New England Patriots cornerback Stephon Gilmore, #24, stretches during the New England Patriots practice session in Foxborough, Massachusetts, on Oct. 22, 2020.
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Sports betting company DraftKings on Thursday posted quarterly revenue that came in ahead of analysts’ expectations as the company rises to the top of the highly competitive online gambling industry.
Shares for DraftKings gained about 7% in extended trading Thursday after rising 6% during the regular session.
Here’s what DraftKings reported for the third quarter, ending Sept. 30:
- Loss per share: 61 cents
- Revenue: $790 million vs. $706.8 million expected, according to consensus estimates by LSEG, formerly known as Refinitiv
It wasn’t immediately clear whether the company’s reported loss per share was comparable to the 69 cent loss expected by analysts, according to LSEG.
DraftKings reported a net loss of $283.1 million, or 61 cents per share, compared to a loss of $450.5 million, or $1 per share, in the same period a year earlier.
Revenue for the third quarter increased 57% to $790 million.
The company said growth was spurred by its expansion into new jurisdictions, which led to a boost in new customers. All the while, existing customers were more engaged and spent more money on the platform.
“Our fantastic third-quarter results demonstrate the positive impact of our product and technology investments as well as excellent preparation and execution by our entire organization,” said CEO Jason Robins. “Our new and differentiated features and functionality have created an exceptional user experience that sustains engagement for our mobile sports betting and iGaming customers.”
DraftKings reported 2.3 million monthly unique payers in the third quarter, representing a 40% increase year over year. Average revenue per monthly unique payer increased 14% to $114, the company added.
DraftKings also expanded into Kentucky and is planning on additional launches in Maine and in North Carolina, pending regulatory approvals. Currently, the company is live with mobile sports betting in 22 states and live with iGaming in five states. It also has a sports betting and iGaming presence in Ontario, Canada.
Last month, DraftKings overtook rival sportsbook FanDuel for the first time in market share to become the leader in the U.S. online gambling market, according to market research firm Eilers & Krejcik Gaming.
DraftKings accounted for about 31% of online gambling revenue in the third quarter, through Aug. 23, while FanDuel’s market share fell to 30%, according to Eilers & Krejcik.
For the full fiscal year 2023, DraftKings raised its revenue guidance to a range of $3.67 billion to $3.72 billion, up from a previously stated range of $3.46 billion to $3.54 billion.
For its fiscal 2024, DraftKings expects revenue of $4.50 billion to $4.80 billion.
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