DraftKings Reports Solid 1st Quarter Results; Revenue Reaches $312 Million
DraftKings recently announced its first-quarter earnings report, and the revenue for the first three months in 2021 was much better than expected. Of course, the company is also continuing to take on some massive losses, but there is hope that the gap will be closed in the coming months.
The first-quarter revenue for DraftKings was $312 million, which was a massive jump from the $89 million reported for the first three months in 2020. Initial projections had the revenue pegged at $230-$240 million, but there were some factors that helped the company exceed expectations.
The state of Illinois helped DraftKings post these impressive numbers as Governor J.B. Pritzker allowed for remote registration that helped the company bring in new customers. DraftKings also had a higher hold percentage than normal, but that could change in the next quarter.
Illinois now has in-person registration back in place, but DraftKings will be able to attract new customers in other states. DraftKings CEO Jason Robins spoke about the overall report for the first quarter, and his tone was a positive one.
Despite a great start in 2021, Robins did not want that the company continues to take on hundreds of millions of dollars in losses each year.
Fans Will See New Features
Customers at DraftKings will soon be able to interact with others on the mobile app, something that has been requested over the past few years. Robins announced that the company would be unveiling a social engagement feature on both the sportsbook and DFS platforms.
There are still some issues that need to be worked out with this feature, but customers will soon be able to see what their friends are betting on. On the DFS portion of the site, customers can set up private leagues and can then chat with friends.
New 2021 Forecast Announced
With the success of the first quarter, revenue projections for the rest of 2021 were raised. Initial projections had the company posting a revenue of $900 million- $1 billion for the year, but that has now been raised to $1.05-$1.15 billion.
The company posted a net loss of $346 million for the first quarter, which equals 36 cents a share. The original projection was a loss of 42 cents per share, so the company is trending in the right direction on that front as well.
DraftKings Supporting Sports Betting Bills
DraftKings has been extremely aggressive in launching a sportsbook app in states with legal sports betting. The company has also spent the past few months supporting lawmakers in states that are attempting to legalize this industry.
Maryland could be one of the next states to launch sports betting, and DraftKings would have a strong presence in that state. The company has also helped boost support for the industry in Ohio, and a new law is expected to be approved by the end of June.
Michigan and Virginia recently launched online sports betting in January, and it hasn’t taken long for the company to become one of the top sports betting options in each state.