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DraftKings hiked full-year revenue and earnings guidance after a strong second quarter.
Scott Eisen/Getty Images for DraftKings
DraftKings
is capitalizing on the U.S. sports-betting boom, and investors like what they see.
The sports-betting company’s stock surged 14% ahead of the open Friday after revenue beat expectations in the second quarter.
DraftKings
(ticker: DKNG) also hiked its full-year revenue and earnings guidance.
Chief Financial Officer Jason Park said the company’s unit economics were “outstanding” as states that have allowed sports betting for longer generate cash for it to fund launches in new states.
As new states continue to legalize sports betting, DraftKings looks well-placed to utilize those economics and keep growing.
Kentucky, North Carolina, Puerto Rico and Vermont, which the company said represented 6% of the U.S. population, have all authorized mobile sports betting in recent months. DraftKings is set to launch a Sportsbook in Kentucky next month, while it has started the process of securing approval to operate in the three other areas.
DraftKings reported revenue of $875 million in the second quarter, an 88% jump from the previous year and above expectations of $765 million, according to FactSet data. Adjusted earnings of 14 cents a share also beat estimates of loss of 12 cents.
DraftKings raised its full-year revenue guidance to a range of $3.46 billion to $3.54 billion, or growth of 54% to 58%, from a previous forecast of between $3.14 billion and $3.24 billion.
It also sees a smaller Ebitda loss of $190 million to $220 million, having previously expected a loss of between $290 million and $340 million.
It’s been a stellar year so far for the sports betting company, with the stock up 163% as of Thursday’s close.
Write to Callum Keown at callum.keown@barrons.com