DraftKings shares rise after reporting a beat on revenue, more growth in paying customers

DraftKings shares rise after reporting a beat on revenue, more growth in paying customers

New England Patriots cornerback Stephon Gilmore (24) stretches during the New England Patriots practice session in Foxborough, MA on Oct. 22, 2020.

Barry Chin | Boston Globe | Getty Images

Shares of sports betting company DraftKings jumped as much as 8.4% Friday after the company reported fiscal fourth quarter 2020 earnings that beat revenue expectations and growth in paying customers.

The company’s stock closed up nearly 6.5%.

Here are the key numbers:

  • Loss per share: 24 cents, vs. an expected loss of 47 cents, according to a Refinitiv survey of analysts
  • Revenue: $322 million vs. $232.6 million expected, according to Refinitiv

DraftKings said it now 1.5 million monthly unique paying customers as of its fourth quarter. It was estimated to report 1.43 million, according to Factset. Average revenue per monthly unique payer was $65 in the quarter, DraftKings said. The company surpassed 1 million users in its third quarter.

The company also raised its revenue outlook for the fiscal year 2021 from a range of $750 million to $850 million to a range of $900 million to $1 billion. DraftKings pointed to strong user activation due to its 2020 marketing spend, the launch of mobile sports betting and iGaming in Michigan and mobile sports betting in Virginia, and its performance in the fourth quarter.

“This guidance also assumes that all professional and college sports calendars that have been announced come to fruition and that we continue to operate in states in which we are live today,” the company said.

The growing sports-betting market in the U.S. has also allowed DraftKings to expand its market reach since it went public through a SPAC last April.

Currently, 20 states, plus Washington, D.C., allow online sports betting, up from 19 this past quarter. Five states legalized sports wagering but are not yet operational, and 16 states are working on legislation, up from six and two, respectively.

Subscribe to CNBC on YouTube.