Stephon Gilmore (24), New England Patriots defender, will be training during the New England Patriots practice session in Foxborough, MA, on October 22, 2020.
Barry Chin | Boston Globe | Getty Images
Shares of sports betting company DraftKings rose more than 5% on Friday morning after the company reported fiscal gains in the fourth quarter of 2020, which exceeded revenue expectations and the growth of paying customers.
Here are the key numbers:
- Losses per share: 24 cents, compared to an expected loss of 47 cents, according to a final survey conducted by analysts
- Income: According to Refinitiv, $ 322 million was expected compared to $ 232.6 million
DraftKings said it now has 1.5 million single monthly paying customers starting in the fourth quarter. It is estimated that it will report 1.43 million, according to Factset. The average monthly single-payer income was $ 65 in that quarter, DraftKings said. The company surpassed 1 million users in the third quarter.
The company has also raised its revenue outlook for fiscal year 2021 from a range of $ 750 million to $ 850 million to a range of $ 900 million to $ 1 billion. DraftKings has shown strong user activation due to its 2020 marketing spending, 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 means that all the announced professional and university sports calendars are being made and that we continue to operate in the states where we live today,” the company said.
The growing US sports betting market has also allowed DraftKings to expand its market coverage since it went public through a SPAC last April.
Currently, 20 states, plus Washington, DC, allow online sports betting, up from 19 in the last quarter. Five states have legalized sports betting, but they are not yet operational, and 16 states are working on legislation, increasing from six and two, respectively.
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