DraftKings Revises Revenue Guidance After Strong First Quarter
Pavlo Gonchar/SOPA Images/LightRocket via Getty Images. Pictured: DraftKings logo.
DraftKings on Friday reported that it brought in $312 million in revenue in the first three months of 2021, a 175% increase compared to the what the combined companies of DraftKings and SB Tech did for the same time period last year.
Monthly unique players rose 114%, average revenue per bettor was $61, growing 48%, and DraftKings CEO Jason Robins, on Friday morning’s earnings call, said the sportsbook’s hold percentage for the three month period was greater than expected.
Thanks to the numbers, the company raised its fiscal year 2021 guidance from $900 million to $1 billion to a range of $1.05 billion to $1.15 billion. The company doesn’t expect to be profitable in 2021, mostly due to sales and marketing expenses, DraftKings CFO Jason Park reiterated on the call.
DraftKings has its online mobile betting product operational in 12 states representing 25% of the United States. DraftKings CEO Jason Robins said the two newest states — Michigan and Virginia — outperformed current market leader New Jersey’s numbers from the same period in 2019 by 3% and 7% respectively.
Robins noted that New Jersey bettors bet 30% more on the 2021 Masters versus the 2020 Masters, held just five months before and March Madness handle in the Garden State increased 181% versus the tournament in 2019.
Aside from announcing media deals with Dan Le Batard and the acquisition of VSiN, DraftKings announced that they would begin to introduce social features that will allow users to see what their friends are betting.
Pre-market trading on DraftKings stock was up 3.7% as of 9 a.m. ET.