First-quarter revenue was up 30% to $89 million, and was up 60% pre-COVID-19 at the "old DraftKings." As strong as that growth was, the net loss more than doubled to $68.7 million, or $0.18 per share, as the company invested in growing the business.
Management said that new products like esports, eNASCAR, and Korean baseball betting have offset some of the losses from the lack of live sports that COVID-19 has left behind. And it makes sense that betting will return to higher levels when sports resume in the next few months.
It's tough to make a judgment on whether or not DraftKings' stock is a steal right now given the losses it is reporting. And its $10.2 billion market cap is higher than a lot of huge casino companies at the moment. But investors are pleased to see that the business has stabilized despite COVID-19 headwinds, and they see a lot of potential for growth as sports return. Despite today's pop, I'll take a cautious approach and stay out of this high-flying stock until I know more about what the bottom line is going to look like long term.