{"id":225153,"date":"2022-08-05T16:13:46","date_gmt":"2022-08-05T21:13:46","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=225153"},"modified":"2022-08-05T16:25:48","modified_gmt":"2022-08-05T21:25:48","slug":"draftkings-surges-on-lower-loss-estimate-lifted-revenue-outlook","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/draftkings-surges-on-lower-loss-estimate-lifted-revenue-outlook\/","title":{"rendered":"DraftKings Soars on Boosted 2022 Revenue Outlook, Sees Lower EBITDA Loss"},"content":{"rendered":"

DraftKings (NASDAQ:DKNG) soared 9.78% today, ranking as one of Friday\u2019s best-performing gaming stocks. That’s after the company boosted its 2022 revenue guidance while trimming its earnings before interest, taxes, depreciation and amortization (EBITDA) forecast.<\/p>\n

\"DraftKings\"
Staffers at DraftKings headquarters in Boston. The stock soared today on a boosted revenue outlook. (Image: CNBC<\/em>)<\/figcaption><\/figure>\n

The online sportsbook operator is now projecting 2022 revenue of $2.08 billion to $2.18 billion, up from a prior outlook of $2.05 billion to $2.17 billion. That implies year-over-year revenue growth of 60% to 68%. Analysts were expecting $2.1 billion. Boston-based DraftKings sees a 2022 EBITDA loss of $765 million to $835 million — better than the previously forecast loss of $810 million to $910 million.<\/p>\n

The revenue forecast doesn\u2019t include Kansas, Maryland, Ohio, and Puerto Rico — jurisdictions where DraftKings has market access, and in which sports wagering is legal, but not yet live. Nor does the top line estimate include Massachusetts, where DraftKings<\/a> will likely be granted an online license owing to its homegrown status. Acquisitions and new market entries contributed to the elevated guidance.<\/p>\n

DraftKings is raising its fiscal year 2022 revenue guidance to a range of $2.08 billion to $2.18 billion from the range of $2.055 billion to $2.175 billion previously announced on the Company\u2019s first quarter earnings call on May 6, 2022, which included contributions from the Company\u2019s acquisition of GNOG and the Company\u2019s expected launch in Ontario,\u201d<\/strong> according to a statement issued by the company.<\/p><\/blockquote>\n

DraftKings currently offers mobile sports wagering in 17 states, covering 36% of the US population, and iGaming in five states, representing 11% of the population.<\/p>\n

DraftKings Cedes Market Share<\/h2>\n

Data indicate FanDuel remains the dominant online sportsbook operator in the US, with DraftKings and BetMGM tussling for the second spot<\/a>.<\/p>\n

\n

In the second quarter, DraftKings\u2019 market share slipped on an incremental basis. But at least one analyst says that\u2019s not necessarily bad news, noting it could be a sign the company is reining in heavy promotional spending. That\u2019s long hindered its ability to become profitable.<\/p>\n<\/div>\n

\u201cThat said, the rev\/EBITDA beat also came alongside market share losses to FanDuel, where perhaps DKNG is beginning to prioritize profitability over market share,\u201d wrote Roth Capital analyst Edward Engel in a note to clients today.<\/p>\n

He rates DraftKings \u201cneutral,\u201d with a 12-month price target of $14. That\u2019s well below today\u2019s closing print of $17.96.<\/p>\n

Engel notes that although promotional spending in the industry is being tempered at the moment, that could change with the imminent arrival of football season.<\/p>\n

\u201cA key debate for OSB stocks is the sustainability of a more rational promo environment. Some of the YTD rationalization is due to seasonality, and EBITDA losses could exceed expectations if promo intensity becomes irrational again during NFL season,\u201d adds the analyst.<\/p>\n

Second-Half Catalysts for DraftKings<\/h2>\n

With the stock higher by 32.26% over the past month and flirting with its first close above $18 since April, DraftKings could use catalysts beyond the arrival of football season to stoke further upside.<\/p>\n

Those could arrive in the form of Maryland finally getting online wagering off the ground, Massachusetts swiftly doing so and California voters signing off<\/a> on online sports betting in the largest US state.<\/p>\n

Regarding California, \u201cDraftKings is cautiously optimistic about the ultimate outcome in November and the potential to generate hundreds of millions of dollars to address homelessness, mental health, and addiction in partnership with the state\u2019s Tribes,\u201d <\/strong>the company said in the statement.<\/p>\n","protected":false},"excerpt":{"rendered":"

DraftKings (NASDAQ:DKNG) soared 9.78% today, ranking as one of Friday\u2019s best-performing gaming stocks. That’s after the company boosted its 2022 revenue guidance while trimming its earnings before interest, taxes, depreciation and amortization (EBITDA) forecast. The online sportsbook operator is now projecting 2022 revenue of $2.08 billion to $2.18 billion, up from a prior outlook of […]<\/p>\n","protected":false},"author":46,"featured_media":225154,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,1074],"tags":[81903,80968],"acf":[],"yoast_head":"\nDraftKings Surges On Lower Loss Estimate, Lifted Revenue Outlook<\/title>\n<meta name=\"description\" content=\"DraftKings rallies on optimistic revenue forecast, reduced EBITDA loss outlook.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/draftkings-surges-on-lower-loss-estimate-lifted-revenue-outlook\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DraftKings Surges On Lower Loss Estimate, Lifted Revenue Outlook\" \/>\n<meta property=\"og:description\" content=\"DraftKings rallies on optimistic revenue forecast, reduced EBITDA loss outlook.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/draftkings-surges-on-lower-loss-estimate-lifted-revenue-outlook\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-08-05T21:13:46+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-08-05T21:25:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/dkng2-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-surges-on-lower-loss-estimate-lifted-revenue-outlook\/\",\"url\":\"https:\/\/www.casino.org\/news\/draftkings-surges-on-lower-loss-estimate-lifted-revenue-outlook\/\",\"name\":\"DraftKings Surges On Lower Loss Estimate, Lifted Revenue Outlook\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-surges-on-lower-loss-estimate-lifted-revenue-outlook\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-surges-on-lower-loss-estimate-lifted-revenue-outlook\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/dkng2-scaled.jpg\",\"datePublished\":\"2022-08-05T21:13:46+00:00\",\"dateModified\":\"2022-08-05T21:25:48+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"DraftKings rallies on optimistic revenue forecast, reduced EBITDA loss outlook.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-surges-on-lower-loss-estimate-lifted-revenue-outlook\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/draftkings-surges-on-lower-loss-estimate-lifted-revenue-outlook\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-surges-on-lower-loss-estimate-lifted-revenue-outlook\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/dkng2-scaled.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/dkng2-scaled.jpg\",\"width\":2560,\"height\":1707,\"caption\":\"Staffers at DraftKings headquarters in Boston. The stock soared today on a boosted revenue outlook. 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