DraftKings Q2 Takeaways: User Growth, New Launches, Strong Guidance

Online sports betting operator DraftKings Inc DKNG announced second-quarter financial results Friday. Here are the key takeaways for investors.

What Happened: DraftKings reported second-quarter revenue of $298 million, up 320% year-over-year. The total beat analyst estimates of $242.4 million.

In the second quarter, DraftKings had 1.1 million monthly unique paying users, up 281% year-over-year. The average revenue per monthly unique player was $80, up 26%.

DraftKings ended the quarter with online sports betting live in 12 states covering 25% of the U.S. adult population. The company also had iGaming operations in four states.

DraftKings completed the back-end migration in 11 states with one pending. DraftKings is switching to SBTech to power the technology platform.

Related Link: Genius Sports And DraftKings Announce NFL Sports Betting Partnership: What Investors Should Know

What’s Next: DraftKings raised its full-year revenue guidance to a range of $1.21 billion to $1.29 billion. The total is ahead of previous guidance of $1.05 billion to $1.15 billion. The Street estimate for the full-year revenue is $1.16 billion.

DraftKings highlights user retention, customer engagement and strong customer acquisition as reasons for the upgraded guidance. The guidance from DraftKings assumes no pauses the upcoming fall sports season.

DraftKings highlighted the recent announcement of an NFT marketplace available to its users.

“We believe these expansion opportunities will enable us to further grow our customer base and generate additional revenue through cross-selling to our existing players,” said DraftKings CEO Jason Robins.

DKNG Price Action: DraftKings shares are up 7% to $54.23 in Friday's premarket session.

See also: How to Buy DraftKings, Inc. (DKNG) Stock