DraftKings (DKNG 1.99%) has dropped over 70% from its all-time highs. Today's video focuses on bullish and bearish points from DraftKings' recent earnings and what investors should keep their eyes on during the next few quarters. Here are some highlights from the video.
- DraftKings reported revenue of $473 million, up 47% year over year (YoY), driven by strong customer acquisition, increased engagement, and healthy retention of customers. Monthly unique players are up 32% YoY, and average revenue per monthly unique player is up 19%.
- DraftKings rose its fiscal year 2022 revenue guidance by 7% at the midpoint compared to its previous guidance. The new midpoint guidance would equate to a 49% growth in revenue.
- Unfortunately, DraftKings expects an adjusted EBITDA loss of $925 million at the top end for 2022. Most losses are accrued from the high cost of player acquisition in new states. Management did note that it currently has over $2.2 billion in cash and cash equivalents.
Click the video below for my full thoughts and analysis.
*Stock prices used were the market prices of Feb. 23, 2022. The video was published on Feb. 23, 2022.