DraftKings (NASDAQ:DKNG) earnings for the first quarter of 2020 have DKNG stock heading higher on Friday. That’s thanks to the company reporting an adjusted loss per share of 19 cents, which is under Wall Street’s estimate of a 11-cent loss. Also, revenue specifically for DraftKings came in at $88.54 million, while SBTech reported earnings of 22.59 million euros. Both companies were private a year ago, and went public in a reverse merger with Diamond Eagle in April.
Now, let’s take a closer look at the most DraftKings’ earnings report.
- Draftkings revenue is sitting 30% higher than the $68.09 million from the first quarter of 2019.
- Meanwhile, SBTech’s revenue was up by 3.2%
- DraftKings’ operating loss of $66.12 million is 118.9% worse year-over-year than a loss of $30.21 million.
- The DraftKings earnings report also has it bringing in a net loss of $68.68 million.
- That’s 132.4% wider compared to its net loss of $29.55 million from the same period of the year prior.
Jason Robins, co-founder, CEO and chairman of DraftKings, said this about the DKNG stock earnings:
“We are uniquely positioned at the intersection of digital sports entertainment and gaming in a rapidly growing industry. DraftKings recorded standalone Q1 year-over-year revenue growth of 30% despite the effects of COVID-19. Additionally, the engagement we continue to see from our customers validates the connection they have with our content, their passion for our products and most importantly their loyalty to our brand.”
The company did not include fiscal year 2020 guidance, but stated that it does not anticipate an impact to FY2021 or long-term plans due to the novel coronavirus. That said, Wall Street’s estimates for 2020 include a per-share loss of 42 cents on revenue of $439.07 million.
DKNG stock ended the day Friday up 15.4%.
Nick Clarkson is a web editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities.