DraftKings Releases Disappointing Q3 Results, Stock Falls
Key Takeaways
- DraftKings reported a revenue miss in its third quarter.
- Monthly Unique Payers (MUPs) fell short of analyst estimates.
- The company's stock price dropped significantly in after-hours trading.
Third-Quarter Results
DraftKings reported a revenue of $502 million for the third quarter of 2023, falling short of analyst expectations of $522 million.
The company's net loss widened to $346 million, compared to a loss of $84 million in the same period last year.
DraftKings' MUPs grew by 32% year-over-year to 15.5 million, but fell short of analyst estimates of 16.2 million.
Stock Performance
Following the release of its financial results, DraftKings' stock dropped by over 15% in after-hours trading.
The company's stock has been on a downward trend in recent months, declining by over 60% from its 52-week high.
Analysts attributed the stock decline to the revenue miss and concerns about the company's ability to maintain its growth rate.
Fourth-Quarter Outlook
DraftKings provided a cautious outlook for the fourth quarter, projecting revenue between $535 million and $575 million.
The company also expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the range of $55 million to $75 million.
Analysts remain mixed on DraftKings' future prospects, with some expressing concerns about its ability to sustain growth in the increasingly competitive online gambling market.
Additional Resources
- DraftKings Investor Relations
- CNBC: DraftKings reports Q3 earnings miss, stock falls
- Bloomberg: DraftKings Revenue Misses Estimates as Monthly Players Fall Short
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