Shares of DraftKings (NASDAQ:DKNG) stock are up by about 15% after the sports betting company released its fourth-quarter earnings and raised its 2023 revenue guidance. DraftKings now expects revenue between $2.85 billion and $3.05 billion for 2023, up from the previous guidance of between $2.8 billion and $3 billion. At the two figures’ respective midpoints, the new guidance represents a raise of about 1.7%.
For the fourth quarter, DraftKings reported record revenue of $855 million, up by 81% from $473 million a year ago. Revenue growth was driven by customer retention, new launches of Sportsbook and iGaming products and “structural sportsbook hold improvement.”
Meanwhile, average monthly unique players (MUP) grew to 2.6 million, up 31% year-over-year (YOY). On top of that, average revenue per MUP was $109, up by 42% YOY.
Guidance for 2023 adjusted earnings before interest, taxes, deductions, and amortizations (EBITDA) was also raised. That figure is now expected to come in between negative $350 and $450 million, compared to previous guidance of between negative $475 and $575 million.
“Moving into 2023, we will continue to drive revenue growth and focus on expense management to accelerate our Adjusted EBITDA growth,” said CEO Jason Robins. “We have already taken several actions that resulted in an increase to our revenue guidance and significant improvement in our Adjusted EBITDA guidance.”
5 Investors Betting Big on DKNG Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q4, 459 13F filers disclosed a stake in DKNG, down from 497 filers as of Q3. These investors own a total of 257.90 million shares of DKNG, slightly up from 257.65 million shares. Meanwhile, the institutional put/call ratio sits at 1.02, down from 1.51. That’s equivalent to 28.93 million puts and 28.24 million calls, implying a neutral options stance.
With that in mind, let’s take a look at the largest shareholders of DraftKings:
- Vanguard: 35.26 million shares. Vanguard purchased 632,294 shares during Q4.
- Ark Investment Management: 22.69 million shares. Ark last purchased 136,855 shares on Dec. 29.
- BlackRock (NYSE:BLK): 15.34 million shares. BlackRock purchased 883,765 shares during Q4.
- Capital Research Global Investors: 13.99 million shares. Capital Research purchased one million shares during Q4.
- Sumitomo Mitsui Trust Holdings: 13.99 million shares. Sumitomo purchased 798,877 shares during Q4.
On the date of publication, Eddie Pan did not hold (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.
