After the sports betting business revealed slower-than-anticipated third-quarter monthly client growth, DraftKings stock plunged 28% on Friday.
But after quarterly earnings exceeded Wall Street projections, the business increased its revenue forecast for the year. It didn’t lose as much money during the period as was predicted.
For the three months that concluded on September 30, DraftKings reported an increase in unique paying customers of nearly 22%, from 1.3 million to 1.6 million monthly for the quarter. According to StreetAccount, it was less than the 2 million analysts had predicted and slower than in the preceding two quarters.
According to DraftKings, the September-launched expansion of its online Sportsbook product would promote client acquisition, engagement, and retention.
DraftKings said that it is live with mobile sports betting in 18 states, which account for nearly 37% of the population of the United States, following the opening of its online Sportsbook in Kansas in September. According to it, subject to licencing and regulatory permissions, it intends to begin operations in Maryland, Puerto Rico, Ohio, and Massachusetts.
According to Jason Robins, co-founder and CEO of DraftKings, “Our team continued to drive top-line growth through highly effective consumer engagement and appealing product and technology advancements while keeping focused on our road to profitability.”
In comparison to a loss of $545 million during the same period last year, the business recorded a net loss of around $450 million, or $1 per share, for the quarter that ended on September 30. An analyst loss estimate of $1.04 per share was made.
The period’s revenue increased to $502 million, exceeding the $437 million Wall Street anticipated.
From an earlier forecast of between $2.08 billion and $2.18 billion, the business increased its revenue outlook for 2022 to a range of $2.16 billion to $2.19 billion.