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In November, DKNG reported a 60% year-over-year increase in revenues to $213 million for its fiscal third quarter. The company reported solid growth in its monthly unique players also. However, its revenues missed consensus estimates by $24.90 million. Jason Park, DraftKings’ Chief Financial Officer, explained the lower-than-expected results as primarily due to unexpected NFL game outcomes. Although its top-line growth has been impressive for the quarter, its bottom line remained weak. DKNG reported widening losses and a net loss per share. DKNG shares tumbled in price on the news.
The company also recently withdrew its bid to acquire betting giant Entain, a deal that would have provided DKNG a foothold in the international gambling market. DKNG shares have slumped 45% in price over the past year and 40.3% year-to-date. The stock has retreated 31.4% over the past month to close its last trading session at $27.81, near its 52-week low of $27.48, which it hit on December 3. The stock is trading way below its 50-day and 200-day moving averages.
