DraftKings shares jump over 5% on raised full-year guidance

DraftKings Inc (NASDAQ: DKNG) reported its financial results for the second quarter on Friday that beat Wall Street estimates. Shares of the company were about 5% up in premarket trading.

Second-quarter financial performance

DraftKings’ per-share loss stood at 76 cents in the quarter that concluded on 30^th June versus the year-ago figure of $1.80 of loss per share. On an adjusted basis, it lost 26 cents per share in Q2. The sports betting company generated $297.6 million of revenue – an increase from $70.9 million last year.

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In comparison, Wall Street consensus was for $240.8 million of revenue and 61 cents of EPS. Earlier this year in June, billionaire investor Cathie Wood bought $42 million worth of DKNG stock.

Full-year guidance and other notable figures

For the full financial year, DraftKings now expects a higher $1.21 billion to $1.29 billion of revenue. In its previous guidance, it had forecast up to $1.15 billion of full-year revenue instead.

Other notable figures in the earnings report include a massive 281% annualised growth in monthly unique payers. At $80, the business-to-consumer segment saw a 26% year over year increase in average revenue per monthly unique payer.

Also on Friday, DraftKings disclosed an SEC investigation related to recent allegations from the short seller Hindenburg Research.  

How to buy DraftKings (DKNG) stock now

If you are bullish on DraftKings stock following the earnings release and would like to buy shares here is a quick guide on how you can buy DraftKings stock now.

Despite the strong gains Friday morning, DraftKings stock is still down around 15% over the past six months and around $20 per share lower from its 52-week high of $74.38. Buying DKNG stock now might be a solid investment choice given the company’s recent momentum and sustainable growth ahead.

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CEO Jason Robins’ remarks

Commenting on the financial update on Friday, CEO Jason Robins said:

“DraftKings had a particularly strong second quarter of 2021, maintaining our impressive financial performance while also advancing into new areas, such as media and NFTs. We believe these expansion opportunities will enable us to further grow our customer base and generate additional revenues through cross-selling to our existing players. We also are excited that the migration to our proprietary in-house online sports betting technology is substantially complete, with only one state remaining pending approval.”