Sports betting and online gaming company DraftKings Inc (NASDAQ:DKNG) reported second-quarter financial results Thursday after market close.
Here are the key highlights.
• DraftKings stock is facing resistance. Why is DKNG stock trading lower?
DraftKings Q2 Earnings
DraftKings reported second-quarter revenue of $1.44 billion, down 5% year-over-year. The revenue total missed a Street consensus estimate of $1.52 billion, according to data from Benzinga Pro.
The company reported earnings of nine cents per share in the quarter, beating a Street estimate of two cents per share.
Sports consumer volume was $13.1 billion in the quarter, up 15% year-over-year. Growth was attributed to strong customer acquisition and engagement.
Revenue decline was attributed to customer-friendly outcomes and increased promotional reinvestment.
Monthly unique payers (MUPs) were 3.6 million in the quarter, up 9% year-over-year. The average revenue per MUP was $132 in the quarter, down 13% year-over-year.
DraftKings ended the quarter with mobile sports betting in 27 states, Washington D.C. and Puerto Rico, representing around 53% of the U.S. population. For iGaming, DraftKings is live in five states, covering around 11% of the U.S. population.
The company also covers 51% of the Canadian population for sportsbook and iGaming.
What’s Next for DraftKings
DraftKings is maintaining its full-year revenue guidance, which is a range of $6.5 billion to $6.9 billion. The company also maintains a full-year range of Adjusted EBITDA guidance of $700 million to $900 million.
“We delivered a strong second quarter and enter the back half of the year with real momentum, as our core business grew across handle, users, and engagement,” DraftKings CEO Jason Robins said.
The company’s Super App is available nationwide, which includes Predictions.
“Predictions is already growing faster than we anticipated. The similarity of Predictions customer metrics to Sportsbook customer metrics, our advantaged LTV position, and our playbook to innovate on a leading Predictions offering all underpin our confidence that we can win the category this NFL season and beyond.”
DraftKings Stock Price Action
DraftKings stock is down 1.2% to $21.90 in after-hours trading Thursday versus a 52-week trading range of $20.46 to $48.78.
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