DraftKings climbs 7% after beating earnings estimates and boosting full-year sales forecast
DraftKingsrose 7% on Friday after the company beat second-quarter earnings estimates and boosted its full-year sales forecast.
- The Boston-based company posted quarterly revenue of $298 million, topping Wall Street's estimates of $242 million.
- It also revised its full-year sales forecast from a range of $1.05 billion-$1.15 billion to $1.21 billion-$1.29 billion.
Shares of DraftKings rose 7% on Friday after the online sports betting company beat its second-quarter earnings estimates and boost its full-year sales forecast.
DraftKings climbed an intraday high of 7% on Friday. The stock was trading 1.31% higher, at $51.14 as of 10:28 a.m. ET.
The company also revised its full-year sales forecast from a range of $1.05 billion-$1.15 billion to $1.21 billion-$1.29 billion, equating to an 88%-100% year-over-year growth and a 14% rise compared to the midpoint of previous guidance.
The increased outlook, according to the company, can be attributed to continued user retention, engagement, and acquisition. It also saw improvements in some key metrics such as its monthly revenue per user, which jumped 26% compared to the same period last year.
The outlook, however, assumes that all sports calendars that have been announced occur as scheduled and that the company's operations continue where they are currently live, the company added.
DraftKings in the past months has been benefitting from a wave of enthusiasm over the country's emerging sports-betting industry.
The company's operations vary per state depending on the service. For instance, DraftKings online sports betting is live in 12 states, while its iGaming arm is live in four.
This year, 25 states have introduced legislation to legalize mobile sports betting, while five states have introduced legislation to expand their existing sports betting frameworks.
Meanwhile, four states have introduced iGaming legislation and three states have introduced online poker legislation.
In July, DraftKings partnered with Autograph, the NFT platform co-founded by NFL quarterback Tom Brady. The platform will officially launch its NFTs this summer.
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