DraftKings Revenue Grew 20% YoY in June 2020
According to the company’s Q2 2020 earnings call, it had $71 million in revenue, up from $57 million during a similar period the previous year. However, during the same period, it had a loss of $161.4 million or $0.55 per share. Comparatively, the loss experienced in Q2 2019 was $28 million or $0.15 per share. Dow Jones had estimated a lower loss per share of 20 cents, as well as lower revenue of $66.4 million. During Q1 2020, total sales amounted to $88.5 million, a 30% improvement over Q1 2019.
As sporting events resumed, revenue increased remarkably, starting with a 20% YoY improvement in June 2020. Based on the performance seen in the first part of Q3, the company predicts $500 million to $540 million as total revenue in 2020. This would be a growth rate of 22% to 37% during H2 2020. Part of the reason for its revenue improvement was its creation of new betting opportunities. Gamblers could wager on Korean baseball, table tennis, charity golf and video games.
Since its merger with SBTech and Diamond Eagle Acquisition Corp, DraftKing shares went on a tear. For instance, in the first month after its debut on NASDAQ, its share price shot up by 67%. By the start of June, the company was valued at $13 billion. However, Morgan Stanley downgraded the stock from overweight to equal weight. In spite of this though, its share price on September 2 was $37.05. This marked a monthly increase of 13.46% and a growth rate of 274.92% in the preceding 12 months.