Home Business DraftKings inventory jumps after reporting third-quarter beat, surge in customers

DraftKings inventory jumps after reporting third-quarter beat, surge in customers

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The doorway from the elevators, designed to resemble a tunnel getting into a stadium, is pictured on the new DraftKings workplace in Boston on March 25, 2019.

David L. Ryan | The Boston Globe through Getty Photographs

Shares of sports activities betting firm DraftKings jumped greater than 8% in premarket buying and selling Friday after the corporate reported better-than-expected third quarter results and a surge in customers.

Listed here are the outcomes:

  • Loss per share: 57 cents, vs 61 cents anticipated, in keeping with a Refinitiv survey of analysts
  • Income: $133 million, vs $132 million anticipated, in keeping with Refinitiv

The corporate mentioned its month-to-month distinctive payers surpassed 1 million, a 64% enhance in comparison with the identical quarter a yr in the past.

“The resumption of main sports activities such because the NBA, MLB and the NHL within the third quarter, in addition to the beginning of the NFL season, generated super buyer engagement,” DraftKings CEO Jason Robins mentioned in a press launch.

The corporate additionally raised its fiscal yr 2020 steering to a variety of $540 to $560 million, from a variety of $500 to $540 million. DraftKings mentioned it expects $750 million to $850 million in income for 2021.

DraftKings spent tens of millions final quarter on its partnerships, including with Michael Jordan in an fairness deal, the New York Giants, Chicago Cubs, Turner Sports and ESPN.

The corporate had been seeking to enhance its model publicity because it fought to achieve market share within the growing sports activities betting panorama. At the moment, 19 states, plus Washington D.C., permit on-line sports activities betting. Six states legalized sports activities wagering however should not but operational, whereas two states are engaged on laws to permit betting.  

DraftKings in April mixed with Diamond Eagle Acquisition Corp., a particular goal acquisition firm (SPAC), and gaming expertise supplier SBTech to make its public debut. The corporate’s inventory has gained 285.51% this yr as of Thursday’s shut.

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