Shares of DraftKings (NASDAQ: DKNG) popped 9.8% on Friday after the daily fantasy sports and online gambling leader reported its second-quarter results before the market opened and lifted its 2022 financial forecast.
DraftKings’ revenue surged 57% year over year to $466 million in the second quarter. The company’s entrance into Ontario, Canada’s online sportsbook and casino markets in May helped to bolster its growth. The recent acquisition of Golden Nugget Online Gaming also contributed to the gains.
People continue to gravitate to DraftKings’ gambling platforms despite the challenges wrought by inflation and other economic headwinds. Its average monthly unique paying business-to-consumer customers jumped by 30% to 1.5 million. Those customers also placed more wagers, which drove a 30% increase in average revenue per payer to $103.
“Customer engagement remains strong, and we continue to see no perceivable impact from broader macroeconomic pressures,” CEO Jason Robins said in a press release.
Better still, DraftKings’ losses are shrinking. It generated a net loss of $217 million, or $0.50 per share, compared to a loss of $305 million, or $0.76 per share, in the prior-year quarter. That was far better than Wall Street expected. Analysts had projected a loss of $0.75 per share.
Management also boosted its full-year guidance, raising the midpoint of its revenue forecast from $2.115 billion to $2.130 billion. That would amount to year-over-year growth of 64%. It also improved its estimate for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by $60 million to a loss of roughly $800 million.
“Due to our ongoing investments in core online gaming technologies, we are in a strong position from a competitive perspective as we approach the beginning of the NFL season,” Robins said. “We remain well capitalized, ready to enter new markets as they become live, and confident in our ability to compete and win with customers.”