DraftKings shares jumped as much as 5% in early trading after the sportsbook reported second quarter earnings that beat Wall Street estimates.
DraftKings reported quarterly revenue of $298 million, topping average analyst projections of $242 million. Loss per share was $0.26, beating estimates of -$0.52.
The company also revised its full year 2021 projections for the second time in as many quarters. DraftKings now estimates full-year revenue to be in the $1.21-$1.29 billion range, up from previous guidance of $1.05-$1.15 billion. This number is more fluid for DraftKings than many other companies because much of its business growth is contingent on the movement of state legislatures changing their laws, and those timetables often expand and contract dramatically.
DraftKings is in the process of diversifying its business beyond just daily fantasy and sports betting. iGaming is becoming an important vertical for the company, but it is also looking further afield. DraftKings recently launched the DraftKings Marketplace, a platform for digital collectibles, in partnership with Tom Brady’s NFT company, Autograph. It has also been active in pursuing media opportunities.
One area of particular note for DraftKings investors—the company’s marketing spend. The state-by-state land rush means DraftKings’ business is always growing, but that comes with a cost. The company’s “sales and marketing” spend in the second quarter was $157 million, down from $220 million in the first quarter and up from $57 million in a COVID-muted second quarter last year.