DraftKings (NASDAQ: DKNG) reports $473 million in revenue in the fourth quarter, more than the $445.3 million consensus estimate for the quarter. In addition, DraftKings expects full-year revenue of $1.85 billion to $2 billion in 2022, topping the $1.9 billion consensus estimate.
DraftKings tops Q4 consensus estimates
DraftKings recorded total revenue of $473 million in the fourth quarter, representing a 47% increase compared to the $322 million it recorded in the same quarter of the previous fiscal year.
The Q4 revenue for 2021 was more than the outlook the company provided in the third quarter of 2021.
After agreeing to the merger between Diamond Eagle Acquisition Corp and SBTech (Global) Limited, which was completed in 2020, total revenue for the 2021 fiscal year increased by 101% compared to the previous fiscal year. DraftKings’ Co-Founder, Chief Executive Officer and Chairman, Jason Robins, said:
Our excellent quarter capped off a year in which five of our states were Contribution Profit positive, further demonstrating the effectiveness of our state playbook and supporting our positive view of the industry’s TAM. We enter 2022 positioned to grow our market share, further optimize our user experience and continue to strengthen our multi-product suite of offerings.
The company’s Chief Financial Officer, Jason Park, added:
We grew revenue 47% year-over-year to $473 million in the fourth quarter despite lower-than-expected hold in October primarily due to NFL game outcomes
The CFO claimed their KPIs reflected excellent player retention, cross-selling and acquisition in the fourth quarter, driven by the 32% growth in Monthly Unique Payers and 19% growth in Average Revenue for each Monthly Unique Payer.
Increasing 2022 revenue guidance
DraftKings intends to increase its revenue outlook for the 2022 financial year to between $1.85 billion to $2 billion from $1.9 billion. This represents a 43%-54% year-over-year increase. The company is also introducing an Adjusted EBITDA guidance for the 2022 financial year. It predicts an Adjusted EBITDA loss in the range of $825 million-$925 million.
The company also expects a positive Contribution Profit in the 2022 financial year across all the US states where it currently resides, including Louisiana and New York.