DraftKings second-quarter profit and raised its full-year sales forecast
DraftKings Inc., an online sports-betting platform, experienced a rally in its stock after reporting a surprise second-quarter profit and raising its full-year sales forecast. The company’s full-year sales outlook was revised to $3.46 billion to $3.54 billion, surpassing FactSet estimates. DraftKings attributed its success to acquiring new customers efficiently, retaining existing players through product innovation and fewer promotions, and better bet mix. The company’s unit economics are strong, with revenue generated from older states sufficiently funding expansion into new states.
DraftKings highlighted that Kentucky, North Carolina, Vermont, and Puerto Rico have authorized mobile sports betting, and it plans to launch its sportsbook in Kentucky on September 28. In the second quarter, revenue surged to $874.9 million compared to $466.2 million in the previous year’s quarter. Adjusted for certain items, DraftKings reported a profit of 14 cents per share, beating analysts’ expectations for an adjusted per-share loss of 25 cents. On a GAAP basis, the company reported a net loss of $77.3 million.