DraftKings Q1 results: ‘we haven’t seen any impact from inflation’

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DraftKings Q1 results: ‘we haven’t seen any impact from inflation’

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By:

Wajeeh Khan

on
May 6, 2022

DraftKings Inc reported solid Q1 and raised guidance for the full year.

CEO Robbins discussed the results on CNBC’s “Squawk on the Street”.

Shares of the sports betting company are down about 8.0% on Friday.

DraftKings Inc (NASDAQ: DKNG) reported better-than-expected revenue for its fiscal first quarter on Friday. Shares still slid 8.0% as increased expense made it lose more money on a year-over-year basis.

Notable figures in DraftKings Q1 earnings report

Lost $467.7 million in Q1 versus the year-ago figure of $346.3 million.Per-share loss of $1.14 was worse than 87 cents a share last year.Adjusted per-share loss stood at 74 cents in the recent financial quarter.Revenue jumped 34% to $417 million, as per the earnings press release.Consensus was for adjusted per-share loss of $1.09 on $412 million in revenue.Ended the quarter with 2 million monthly unique payers, up 29% YoY.$67 of average revenue per payer was 11% higher than the same quarter last year.

DraftKings cited strong customer acquisition, engagement, and retention for top-line growth in fiscal Q1.


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Future outlook and CEO’s interview on CNBC

Also on Friday, DraftKings raised its guidance for full-year revenue to $1.93 billion – $2.03 billion on up to $840 million in adjusted EBITDA loss. On CNBC’s “Squawk on the Street”, CEO Jason Robbins said:

We haven’t seen any impact on demand due to inflation. We found a number of cost efficiencies and overall, the macroeconomic environment could help sports betting gain more momentum.

The stock is now down 50% for the year. DraftKing’s 2022 outlook doesn’t factor in the Golden Nugget acquisition and the upcoming launch in Ontario, Canada. The chief executive added:

Golden Nugget will add a ton of synergy that’ll eventually make its way to the bottom-line. Ontario will meaningful contribution to profit, and both will grow top-line in this year and beyond.

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