Draftkings Inc (NASDAQ:DKNG) shares have jumped in after-hours trading as the digital sports entertainment and gaming company posted a fourth-quarter revenue beat and raised its fiscal 2023 guidance.
DraftKings stock had added 6.3% at US$18.94 shortly after the release of its results.
For the three months ended December 31, 2022, the company reported revenue of $855 million, up 81% from revenue of $473 million in the year-ago quarter, and ahead of the Street’s expectation of $801 million.
READ: DraftKings route to profitability will be in spotlight as it reports on 4Q
DraftKings said revenue in the quarter was driven primarily by continued customer retention and monetization in existing states, the successful launches of its Sportsbook and iGaming products in additional jurisdictions, and structural sportsbook hold improvement.
Loss per share came in at $0.53, compared to a loss per share of $0.80 in the year-ago quarter and an expected loss per share of $0.46.
The company said it was raising its fiscal year 2023 revenue guidance from a range of $2.8 billion to $3 billion to a range of $2.85 billion to $3.05 billion, equal to year-over-year growth of 27% to 36%.
It has also improved its fiscal year 2023 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance to a loss of between $350 million and $450 million, compared to its prior guidance of a loss of between $475 million and $575 million.
DraftKings CEO Jason Robins said moving into 2023, the company would continue to drive revenue growth and focus on expense management to accelerate its adjusted EBITDA growth.
“We have already taken several actions that resulted in an increase to our revenue guidance and significant improvement in our adjusted EBITDA guidance,” he said.
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