six months or so? DraftKings shares rose $3.27, or 15.3%, Friday to close at $24.73 on the Nasdaq Stock Market. The shares climbed further after hours, adding 15 cents, or 0.61%, to settle at $24.73.
In a statement, Boston-based DraftKings raised its 2023 revenue guidance above $3 billion, continuing a string of increasing estimates.
In the meantime, its net loss was $397.1 million, or 87 cents per share, in the three months ended March 31. But again, that compared favorably with a net loss of $467.7 million, or $1.14 per share, a year earlier.
Adjusted earnings per share, which exclude one-time costs, were 51 cents per share, which beat the 76-cent-per-share loss forecast of analysts surveyed by Seeking Alpha.
Adjusted earnings before interest, taxes, depreciation, and amortization, a cash-flow measure that also excludes one-time costs, narrowed to a $221.6 million loss from a year-earlier $289.5 million loss.
Revenue rose 84% to $770 million from $417 million, topping the $697.5 million forecast of Seeking Alpha-polled analysts. DraftKings said new-customer acquisition and a higher hold percentage helped buoy the revenue increase.
Based on existing business and growth potential, DraftKings raised its full-year revenue guidance to a range of $3.135 billion to $3.235 billion.
“Our mantra of revenue growth and cost efficiency is gaining even more momentum throughout the organization,” Chief Executive Officer Jason Robins said in a conference call with analysts and journalists, later adding, “Also, there’s a lot of momentum in the industry. People travel to different states. They have friends playing.”
In March, DraftKings launched DK Horse, a standalone horse-racing app that allows wagering on races from hundreds of domestic and international tracks, including all three Triple Crown races. The app was ready for Saturday’s Kentucky Derby.
DraftKings’ average number of monthly unique payers in the first quarter rose 39% from a year earlier to 2.8 million. Strong unique-payer retention and acquisition across sportsbook and internet gaming products and expansion into new jurisdictions drove the increase.
The company’s average revenue per monthly unique payer in the first quarter rose 35% from a year earlier to $92.
Edited by: @MaiaDigital www.zonadeazar.com
