The elevator entrance, which resembles a tunnel leading into a stadium, is pictured in the new DraftKings office in Boston on March 25, 2019.
David L. Ryan | The Boston Globe via Getty Images
Sports betting firm DraftKings’ shares rose more than 7% on Friday after the company reported better-than-expected third-quarter results and an increase in user numbers.
Here are the results:
- Loss per share: 57 cents compared to 61 cents according to a refinitive poll of analysts
- Revenue: $ 133 million versus $ 132 million expected according to Refinitiv
The company said its monthly individual payers exceeded 1 million, a 64% increase from the year-ago quarter.
“The resumption of major sports such as the NBA, MLB and NHL in the third quarter and the start of the NFL season created enormous customer loyalty,” said Jason Robins, CEO of DraftKings, in a press release.
The company increased its guidance for fiscal 2020 to $ 540 million to $ 560 million from $ 500 million to $ 540 million. DraftKings expects sales of $ 750 million to $ 850 million in 2021.
DraftKings spent millions on its partnerships last quarter, including with Michael Jordan on a stock deal, the New York Giants, the Chicago Cubs, Turner Sports, and ESPN.
The company had sought to increase its brand awareness as it struggled to gain market share in the growing sports betting landscape. Currently 19 states and Washington DC allow online sports betting. Six states have legalized sports betting but are not yet operational, while two states are working on laws to allow betting.
DraftKings made its public debut in April with Diamond Eagle Acquisition Corp., a Special Purpose Acquisition Company (SPAC), and gaming technology provider SBTech. The company’s stock was up 285.51% that year at close of trading on Thursday.
Subscribe to CNBC on YouTube.