DraftKings Inc. said its first-quarter revenue topped analysts’ expectations, and the company boosted its projections for the year.

• The online gambling company reported record revenue of US$312 million in the first quarter, beating estimates of US$239.4 million, and now expects US$1.05 billion to US$1.15 billion in revenue for the full year, up from a previous forecast of US$900 million to US$1 billion.
• DraftKings posted a loss of 87 cents a share, worse than analysts’ estimate of 44 cents, driven by sales and marketing expenses.

Key insights

• The results showed that Americans continued to bet on sports and play games like poker and blackjack on their phones despite the U.S. economy reopening as vaccine distribution ramped up. The guidance assumes that announced professional and college sports calendars come to fruition. “DraftKings is off to an outstanding start in 2021,” Chief Executive Officer Jason Robins said in a statement Friday.
• DraftKings reported a 114 per cent increase in monthly unique paying customers to 1.5 million, topping the average analyst forecast for 1.19 million. The growth was fueled by strength across daily fantasy sports, online sports betting and i-gaming, DraftKings said in the statement.
• Shares of DraftKings and closely watched peer Penn National have stumbled in recent weeks due to bumpy legalization in states like New York and as key seasonal catalysts like the Super Bowl and March Madness are now firmly in the rear-view mirror. Despite strong results, Penn National Gaming Inc. became the latest high-flying stock to tumble in the aftermath of earnings, something DraftKings’ investors will be wary of.

Market reaction

• Boston-based DraftKings rose as much as 3.1 per cent in New York trading before retreating closer to unchanged. The company had shed more than a quarter of its value from a mid-March record prior to Friday’s trading, but the stock still more than doubled in the past year through Thursday.