DraftKings CEO Jason Robins weighed in on the fall in shares of the fantasy sports competition and sports betting company on Friday after announcing its third-quarter results.
The company, which went public in 2020 at $20 per share, said it generated $501.9 million in revenue in the third quarter, up 136% from the same period in 2021. Its quarterly net loss s is reduced to $450.5 million, its loss per share coming from $1.
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Despite its earnings and losses exceeding analysts’ estimates, DraftKings stock closed down 28% at $11.31 per share.
Robins, appearing on “Varney & Co.” On Friday morning, he attributed it to “probably a bit of a lag between our guidance for 2023, which included a number of new states, versus a consensus of many analysts that didn’t include new states.” He called it “a bit of apples and oranges”.
In its predictions for the rest of the year and for 2023, DraftKings factored in expected launches in Maryland, Ohio, Massachusetts and Puerto Rico, all four of which recently allowed online sports betting.
Ashley Webster of FOX Business asked Robins about his monthly unique payers for the quarter, which Webster said was below estimates. For the quarter, DraftKings reported 1.6 million average monthly unique payers, marking a 22% year-over-year jump.
“It’s a bit of a tough comparison,” the CEO of DraftKings said. “One of the reasons we don’t look at it is exactly what happened this year. Last year, which of course was the baseline, the NBA bled in the third quarter; this year it’s not, which has made a big difference.”
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“We talked about September on the earnings call, which was north of 27% year-over-year growth, which I think would have gotten it a little closer to what Wall thought. Street,” he continued. “It was really the difference between the NBA in 2021 in the third quarter and the season ending a little earlier this year.”
Robins went on to say that adding the three states and Puerto Rico would “bring the total” to 45% U.S. population penetration.
“We just have to keep executing, and I think if we keep building a record – we’ve only been public a little over two years – constantly beating expectations and constantly delivering on the promises that we make, that everything the rest will work out,” he said.
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For its fiscal 2022 outlook, DraftKings increased its projected revenue to between $2.16 billion and $2.19 billion and reduced its adjusted EBITDA loss to between $765 million and $835 million. EBITDA is earnings before interest, tax, depreciation and amortization, a key measure of profit.
It expects revenue of $2.8 billion to $3 billion for 2023, the company said.
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