Stephon Gilmore, 24, in the New England Patriots corner stretches during the New England Patriots’ practice session in Foxborough, MA on Oct. 22, 2020.
Barry Chin | Boston Globe | Getty Images
Shares of sports betting company DraftKings surged a whopping 5% in premarket trading Friday after the company reported fourth quarter 2020 earnings that exceeded revenue expectations and paying customer growth.
Here are the key figures:
- Loss per share: 24 cents, versus an expected loss of 47 cents, according to an analyst survey from Refinitiv
- Revenue: $ 322 million vs. $ 232.6 million expected, according to Refinitiv
DraftKings said it now has 1.5 million unique paying customers per month as of the fourth quarter. According to Factset, an estimated 1.43 million were reported. Average revenue per monthly unique payer was $ 65 in the quarter, DraftKings said. The company exceeded 1 million users in the third quarter.
The company also increased its fiscal year 2021 revenue outlook from a range of $ 750 million to $ 850 million to a range of $ 900 million to $ 1 billion. DraftKings pointed to strong user activation due to its 2020 marketing spend, the launch of mobile sports betting and iGaming in Michigan and mobile sports betting in Virginia, and its fourth quarter performance.
“These guidelines also assume that all announced professional and college sports calendars will be realized and that we will continue to operate in the states we are in today,” the company said.
The growing US sports betting market has also allowed DraftKings to expand its market reach since it went public through a SPAC in April.
Currently, 20 states plus Washington DC allow online sports betting, up from 19 in the past quarter. Five states have legalized sports betting but are not yet operational, and 16 states are working on legislation, against six and two, respectively.
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