Earnings

DraftKings shares fall 21% on 2022 outlook

In this article

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.

Subscribe to CNBC on YouTube.

WATCH: DraftKings and the push to legalize sports betting

Products You May Like

Articles You May Like

Millennials, bailing on stocks and other investments, might not find bonds so boring anymore 
Ken Griffin says Fed has not done enough, must continue on its path to reset inflation expectations
Home purchase cancellations are above 15% for the second straight month. It’s important to know the financial repercussions
Stocks making the biggest moves midday: Wynn Resorts, Planet Fitness, AMC, Lyft and more
Boeing to pay $200 million to settle charges over misleading investors after 737 Max crashes