Draftkings reports fourth quarter and full-year 2020 results and raises 2021 revenue guidance
By Reshma on Feb 26, 2021 | 03:36 AM IST
DraftKings Inc. [DKNG]
(“DraftKings” or the “Company”) today reported fourth quarter and full-year
2020 financial results.
Fourth Quarter 2020 Highlights
For
the three months ended December 31, 2020, DraftKings reported revenue of
$322 million, an increase of 146% compared to $131 million during the same
period in 2019. After giving pro forma effect to the business combination with
SBTech (Global) Limited (“SBTech”) and Diamond Eagle Acquisition Corp. which
was completed on April 23, 2020, as if it had occurred on January 1,
2019, revenue grew 98% compared to the three months ended December 31,
2019.
“With
a favorable fourth quarter sports calendar and strong marketing execution,
DraftKings was able to generate tremendous customer acquisition and engagement
that propelled us to $322 million in fourth quarter revenue, a 98% year over
year increase,” said Jason Robins, DraftKings’ co-founder, CEO and Chairman of
the Board. “In the fourth quarter of 2020, we saw MUPs increase 44% to 1.5
million and ARPMUP increase 55% to $65. We are raising our revenue outlook for
2021 due to our expectation for continued growth, the outperformance of our
core business and newly launched states that were not included in our previous
guidance.”
Favorable Sports Calendar and Strong Customer Engagement Drove Q4
Results
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Monthly
Unique Payers (“MUPs”) for our B2C segment increased 44% compared to the
fourth quarter of 2019. On average, 1.5 million monthly unique paying
customers engaged with DraftKings each month during the fourth quarter. The
increase reflects strong unique payer retention and acquisition across DFS, OSB
and iGaming. For 2020, MUPs increased 29%, which includes the impact of
COVID-19 on our MUPs for Sportsbook and DFS primarily during the second
quarter and early in the third quarter. |
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Average
Revenue per MUP (“ARPMUP”) was $65 in the fourth quarter representing a 55%
increase versus the same period in 2019. Our ARPMUP was positively impacted
by increased engagement with our iGaming and mobile sports betting product
offerings as well as successful cross-selling. For 2020, ARPMUP increased
29%. |
Increasing 2021 Revenue Guidance
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DraftKings
is raising its fiscal year 2021 revenue guidance from a range of $750 million
to $850 million to a range of $900 million to $1 billion, which equates to
year-over-year growth of 40% to 55% and a 19% increase compared to the
midpoint of our previous guidance. |
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The
increase reflects strong performance in the fourth quarter of 2020,
substantial user activation due to the effectiveness of our 2020 marketing
spend, and the launch of mobile sports betting and iGaming in Michigan and
mobile sports betting in Virginia. This guidance also assumes that all
professional and college sports calendars that have been announced come to
fruition and that we continue to operate in states in which we are live
today. |