DraftKings stock jumps after raising revenue forecast

Business News

DraftKings raised its 2020 revenue guidance and reported third-quarter earnings that exceeded expectations.

DraftKings now expects revenue this year of $540 million to $560 million, up more than 25% from 2019 pro-forma levels and higher than its previous guidance of $500 million to $540 million.

Revenue in the quarter climbed 42% from prior-year levels to reach $133 million. The company said more than 1 million monthly unique paying customers were engaged with DraftKings each month during the third quarter, up 64% from the same period in 2019.

In raising its revenue outlook, DraftKings said it is assuming the plans for sports leagues are maintained through the end of the year. College football, though, is a major question mark. Ohio State, a national power, may end up playing only five games this season after canceling Saturday’s game with Maryland due to a coronavirus outbreak. Nationwide, at least 18 college games have been canceled or postponed, programs had to cancel or postpone at least 18 games in the first half of November due to Covid-19 outbreaks. College basketball could face similar challenges.