- DraftKings reported financial results for the fourth quarter of 2022 on Feb. 17, 2023.
- Shares jumped higher after the sports betting company reported a significant increase in sales and a higher outlook for revenue and EBITDA.
- The company recently said that DraftKings was the most downloaded sportsbook app in the U.S. on the day of the Super Bowl.
DraftKings (DKNG) shares skyrocketed after the sports betting firm posted a big spike in sales and boosted its outlook.
DraftKings reported fourth quarter revenue soared 81% to $855 million, beating analysts' estimates. Its loss of $0.53 per share was also better than expected. Average monthly unique payers (MUPs) rose 31% from a year ago to 2.6 million. Average MUP revenue gained 42% to $109.
The company indicated the gains were mainly driven by customer retention and monetization in states where sports gambling had already been legal, the launches of its Sportsbook and iGaming products in more jurisdictions, and gains in the percentage of money made per dollar wagered, or "hold." CFO Jason Park explained the higher hold was primarily because of investments in product innovation.
Earlier this week, the company said that it had the most downloaded sportsbook app in the U.S. during Super Bowl Sunday.
DraftKings raised its full-year revenue guidance to a range of $2.85 billion to $3.05 billion from its previous forecast of $2.8 billion to $3 billion. The company is also revising its expected earnings before interest, taxes, depreciation, and amortization (EBITDA) to a decline of $350 million to $450 million, from a loss of $475 million to $575 million.
Shares of DraftKings jumped 15% on Feb. 17. They're up 80% since the start of the year.