DraftKings reports a 64% annualised growth in its monthly paying users

Written by: Wajeeh Khan
November 13, 2020
  • DraftKings reports a 64% annualised growth in its monthly paying users.
  • The U.S. company lost 43.31 pence per share in the fiscal third quarter.
  • The sports betting firm forecasts up to £425.52 million of revenue in 2020.

DraftKings Inc. (NASDAQ: DKNG) published its financial results for the fiscal third quarter on Friday that came in better than what analysts had anticipated. The company also reported an increase in its total number of users in the recent quarter.

DraftKings is currently trading at a per-share price of £32.37 versus a sharply lower £8.12 per share at the start of the year. The stock had touched a year to date high of £48.46 per share in the first week of October. Trading stocks online is easier than you think. Here’s how you can buy shares online in 2020.

DraftKings’ Q3 financial results versus analysts’ estimates

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According to Refinitiv, experts had forecast the company to print £100.30 million of revenue in the third quarter. Their estimate for loss per share stood at 46.35 pence per share. In its report on Friday, DraftKings topped both estimates posting a higher £101.06 million of revenue and a lower 43.31 pence of loss per share in Q3.

The sports betting operator also said on Friday that the number of its monthly unique paying users increased by 64% on a year over year basis to more than 1 million in the recent quarter. In the prior quarter (Q2), DraftKings had revealed a broader than expected loss, as per the report published in August.

CEO Jason Robins on DraftKings commented on the earnings report on Friday and said:

“The resumption of major sports such as the NBA, MLB, and the NHL in the third quarter, as well as the start of the NFL season, generated tremendous customer engagement.”

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DraftKings’ guidance for the full fiscal 2020

For the full fiscal 2020, the Boston-based company now forecasts £410.33 million to £425.52 million of revenue. In fiscal 2021, DraftKings now expects up to £645.89 million of revenue. In separate news from the United States, Palantir reported a 52% sales growth in its 1st financial report after going public.  

In the prior quarter, DraftKings spent millions to partner with Michael Jordan, Turner Sports, Chicago Cubs, ESPN, and many more. At the time of writing, 20 states in total, including Washington D.C., allow sports betting on the internet.

DraftKings has gained close to 300% in the stock market since its debut in July 2019. At the time of writing, the American daily fantasy sports contest company has a market capitalisation of £11.85 billion.