First quarter 10-Q: sec.gov
DraftKings posts weaker-than-expected first-quarter earnings but sees no long-term impact from COVID-19
Published: May 15, 2020 at 7:28 a.m. ET
By Ciara Linnane
Online-gambling and fantasy-sports company DraftKings Inc. DKNG, -2.10% said Friday it had a net loss of $68.7 million, or 18 cents a share, in the first quarter, wider than the loss of $29.6 million, or 8 cents a share, posted in the year-earlier period. The Boston-based company said revenue rose 30% to $88.5 million from $68.1 million. The FactSet consensus was for a loss per share of 15 cents and revenue of $104 million. The company, which went public in April via a blank-check company merger with a $6 billion valuation, said the revenue jump came despite the effects of COVID-19, which has temporarily suspended live sporting events. The company has continued to make progress on priorities, including entering new states, investing in product and technology to create more live betting for American-based sports. The company has created products that allow customers to engage in fantasy sports and betting on eNASCAR, Counter Strike, and Rocket League, as well as pop culture events such as TV shows "Survivor," "The Last Dance" and "Top Chef."" The company does not anticipate an impact to FY2021 or long-term plans due to COVID-19," it said in a statement. Shares fell 3.2% premarket.
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