DraftKings Q2 Results Shows Mixed Signals Of Stock Price And Revenue

• DraftKings Q2 results were released on Friday and the company has received $71 million in revenue but also lost $0.55 per share this quarter.
• The company was able to deal with the effects of COVID-19 on sports and still be debt-free on the balance sheets.
• DraftKings is working to continue its expansion in the US sports betting market.

BOSTON – DraftKings releases its second-quarter financial reports on Friday and it reflected unexpected growth and loss at the same time.

The sportsbook beat revenue predictions by recording $71 million in Q2 but also experienced a net loss of $0.55 per share this quarter.

DraftKings was able to end the quarter adding $800 million with no debt on the balance sheet and receiving $1.2 billion in cash.

These results have put the company in a good position to continue to expand its services in new states and create new opportunities for legal sports betting in the country after dealing with unprecedented times.

“In the second quarter, while several major sports leagues including the NBA, MLB and the NHL remained on hiatus due to COVID-19, the Company worked creatively to engage fans with new fantasy sports and betting products for NASCAR, golf, UFC, and European soccer,” said the company in a press release. “As sporting events began to resume, the Company saw increased engagement with its sports-based product offerings, which contributed to sequential monthly revenue improvement during the second quarter.”

With the return of the NBA, NHL, MLB, WNBA, and MLS, the company is looking to begin the third quarter continuing and accelerating the positive momentum.

DraftKings is introducing revenue guidance for $500 million to $540 million which equates to a 22% to 37% percent year-over-year pro forma revenue growth in the second half of this year.

“We believe that the best product will ultimately win with the American consumer,” said Jason Robins, DraftKings Co-Founder, CEO and Chairman of the Board. “As a technology first organization, we will continue to focus on bringing new and innovative products to market that strengthen our engagement with customers and maintain our competitive differentiation.”

During the second quarter, DraftKings was successful in launching iGaming in Pennsylvania and sports betting in Colorado. Since the ending of Q2 on June 30, the company has also launched iGaming in West Virginia, sports betting in Illinois, and is working to join the Virginia and Tennessee sports betting market soon.

News tags: COVID-19 | DraftKings | Jason Robins | Q2