The difference between success and failure on Wall Street can be microscopic.
Take Draftkings Inc (NASDAQ:DKNG), which saw its shares marked down by almost 6% after-hours following a small Q3 miss after an otherwise spotless report card.
Given the 10% run-up in the stock price before the results, it appears investors decide to use the numbers to bank some profits.
Draftkings' latest print showed third-quarter revenue slightly below analysts’ expectations at $1.10 billion, missing by 1.4%.
However, the fantasy sports and betting company saw a 38.7% year-over-year sales increase and raised its full-year revenue guidance to $6.4 billion, exceeding analyst projections by nearly 25%.
A non-GAAP loss of $0.17 per share was also better than anticipated. The adjusted EBITDA loss also surpassed expectations at $58.5 million.
Gross and operating margins improved compared to last year, though the free cash flow margin decreased to 11.9%. CEO Jason Robins highlighted NFL and college football’s return as growth drivers.
Despite Q3 challenges, the company’s overall growth trajectory and adjusted guidance for the year present a complex outlook for investors.
After hours, the stock was off 5.9% at $36.69.