DraftKings Q1 results: ‘we haven’t seen any impact from inflation’

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DraftKings Inc (NASDAQ: DKNG) reported better-than-expected revenue for its fiscal first quarter on Friday. Shares still slid 8.0% as increased expense made it lose more money on a year-over-year basis.

Notable figures in DraftKings Q1 earnings report

  • Lost $467.7 million in Q1 versus the year-ago figure of $346.3 million.
  • Per-share loss of $1.14 was worse than 87 cents a share last year.
  • Adjusted per-share loss stood at 74 cents in the recent financial quarter.
  • Revenue jumped 34% to $417 million, as per the earnings press release.
  • Consensus was for adjusted per-share loss of $1.09 on $412 million in revenue.
  • Ended the quarter with 2 million monthly unique payers, up 29% YoY.
  • $67 of average revenue per payer was 11% higher than the same quarter last year.

DraftKings cited strong customer acquisition, engagement, and retention for top-line growth in fiscal Q1.

Future outlook and CEO’s interview on CNBC

Also on Friday, DraftKings raised its guidance for full-year revenue to $1.93 billion – $2.03 billion on up to $840 million in adjusted EBITDA loss. On CNBC’s “Squawk on the Street”, CEO Jason Robbins said:

We haven’t seen any impact on demand due to inflation. We found a number of cost efficiencies and overall, the macroeconomic environment could help sports betting gain more momentum.

The stock is now down 50% for the year. DraftKing’s 2022 outlook doesn’t factor in the Golden Nugget acquisition and the upcoming launch in Ontario, Canada. The chief executive added:

Golden Nugget will add a ton of synergy that’ll eventually make its way to the bottom-line. Ontario will meaningful contribution to profit, and both will grow top-line in this year and beyond.

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Source: https://invezz.com/news/2022/05/06/draftkings-q1-results-we-havent-seen-any-impact-from-inflation/