DraftKings’ Second Quarter Earnings Posted 297% Growth

Daily fantasy, sports betting and gaming technology operator DraftKings reported today its second-quarter financial results, posting revenue of $298 million for the three months ended June 30, 2021.

Nearly 300% Revenue Growth

The quarterly revenue reading represents a 320% increase to the $71 million DraftKings generated in the respective quarter of 2020. However, after giving pro forma effect of the acquisition of SBTech, which took place via a reverse three-way merger with the SPAC Diamond Eagle Acquisition Corp and completed during Q2 2020, revenue growth is 297%.

DraftKings outlined growth was driven by strong customer retention and acquisition, with the number of monthly unique players for its B2C segment, posting a 281% increase compared to the second quarter of 2020, totaling 1.1 million per month in Q2 2021.

Besides the strong growth in player retention and acquisition across daily fantasy sport, online sports betting and iGaming verticals, DraftKings accounts for the adverse impact of the coronavirus in the second quarter of 2020, which halted most of the traditional sports as a factor behind the increase in the numbers.

DraftKings achieved in Q2 2021 average revenue per monthly unique player of $80, an increase of 26% on the reading for the second quarter in 2020, due to the return to a more normal sports schedule which boosted customer engagement in DFS and sportsbook verticals. Additionally, the launch of sportsbook and iGaming products in new states impacted the company’s product mix and spurred cross-selling opportunities.

Raising FY2021 Guidance

Based on current trends, DraftKings is raising its revenue guidance for fiscal 2021 from the previous range of $1.05 billion to $1.15 billion, to $1.21 billion to $1.29 billion now, expecting growth between 88% and 100% year-over-year and 14% increase on its previous guidance’s midpoint. DraftKings noted, though, that the new guidance works on the assumption that all professional and college sports calendars continue as scheduled and the company’s operations in all states it is currently live are not interrupted.

Currently live with sports betting in 12 states, 25% of the US population, and with iGaming in four states, 10% of the US population, DraftKings expects to continue to expand based on legislation introduced by state legislatures since the beginning of 2021.

State legislatures of Arizona, Connecticut, Louisiana, Maryland, New York and Wyoming, six states where DraftKings has market access deals in place, already authorized mobile sports betting. Connecticut also legalized iGaming, while Arizona authorized fantasy sport.

Pending licensure and regulatory approval, DraftKings is preparing to launch in the Great Canyon State and expand its presence in DFS to 44 states. Outside of the reported quarter, DraftKings launched DFS in approved parishes in Louisiana.

Leave a Reply

Your email address will not be published. Required fields are marked *