DraftKings recently released its fourth quarter 2020 results, with revenue of $ 322 million (representing a 146% increase compared to $ 131 million in the same period in 2019) and a loss of 24 cents per share .
Comparisons with the same time in 2019 are still inaccurate, as the company went public last April. The group claims that sales grew 98%. However, Wall Street analysts had expected a loss of 47 cents per share.
In addition, the company reported 1.5 million monthly single paying customers over the period that ended on December 31, which represents a growth of 44% compared to the same period of the previous year.
As such, DraftKings has improved its revenue forecast for 2021, as it now expects to raise between $ 900 to $ 1 billion, which corresponds to an increase in previous projections that ranged from $ 750 to $ 850 million.
This is equivalent to an annual growth of 40% to 50% and an increase of 19% compared to the average presented in the company’s last forecast.
Sports seasons without interruption helped to leverage DraftKings’ projections
The rise in business projection for the year occurs because university and professional sports seasons are happening as expected. Although the public’s presence remains restricted, the traditional college basketball event “March Madness” and the NBA and NHL playoffs are highlighted as the main highlights of the sports calendar.
In an official statement, DraftKings CEO Jason Robins noted that the adjustment in revenue forecast was due to “our expectation of continued growth, the superior performance of our core business and the new states in which our products have been launched recently, and that had not been included in the previous forecast “.
