DraftKings Q2 Earnings Highlights: Revenue Beat, Company Raises Guidance, Optimistic On More State Sports Betting Launches

Sports betting and online casino company DraftKings Inc DKNG reported second-quarter financial results before the market open Friday. Here are the key highlights for investors.

What Happened: DraftKings reported second-quarter revenue of $466 million, up 57% year-over-year. The revenue total comes in ahead of a Street consensus estimate of $435.1 million, according to data from Benzinga Pro.

The company reported its B2C segment revenue was $455 million in the second quarter, up 68% year-over-year.

DraftKings said the second quarter has a “less favorable sports calendar” compared to the second quarter of 2021.

Monthly unique players were up by 1.5 million in the second quarter, up 30% year-over-year. Average revenue per monthly unique player was $103 in the second quarter, up 30% year-over-year. The company credits strong customer engagement and a shift to iGaming products as reasons for the increased spending.

“DraftKings has an excellent second quarter, exceeding expectations for revenue and Adjusted EBITDA,” DraftKings CEO Jason Robins said.

“Customer engagement remains strong, and we continue to see no perceivable impact from broader macroeconomic pressures.”

The company ended the second quarter with mobile sports betting in 17 states that represent 36% of the U.S. population. The company has iGaming operations live in five states that represent 11% of the U.S. population. DraftKings launched its sport betting and iGaming products in Ontario, Canada in May.

Related Link: DraftKings Q1 Earnings Highlights: Revenue Beat, Raised Guidance, New NFTs And More 

What’s Next: DraftKings is raising its full-year financial targets after reporting second-quarter results.

The company sees full year revenue hitting a range of $2.08 billion to $2.18 billion, up from previous guidance of a range of $2.055 billion to $2.175 billion. The new guidance represents year-over-year growth of 60% to 68% for the full fiscal year.

DraftKings sees adjusted EBITDA coming in a range of a loss of $765 million and a loss of $835 million, improved from previous guidance of a loss of $810 million to a loss of $910 million.

“We are in a strong position from a competitive perspective as we approach the beginning for the NFL season. We remain well capitalized, ready to enter new markets as they become live, and confident in our ability to compete and win with customers,” Robins said.

Additional territories could be added soon with DraftKings calling out Maryland, Puerto Rico, Ohio and Kansas as regions that have authorized mobile sports betting. Together, the territories represent 8% of the U.S. population.

Reignmakers Football, a new NFT powered fantasy football game is launching soon on DraftKings ahead of the 2022 NFL season. The company called the launch a cross of daily fantasy sports and blockchain technology.

DKNG Price Action: DraftKings shares are up 5% to $17.25 on Friday.

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