DraftKings raised its revenue guidance for the financial year following the sportsbook’s latest earnings report on Friday, but its shares took a tumble due to concerns over profitability.
The Boston-based company generated $473 million in revenue in Q4 2021, a 47% increase compared to the same period the year prior. Despite the growth, DraftKings posted a loss of $326 million during the quarter, a steep jump from a $243 million loss in Q4 2020.
Losses for the full FY2021 reached $1.5 billion in FY2021, up from $1.2 billion in 2020.
DraftKings expects FY2022 revenue to range between $1.9 billion and $2 billion, a slight uptick from a previous target between $1.7 billion and $1.9 billion. The company attributes the projected growth to the recent launch of mobile sports betting in Louisiana and New York.
DraftKings plans to continue its expansion.
- The company is exploring market opportunities in Maryland, Puerto Rico, and Ohio.
- Currently, it offers mobile betting in 17 states — roughly 35% of the U.S. population.
The company’s shares fell by more than 20% on Friday in response to its reported losses.
More Than Gambling
Last December, NFLPA licensing partner OneTeam Partners and DraftKings announced a deal to release products on DraftKings Marketplace during the 2022-23 NFL season.
The two entities anticipate creating NFTs that can be used in games within the DraftKings platform.