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DraftKings’ revenue for Q1 2021 exceeds expectations

Sports-betting platform DraftKings revealed its Q1 2021 financial results. The company reported a 175% year-on-year increase in revenue to $312m, benefitting from the rollout of its platform in US states.

Outperformance

The sports betting and iGaming company DraftKings reported its first-quarter 2021 financial results last Friday.

The report pointed to better-than-expected revenue increases in the first quarter of 2021 and showed continued growth in revenue and user base. The company made a 175% year-on-year increase in revenue to $312m. It also reported a 5-fold increase in net loss to $346.3m. Losses aside, the revenue guidance for the whole of 2021 was raised, forecasting revenue of $1.05 billion to $1.15 billion in 2021.

The company had 1.5 million monthly unique paying customers. The report reveals that they engaged with DraftKings each month during the fourth quarter, representing a 114% yearly increase.

Commenting on the results, DraftKings CEO Jason Robins said: “Our $312m in first-quarter revenue, 114% increase in MUPs and 48% growth in ARPMUP reflect solid customer acquisition and retention, as well as successful launches of mobile sports betting and online gaming in new states.”

A higher marketing spending and new markets

DraftKings has benefited from the rollout of its platform in the US where more states are on the path to legalising sports gambling.

DraftKings notably launched mobile sports betting in Michigan and Virginia and was chosen as an official partner of the Professional Fighters League and of the NFL in April.

In the year’s first quarter, spending on sales and marketing grew by 324% year over year to $229m, which was important to raising customers’ awareness of the platform as sports betting becomes legal in more places.

“The net effect is that we continue to expect to spend significantly more on sales and marketing in 2021 compared to 2020”, Chief Financial Officer Jason Park said.

 

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