- DraftKings beat estimates in its fourth quarter earnings report.
- But shares fell after the company reported an adjusted EBITDA loss for 2022 that was much higher than analysts had anticipated.
- The company saw steeper operating expenses in the quarter compared to the previous period.
Shares of DraftKings fell 21.6% Friday after it posted fourth-quarter earnings that beat analyst estimates for the quarter but revealed the company expects a greater adjusted loss for 2022 than analysts had projected.
Here's what the company reported:
- Loss per share: 35 cents, ex-items vs 81 cents estimated, according to a Refinitiv survey of analysts
- Revenue: $473 million vs $445 million estimated, according to Refinitiv
But DraftKings said it expected an adjusted EBITDA loss for 2022 between $825 million and $925 million, much higher than the estimated adjusted EBITDA loss of $572.7 million, according to StreetAccount.
The company showed that it's spending more on marketing as it launches in new markets, which contributed to a wider loss from operations. It spent $981.5 million in 2021, for example, compared to $495.1 million in 2020.
Total adjusted operating expenses grew to $601 million for the fourth quarter, compared to $526 million in Q3.
DraftKings raised its revenue guidance for 2022 from a range of $1.7 billion to $1.9 billion to a range of $1.85 billion to $2 billion. The company said the projection reflects the launch of mobile sports betting in New York and Louisiana at the start of the year.