DraftKings (DKNG.US) shares skyrocketed more than 15.0% on Friday after the sports betting company posted better than expected Q4 financial results and raised its outlook for 2023.
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The company reported a loss of 53 cents per share on record revenue of $855 million (80.8% YoY gain), while Wall Street expected a loss of 59 cents per share on revenue of $800 million.
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Monthly unique players increased by 31%, and revenue per user rose 42.0%.
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GAAP operating loss narrowed by 37% versus last year to come at a mere 27% of revenue compared to the previous 77%.
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“In the fourth quarter, we grew revenue by 81% versus last year and delivered Adjusted positive EBITDA in October and for the quarter when adjusting for our launch costs in Maryland and Ohio. Moving into 2023, we will continue to drive revenue growth and focus on expense management to accelerate our Adjusted EBITDA growth.
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We have already taken several actions that resulted in an increase to our revenue guidance and significant improvement in our Adjusted EBITDA guidance,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder.
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Company raised its full-year revenue forecast to $2.85 billion-$3.05 billion from a prior forecast of $2.8 billion-$3.0 billion, the midpoint above the consensus of $2.93 billion as business is getting a boost as more states legalize sports gambling. Also fresh data coming from Super Bowl weekend suggests the gaming industry could see 30% gains this year.
DraftKings (DKNG.US) fell nearly 85.0% from its 2021 high, however at the beginning of 2023 buyers launched an impressive rally. Recent upbeat financial results provided additional fuel for the bulls, however as long as the price sits below key resistance at $23.00, the main sentiment remains bearish. This level is marked with an upper limit of the 1:1 structure and 23.6% Fibonacci retracement of the downward wave started in September 2021. Source: xStation5
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