Earnings To Watch: DraftKings Reports Q3 Results Tomorrow
DraftKings Inc (NASDAQ: DKNG), a leader in fantasy sports and betting, will announce its Q3 results this Thursday afternoon.
Previous Quarter Highlights
- DraftKings reported $1.51 billion in revenue, a 36.9% increase year on year.
- Revenue beat analysts’ expectations by 5.9%.
- The company showed a strong performance with adjusted operating income and EBITDA significantly surpassing estimates.
- User base grew by 6.5% year on year, reaching 3.3 million users.
Current Quarter Expectations
For the upcoming quarter, analysts forecast revenue to climb 10.6% year on year to $1.21 billion, reflecting a slowdown compared to last year’s 38.7% increase.
Adjusted loss per share is expected at -$0.26. Analysts have mostly maintained their estimates over the past 30 days, indicating steady confidence in the company’s outlook.
Industry Context
DraftKings has missed revenue estimates five times in the past two years. Competitors in the gaming solutions sector provide useful benchmarks:
- Rush Street Interactive reported a 19.7% year-on-year revenue increase, beating expectations by 4.3%.
- Accel Entertainment noted a 9% revenue increase for Q3.
"DraftKings beat analysts’ revenue expectations by 5.9% last quarter, reporting revenues of $1.51 billion, up 36.9% year on year."
Author’s summary: DraftKings enters its Q3 earnings report with strong past growth and steady analyst optimism despite a forecasted revenue growth slowdown.