Over one million paying customers on average used DraftKings during each month of Q3GETTY IMAGES
DraftKings shares jumped 9% when markets opened Friday, after the company "reported its third-quarter earnings, indicating sports betting remains popular," according to Anissa Gardizy of the BOSTON GLOBE. DraftKings reported "third-quarter revenue" of $133M, a 42% "increase compared to the same period last year." The company said that "on average, more than 1 million paying customers used DraftKings during each month of the last quarter," which represents a 64% "increase year-over-year." The sports gaming company also "raised its annual revenue expectation" to between $540-560M and is "on track for upwards" of 30% growth over last year. DraftKings shares opened on Friday at $45.40 and closed at $42.84 (BOSTON GLOBE, 11/14). At presstime, shares of DraftKings were trading at $42.19, down 1.52% from the close of business on Friday (THE DAILY).
IN LINE WITH PROJECTIONS: The WALL STREET JOURNAL's Matt Grossman noted DraftKings’ tally of monthly unique players "grew by 64% year over year to more than 1 million in the July-to-September period." DraftKings’ revenue growth is "roughly in line" with the $131.7M that "analysts polled by FactSet had forecast." According to DraftKings’ estimate, next year's revenue "would likely be" $750-850M, which "would represent approximately 45% growth over 2020 projections at the midpoint of the range." The company said that recent launches in Illinois, West Virginia and Tennessee have "expanded DraftKings’ footprint," and added that it "aims to open additional new markets." DraftKings said that it is "working with regulators to roll out sports betting in Michigan and Virginia, where it has been legalized" (WALL STREET JOURNAL, 11/14).
