DraftKings (NASDAQ:DKNG) stock isn’t doing so hot on Friday after the sports betting company released its earnings report for the fourth quarter of 2021.
It’s not actually the company’s most recent results that are hammering DKNG stock today. Instead, it’s the company’s outlook for 2022 that has investors running for the hills.
The big news beating up DNKG stock today is its Adjusted EBITDA guidance for 2022. This has it expecting losses between $825 million and $925 million. For comparison, adjusted EBITDA in 2021 was $676.13 million.
It’s not all bad news from the most recent DraftKings earnings report. Part of its guidance update includes revenue ranging from $1.85 billion to $2 billion. At the midpoint of $1.93 billion, that will beat out the $1.9 billion Wall Street is expecting from the company.
So how’d the company do during the fourth quarter of 2021? DraftKings CFO Jason Park sums it up as follows.
“We grew revenue 47% year-over-year to $473 million in the fourth quarter despite lowerthan-expected hold in October primarily due to NFL game outcomes. Our key performance indicators reflected excellent player retention, acquisition and cross-selling in the quarter, as Monthly Unique Payers increased by 32% and Average Revenue Per Monthly Unique Payer grew by 19%.”
All of this news has shares of DKNG stock seeing heavy trading today. As of this writing, more than 33 million shares of the stock have changed hands. That’s a major increase over its daily average trading volume of 21.9 million shares.
DKNG stock is also falling 20.7% as of Friday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.