DraftKings posts surge in revenue, hikes full-year sales guidance

By Jon Swartz

DraftKings Inc. rang up a huge spike in revenue and raised its full-year sales guidance on Thursday, sending its stock up nearly 2% in extended trading.

"We are raising the midpoint of our fiscal year 2024 revenue guidance ... as a result of our excellent first-quarter results and improved outlook on customer acquisition and engagement for the rest of 2024," DraftKings Chief Financial Officer Alan Ellingson said in a statement announcing the results.

The fantasy-sports-contest and sports-betting company (DKNG) reported a fiscal first-quarter net loss of $142.6 million, or 30 cents a share, compared with a net loss of $397.1 million, or 87 cents a share, in the same quarter a year ago. Adjusted earnings were a loss of 3 cents a share.

Revenue soared 53% to $1.17 billion from $769.6 million in the year-ago quarter.

Analysts surveyed by FactSet had expected on average a net loss of 29 cents a share on revenue of $1.12 billion.

DraftKings raised its fiscal 2024 revenue guidance to a range of $4.8 billion to $5 billion, up from a range of $4.65 billion to $4.9 billion. FactSet analysts are forecasting on average $4.82 billion.

Shares of DraftKings have increased 22% this year through Thursday, while the broader S&P 500 index SPX is up 6%.

-Jon Swartz

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05-02-24 2024ET

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