DraftKings stock jumped more than 11% in pre-market trading after the company raised its revenue expectations for the year.
DraftKings says it now expects full-year revenue to be in the range of $540 million to $560 million. It had previously predicted sales to be between $500 million and $540 million.
Any upward revision is good news during what has been a wild year for the Boston-based company. DraftKings went public via acquisition earlier this year, in the middle of a pandemic that halted the entire U.S. sports calendar. The return of sports and the expansion of legal sports betting to more states has helped the stock grow 130% from the price on its first day of trading.
Last week’s election delivered good news as well. Gambling or sports betting initiatives were on the ballot in a handful of states, and all passed comfortably. DraftKings has mobile sports betting in 10 different states, more than any other sportsbook. Those states represent 20% of the U.S. population.
For the three months ended Sept. 30, DraftKings reported revenue of $133 million, roughly in line with analyst expectations. In that span, primarily because of a marketing spend that exceeded $200 million, the company lost $348 million, with net losses of $0.98 per share. However, DraftKings ended the quarter with more than $1.1 billion in cash on hand, which could give the company an opportunity to be aggressive in acquisitions.
To give a sense of the company’s projected growth, DraftKings says 2021 revenue is expected to be between $750 million and $850 million. Something in the middle of that range would be a roughly 45% growth over this year’s expected targets.