Shares of sports betting company DraftKings rose 8.4% Friday after it reported better-than-expected fiscal 2020 fourth-quarter revenue and customer growth, and the company’s stock closed 6.5% higher.
According to fourth-quarter results, the company lost 24 cents per share, compared to analyst expectations of 47 cents per share, and recorded revenue of $322 million, easily exceeding analysts’ expectations, which reported revenue of only 232.6 million.
DraftKings added that its customer base who pays bets every month, which broke the one million mark in the third quarter, has reached 1.5 million customers as of the last fourth quarter, knowing that the number was expected to reach only 1.43 million,
The company’s average revenue reached $65 from each active customer per month, and in its report, it announced that it had raised its revenue prediction for the fiscal year 2021 to a range of $900 million to $1 billion, down from its previous forecast of $750-850 million.
DraftKings noted that the strong growth in customer numbers was driven by its ad spend in 2020, the launch of its online sports betting service in Michigan and Virginia and the iGaming project in Michigan, and was also helped by the company’s outstanding performance in the fourth quarter.
The past year has been a boom year for the company, as the growing US sports betting market has allowed DraftKings to gain greater access to the market, especially after it was introduced to the market last April.
It is worth noting that there are currently 20 US states, in addition to Washington, that allow online sports betting, up from 19 states in the last quarter, and there are currently 5 states that allow sports betting, but this decision has not yet entered into force, and there are about 16 states that allow such betting, with only two states working on it in the last quarter.