Reason why price has been trading steadily vs the low of the day and pre-market. They lifted their midpoint full year revenue guidance. Support level 42.21 is still intact at the moment.
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DraftKings Lifts Midpoint of Full-Year Revenue Guidance Following Wider Loss But Higher Revenue in Third Quarter
2021-11-05 11:57:17 AM ET (MT Newswires)
11:57 AM EDT, 11/05/2021 (MT Newswires) -- DraftKings (DKNG) raised the midpoint of its full-year revenue guidance after the result climbed in the most recent quarter as the sports betting company saw strong customer acquisition and engagement, although it reported a wider loss in the period.
The company now sees 2021 revenue in a range of $1.24 billion to $1.28 billion from $1.21 billion to $1.29 billion, raising the midpoint of guidance to $1.26 billion. Analysts polled by Capital IQ are expecting $1.29 billion. For 2022, the company projects revenue of $1.7 billion to $1.9 billion, straddling the Wall Street view of $1.81 billion.
For the three months through September, DraftKings reported an adjusted loss of $0.82 per share, wider than a loss of $0.57 a year ago. Revenue increased to $212.8 million from $132.8 million.
"Fundamental user acquisition, retention and engagement trends in the third quarter were outstanding across all of our online gaming products," said Chief Financial Officer Jason Park in a statement.
The company's B2C, or business-to-customer segment, posted a revenue increase of 82% to $189 million driven by strong growth in player acquisition and retention, as well as player engagement and monetization, Park said on a conference call with analysts, according to a Capital IQ transcript.
The segment's monthly unique payers, or MUP, grew 31% to 1.3 million and the average revenue per MUP rose 38% to $47 during the quarter, without contribution from major sports such as the NBA and NHL.
B2C's revenue growth, however, was partially offset by the company's business to business, or B2B, revenue decline of 19% to $24 million due to the impact of the company's terminated Asia reseller agreement, Park said on the call.
DraftKings said it continues to expand its business footprint as it launched mobile sports betting in Wyoming, Arizona and Connecticut, as well as iGaming in Connecticut.
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