New England Patriots cornerback Stephon Gilmore, No. 24, stretches during the New England Patriots’ practice in Foxborough, Mass., on Oct. 22, 2020.
Barry Chin | Boston Sphere | Getty Images
Sports betting company DesignKings announced quarterly revenue Thursday that exceeded analyst expectations as the company rises to the top of the highly competitive online gambling industry.
Shares of DraftKings rose about 7% in extended trading Thursday, after rising 6% in the regular session.
Here’s what DraftKings reported for the third quarter ending September 30:
- Loss per share: 61 cents
- Gain: $790 million versus $706.8 million expected, according to consensus estimates from LSEG, formerly known as Refinitiv
It was not immediately clear whether the company’s reported loss per share was comparable to the 69 cents loss expected by analysts, LSEG said.
DraftKings reported a net loss of $283.1 million, or 61 cents per share, compared with a loss of $450.5 million, or $1 per share, in the same period a year earlier.
Third-quarter revenue rose 57% to $790 million.
The company said growth was driven by expansion into new jurisdictions, which led to an increase in new customers. Meanwhile, existing customers were more engaged and spent more money on the platform.
“Our fantastic third quarter results demonstrate the positive impact of our product and technology investments, as well as the excellent preparation and execution across our organization,” said CEO Jason Robins. “Our new and differentiated features and functionality have created an exceptional user experience that supports the engagement of our mobile sports betting and iGaming customers.”
DraftKings reported 2.3 million unique monthly payers in the third quarter, representing a 40% increase year over year. Average revenue per monthly unique payer rose 14% to $114, the company added.
DraftKings also expanded into Kentucky and plans additional launches in Maine and North Carolina, pending regulatory approval. Currently, the company is live with mobile sports betting in 22 states and live with iGaming in five states. It also has a sports betting and iGaming presence in Ontario, Canada.
DraftKings overtook rival sportsbook FanDuel in market share for the first time last month, becoming the leader in the U.S. online gambling market, according to market research firm Eilers & Krejcik Gaming.
DraftKings accounted for about 31% of online gambling revenue in the third quarter through August 23, while FanDuel’s market share fell to 30%, according to Eilers & Krejcik.
For the full fiscal year 2023, DraftKings has raised its revenue guidance to a range of $3.67 billion to $3.72 billion, up from a previously indicated range of $3.46 billion to $3.54 billion.
For fiscal 2024, DraftKings expects revenue of $4.50 billion to $4.80 billion.
Don’t miss these stories from CNBC PRO: