DraftKings shares surge as earnings beat expectations

Finance News

DraftKings has revealed a better than expected fourth quarter and raised its 2021 sales guidance as sports wagering bounces back from the pandemic.

Revenue rose to $322.2 million from $130.9 million. Accounting for the pro-forma effect to the combination with SBTech (Global) Ltd. and Diamond Eagle Acquisition Corp. completed April 23, 2020, as if it had occurred Jan. 1, 2019, revenue grew 98% for the quarter.

The company also raised its revenue outlook for the fiscal year 2021 from a range of $750 million to $850 million to a range of $900 million to $1 billion. DraftKings pointed to strong user activation due to its 2020 marketing spend, the launch of mobile sports betting and iGaming in Michigan and mobile sports betting in Virginia, and its performance in the fourth quarter.

“This guidance also assumes that all professional and college sports calendars that have been announced come to fruition and that we continue to operate in states in which we are live today,” the company said.