DraftKings Inc. shares dropped more than 2% in the extended session Thursday after the sports-betting platform surprised Wall Street with a quarterly loss and revenue that was merely in line with expectations.
DraftKings
DKNG,
lost $45 million, or 10 cents a share, in the fourth quarter, compared with a loss of $243 million, or 53 cents a share, in the year-ago quarter.
Revenue rose 44% to $1.23 billion in the quarter, thanks to “continued healthy customer engagement, efficient acquisition of new customers,” and an expansion into new markets, the company said.
Analysts polled by FactSet expected the company to report earnings of 8 cents a share on sales of $1.24 billion.
“DraftKings ended 2023 with excellent performance across customer acquisition, retention and engagement as well as structural sportsbook hold percentage despite the worst stretch of sport outcomes we have seen as a public company in the fourth quarter,” co-founder and Chief Executive Jason Robins said in a statement.
The company raised its fiscal 2024 revenue guidance to between $4.65 billion and $4.90 billion, from a previously expected range of $4.50 billion to $4.80 billion announced in November.
The analysts surveyed by FactSet expect fiscal 2024 revenue of $4.7 billion. The updated guidance range would be equal to year-over-year growth of 27% to 34%.
DraftKings also raised its 2024 adjusted Ebitda outlook to between $410 million and $510 million, compared to a prior guidance of between $350 million and $450 million.
DraftKings’ stock ended the regular trading day up 1.3%.
