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DraftKings (NASDAQ:DKNG) stock plunged over 15% at the open Friday following the company’s third-quarter results, which saw its top revenue expectations.
The company reported third quarter revenue of $502 million versus the consensus estimate of $431.02 million, representing a rise of 136% compared to $213 million during the same period last year.
In addition, the company’s B2C segment revenue grew to $493 million, rising 161% versus the three months ended September 30, 2021. The increase was driven by robust customer acquisition and retention, the successful launches of its Sportsbook and iGaming products in additional jurisdictions, atypically high hold rates primarily from NFL wagering, and reduced promotional intensity.
Monthly Unique Payers climbed to 1.6 million average unique paying B2C customers per month, growing 22% compared to the third quarter of 2021.
“DraftKings had a very strong third quarter. Our team continued to drive top-line growth through highly effective customer engagement and compelling product and technology enhancements while remaining focused on our path to profitability,” said Jason Robins, DraftKings’ co-founder, Chief Executive Officer, and Chairman of the Board.
Looking ahead, the company sees fiscal 2022 revenue between $2.16 billion and $2.19 billion, versus the consensus of $2.14 billion. Its revenue guidance was raised from the previous expectation of $2.08 billion to $2.18 billion.
