DraftKings Stock Rises After Raising 2022 Revenue Guidance

Key points:

DraftKings reports Q1 earnings
The company beat revenue expectations and increased revenue guidance
DKNG stock rises 5% premarket
Pre-Event Trading In The Sports Betting Markets

Shares of DraftKings (NASDAQ: DKNG) are up 5% premarket after it reported first-quarter earnings and raised 2022 revenue guidance.

The sports betting company reported a loss per share of $1.14, with revenue coming in at $417 million. Analysts expected a loss of $1.11 and revenue of $404 million.

Revenue rose 34% compared to $312 million during the same period in 2021.

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Monthly Unique Payers grew to 2 million, representing a 29% increase compared to the first quarter of 2021. DraftKings said the rise reflects “strong unique payer retention” and acquisition across online sportsbook and iGaming products and expansion into new states. The average revenue per monthly unique payers was $67, an 11% increase compared to the previous year.

“We are not seeing any impact from inflationary pressures on customer demand, and we continue to improve the user experience by adding breadth and depth to our DFS, mobile sports betting, and iGaming products,” said said Jason Robins, DraftKings’ co-founder, Chief Executive Officer and Chairman of the Board.

The company raised its fiscal 2022 revenue guidance from a range of $1.85 billion to $2.0 billion to between $1.925 billion to $2.025 billion. It also improved its 2022 adjusted EBITDA guidance from between a loss of $825 million and $925 million to a loss of $760 million to $840 million.

After launches in New York and Louisiana, DraftKings is now live with mobile sports betting in 17 states, while it is also live with iGaming in 5 states.