Draftkings Inc (NASDAQ:DKNG) announced that its fourth-quarter 2021 revenue increased by 47% year over year to $473 million, which exceeded the company’s previous guidance by 8%.
The company attributed the stronger-than-expected results to “excellent” player retention, acquisition and cross-selling in the quarter, as monthly unique payers increased by 32% and average revenue per monthly unique payer grew by 19%.
“DraftKings’ strong fourth quarter performance exceeded our expectations on the top and bottom line,” company CEO Jason Robins said in a statement.
“Our excellent quarter capped off a year in which five of our states were Contribution Profit positive, further demonstrating the effectiveness of our state playbook and supporting our positive view of the industry’s TAM (total addressable market),” Robins added.
DraftKings also noted that it is well positioned to grow its market share in 2022, as well as further optimize its user experience and continue to strengthen its multi-product suite of offerings.
The company added that it is increasing the midpoint of its 2022 revenue guidance to $1.93 billion given new state launches and strong underlying performance trends, as well as introducing guidance for Adjusted EBITDA of negative $825 million to $925 million.
DraftKings, though, projected a wider-than-expected adjusted loss for the full year as costs continue to rise, sending its share price down as much as 13% in pre-market New York trading.
Boston-based Draftkings Inc (NASDAQ:DKNG) is a digital sports entertainment and gaming company created to fuel the competitive spirit of sports fans with products that range across daily fantasy, regulated gaming and digital media.
The company is a multi-channel provider of sports betting and gaming technologies, powering sports and gaming entertainment for operators in 17 countries.
Contact Sean at sean@proactiveinvestors.com