Why DraftKings Shares Are Plummeting Today Premarket

DraftKings Inc DKNG reported fourth-quarter FY21 sales growth of 47% year-on-year, to $473.3 million, beating the analyst consensus of $445.18 million.

• "We grew revenue 47% year-over-year to $473 million in the fourth quarter despite lower-than-expected hold in October primarily due to NFL game outcomes," said CFO Jason Park.
• Monthly Unique Payers for the B2C segment increased by 32%, and Average Revenue Per Monthly Unique Payer grew by 19% to $77.
• General and administrative expenses rose 39% Y/Y to $240.8 million. The operating loss widened to $(368.7) million.
• GAAP EPS loss was $(0.80). On an adjusted basis, EPS loss was $(0.35).
• The adjusted EBITDA loss for the quarter was $(127.9) million.
• With launches in New York and Louisiana, DraftKings is now live with mobile sports betting in 17 states, representing about 36% of the U.S. population.
• Related: DraftKings To Launch Mobile Sportsbook In Louisiana
• Outlook: DraftKings raised FY22 sales outlook to $1.85 billion - $2 billion (prior view $1.7 billion - $1.9 billion), versus the consensus of $1.9 billion. 
• The company introduced and expected an FY22 adjusted EBITDA loss of $(925) million - $(825) million. The company reported an adjusted EBITDA loss of $(676.1) million in FY21.
• DraftKings expects to be Contribution Profit positive for FY22 across all states where it is currently live, including New York and Louisiana.
• The company would expect to generate positive Adjusted EBITDA in the fourth quarter of 2023 if legalization trends remain consistent with prior years.
• Price Action: DKNG shares are trading lower by 17.20% at $18.27 in premarket on the last check Friday.