DraftKings Again Raises Revenue Outlook, Q2 EBITDA Beat Excites Analysts

DraftKings (NASDAQ:DKNG) again increased its full-year revenue outlook today following a strong localise of second-quarter results, which the company delivered earlier.

The sportsbook operator at present expects 2021 sales of $1.21 1000000000000 to $1.29 billion, upward from the direction of $1.05 1000000000000 to $1.15 billion issued in May. That young outlook was helped by a strong showing inwards the April through June period inward which DraftKings generated revenue of $298 million. That flap Wall Street estimates past $50.78 million, and represents a 320 percent year-over-year increase.

While the gaming companionship lost 76 cents per portion out — 18 cents worse than analysts expected — familiarised earnings before interest, taxes, wear and tear and amortization (EBITDA) of -$95 one thousand thousand was amend than the deprivation of $115 meg that was the consensus estimate.

Average revenue per monthly unique player (MUP) was $80 inward the June quarter, unspoilt for a 26 percent step-up from the same stop finally year.

The quarter continues to march meliorate than expected executing and broadening areas of development for the future,” said Jefferies psychoanalyst David Katz inwards a musical note to clients today.

Shares of DraftKings are higher by almost ii percent, but the stockpile was up as much as heptad percent inwards pre-market trading on the support of the second-quarter results.

Important Tea Leaves in DraftKings Revenue Guidance

While DraftKings has delivered simply pentad earnings reports since becoming a freestanding public troupe inward April 2020, i thing analysts and investors experience gotten used to is the operator losing money and estimating a long time dividing line to profitability.

The Boston-based company may get taken steps toward allaying profitability concerns with the aforementioned EBITDA scramble and warm user retention – a sign on that marketing spending is paying off.

The raised sales direction “reflects warm carrying out in the s billet of 2021 and continued user retention, engagement, and acquisition due to the effectualness of our marketing spend,” said the companionship inwards a statement.

As Macquarie psychoanalyst Republic of Chad Beynon notes, DraftKings unexampled sales outlook, at the midpoint of the range, is 14 percent supra the prior forecast and follows a 16 percent growth from the first off billet and a 19 percent knock inwards the cobbler's last leash months of 2020. He rates the caudex “outperform” with a $72 damage target. That implies upside of more or less 44 percent from the Aug. 5 close.

Legislative, Sports Calendars Cooperative

Following an unusual sports schedule last-place year, the resultant of shutdowns and suspensions forced past the coronavirus pandemic, the house servant sports slating is normalizing. DraftKings acknowledges its revenue projection depends on no more unforeseen disruptions to the sports schedule.

On the country front, the manipulator is unrecorded with nomadic sports betting inward a dozen states natural covering a canton of the US universe piece it has its cyberspace gambling casino offering inwards iv states representing 10 percent of the population.

There’s a chance DraftKings 2021 revenue could upper side estimates, because several states where it has online sports betting (OSB) agreements are potential to go live in the coming months.

“Six of the states where DKNG has marketplace approach agreements — Arizona, Connecticut, Louisiana, Maryland, New York, WY — have already authorized OSB this year. These states correspond 13% of the US population, and work the percent of the universe with legalized OSB to 39%. In addition, Connecticut River has authorized iGaming,” said Macquarie’s Beynon.

Of that group, Grand Canyon State and WY are likely to live operational for the 2021 NFL season, with LA and Maryland also angling for autumn launches.

This news is curated to you by the 918Kiss Singapore.