DraftKings Inc. (NASDAQ: DKNG | DKNG Price Prediction) reported its third-quarter financial results on Friday before the opening bell. The firm said that it had a net loss of $0.57 per share on $133 million in revenue, versus consensus estimates that called for a net loss of $0.61 per share and $131.75 million in revenue.
Monthly unique payers (MUPs) for DraftKing’s B2C segment increased by 64% year over year. On average, more than a million monthly unique paying customers engaged with DraftKings each month during the third quarter.
Overall, the improvement in MUPs reflected continued growth of the core Daily Fantasy Sports product, spurred by ongoing product innovation, strong engagement from existing Sportsbook and iGaming players, and expansion of our player base in several new states.
Average revenue per MUP was $34 due to limited sports activity in July and atypical hold rates from NFL wagering through the third week of the season, which was offset partially by increased engagement with the iGaming product offering.
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The firm raised its fiscal year 2020 pro forma revenue guidance to a range of $540 million to $560 million from a range of $500 million to $540 million. DraftKings also is introducing 2021 revenue guidance of $750 million to $850 million. Consensus estimates call for a net loss of $1.59 per share and $528.51 million in revenue for the current fiscal year. Analysts see a net loss of $1.04 per share and $772.64 million in revenue for fiscal 2021.
DraftKings stock traded up about 6.5% on Friday to $43.93, in a 52-week range of $10.04 to $64.19. The consensus price target is $58.11.
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