DraftKings raised its revenue guidance for the financial year following its latest earnings report on Friday, but the sportsbook has taken a hit amid concerns over profitability.
The Boston-based company posted revenue of $417 million in Q1 2022, up from $312 million for the same period the year prior. DraftKing’s Q1 growth was driven by the company’s B2C segment, which generated $404 million in revenue, a 44% increase compared to Q1 2021.
- It raised its FY2022 guidance by $50 million to between $1.9 billion and $2 billion.
- DraftKings reported 2 million monthly unique payers in Q1, a 29% uptick from Q1 2021.
- It reported that inflationary pressures had no impact on its business in Q1 2022.
Despite what seems to be a strong start to the financial year, DraftKings faces an uphill battle to reach profitability. The company saw its operating expenses in Q1 2022 reach $933 million, a 46% increase year-over-year. DraftKings also reported a net loss of $468 million during the quarter, compared to $346 million for the same period the year prior.
Shares of the company have also tanked around 74% in the past year, from nearly $52 to $13.
DraftKings, which is live with online sports betting in 17 states, hopes to improve its woes with successful launches of legalized mobile betting in New York and Louisiana in Q1 2022.
On May 5, DraftKings acquired Golden Nugget Online Gaming for $450 million. DraftKings anticipates the acquisition will provide an increase in revenue with a combined customer reach of 5 million.