DraftKings Inc. (NASDAQ: DKNG) released its FY22 Q1 earnings results on Friday before the market opened. The online gaming platform reported $417M of revenue in Q1, driven by strong customer acquisition, increased customer engagement, and healthy customer retention.
In the first- quarter, the company reported 2.0 million average monthly unique payers in contrast to 1.5 million in 2021.
The DKNG stock gained 9% following the earnings.
DraftKings announced the completion of its acquisition of Golden Nugget Online Gaming, Inc. a day before reporting earnings.
Reported vs. Estimated
EPS – $1.14 vs. $1.24 expected
Revenue – $417 Million vs. $404.2 Million expected
- $417M of revenue in Q1 was driven by strong customer acquisition, increased customer engagement, and healthy customer retention.
- Industry-leading 2 (1) product made strides – Launched Formula 1 and new USFL daily fantasy sports contests and Expanded Breadth of OSB micro and same game parlay market.
- Launched OSB in New York and Louisiana – launched DKNG branded OSB in Oregon 3 Live In 36% of the U.S. Population for OSB – Live In 11% of the U.S. Population for iGaming.
- Continued to operationalize initiatives to drive already excellent player retention – Launched In-house (end to end) NFT capabilities.
DraftKings’ most recent earnings report was on February 18, 2022. The reported $0.80 EPS for the quarter, which was $0.02 higher than the consensus estimate of $0.82 over the last year, DraftKings has generated $3.78 earnings per share ($3.78 diluted earnings per share).
DraftKings reported $473 million in revenue in the fourth quarter of 2021, a 47% increase year over year. When mobile betting was introduced in several states during the same time period, the company had an average of 1.5 million monthly unique paying customers on its platform.
DraftKings announced in January that it would become the official sportsbook provider for the Oregon Lottery, which the state government runs. According to the terms of the agreement, DraftKings Sportsbook will take over the current Scoreboard app on January 18.
DraftKings strategically launched its mobile sports betting in New York just before the NFL Playoffs in the first quarter, one of the busiest times of the year for betting activity. The company plans to be one of the first to launch in the Empire State.
DraftKings and the Washington Tribes announced an exclusive market access partnership to bring the DraftKings retail sportsbook experience to Washington. When it goes live, Washington will be the 19th state where DraftKings’ Sportsbook product is available.
DraftKings Inc. is a digital sports entertainment and gaming company founded to fuel sports fans’ competitive spirit through products such as daily fantasy, regulated gaming, and digital media.
DraftKings currently offers mobile sports betting in 18 states, which account for 36% of the U.S. population. It is operational with iGaming in five states, representing approximately 11% of the U.S. population.