Tech

DraftKings stock jumps after betting company reports third-quarter beat, surge in users

Key Points
  • Shares of sports betting company DraftKings jumped after the company reported better-than-expected third-quarter results and a surge in users.
  • The company said its monthly unique payers surpassed 1 million.
  • It also raised its fiscal year 2020 guidance to a range of $540 million to $560 million, from a range of $500 million to $540 million.
The entrance from the elevators, designed to resemble a tunnel entering a stadium, is pictured at the new DraftKings office in Boston on March 25, 2019.
David L. Ryan | The Boston Globe via Getty Images

Shares of sports betting company DraftKings jumped as much as 10.3% Friday morning after the betting company reported better-than-expected third-quarter results and a surge in users. The company's shares closed up nearly 4%.

Here are the results:

  • Loss per share: 57 cents, vs an expected loss of 61 cents, according to a Refinitiv survey of analysts
  • Revenue: $133 million, vs $132 million expected, according to Refinitiv

The company said its monthly unique payers surpassed 1 million, a 64% increase from a year earlier.

"The resumption of major sports such as the NBA, MLB and the NHL in the third quarter, as well as the start of the NFL season, generated tremendous customer engagement," DraftKings CEO Jason Robins said in a press release.

The company also raised its fiscal year 2020 guidance to a range of $540 million to $560 million, from a range of $500 million to $540 million. DraftKings said it expects $750 million to $850 million in revenue for 2021.

DraftKings spent millions last quarter on its partnerships, including with Michael Jordan in an equity deal, and with the New York Giants, Chicago Cubs, Turner Sports and ESPN.

The company had been looking to increase its brand exposure as it fought to gain market share in the growing sports betting landscape. Currently, 19 states, plus Washington, D.C., allow online sports betting. Six states legalized sports wagering but are not yet operational, while two states are working on legislation to allow betting.  

DraftKings in April combined with Diamond Eagle Acquisition Corp., a special purpose acquisition company and gaming technology provider SBTech to make its public debut.

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