Earnings

DraftKings shares fall 21% on 2022 outlook

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Shares of DraftKings fell more than 20% Friday morning after it posted fourth-quarter earnings that beat analyst estimates for the quarter but revealed the company expects a greater adjusted loss for 2022 than analysts had projected.

Here’s what the company reported:

  • Loss per share: 35 cents, ex-items vs 81 cents estimated, according to a Refinitiv survey of analysts
  • Revenue: $473 million vs $445 million estimated, according to Refinitiv

But DraftKings said it expected an adjusted EBITDA loss for 2022 between $825 million and $925 million, much higher than the estimated adjusted EBITDA loss of $572.7 million, according to StreetAccount.

The company showed that it’s spending more on marketing as it launches in new markets, which contributed to a wider loss from operations. It spent $981.5 million in 2021, for example, compared to $495.1 million in 2020.

Total adjusted operating expenses grew to $601 million for the fourth quarter, compared to $526 million in Q3.

DraftKings raised its revenue guidance for 2022 from a range of $1.7 billion to $1.9 billion to a range of $1.85 billion to $2 billion. The company said the projection reflects the launch of mobile sports betting in New York and Louisiana at the start of the year.

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