DraftKings shares tumble after month-to-month customers fall in need of estimates

Shares of DraftKings closed down 28% on Friday after the sports activities betting firm reported slower month-to-month buyer development within the third quarter that fell in need of estimates.

The corporate raised its income steering for the yr, nonetheless, after income for the quarter got here in above Wall Avenue expectations. Its loss for the interval wasn’t as steep as anticipated.

For the quarter ended Sept. 30, DraftKings mentioned its month-to-month distinctive paying clients elevated to 1.6 million, up about 22% from 1.3 million a yr in the past. That was in need of the two million that analysts projected, in response to StreetAccount, and slower than within the earlier two quarters.

DraftKings mentioned the enlargement of its on-line Sportsbook product, launched in September, will assist drive buyer acquisition, engagement and retention.

Following the launch of its on-line Sportsbook in Kansas in September, DraftKings mentioned it’s stay with cell sports activities betting in 18 states, representing about 37% of the U.S. inhabitants. It mentioned it plans to launch in Maryland, Puerto Rico, Ohio and Massachusetts pending licensure and regulatory approvals.

“Our crew continued to drive top-line development by extremely efficient buyer engagement and compelling product and know-how enhancements whereas remaining centered on our path to profitability,” mentioned Jason Robins, DraftKings’ co-founder and CEO.

For the quarter ended Sept. 30, the corporate reported a web lack of about $450 million, or $1 a share, in contrast with a lack of $545 million for a similar interval final yr. Analysts anticipated a lack of $1.04 per share.

Income for the interval rose to $502 million, which was greater than the $437 million Wall Avenue anticipated.

The corporate raised its income steering for 2022 to a spread of $2.16 billion to $2.19 billion, up from its earlier estimate of between $2.08 billion and $2.18 billion.