By Dhirendra Tripathi
Investing.com – DraftKings stock (NASDAQ:DKNG) slipped 0.5% on Friday after third-quarter revenue fell short of expectations while expenses soared.
The company also cut the upper end of its previous guidance, owing to unfavorable results in some NFL matches in October. At the same time, it raised the midpoint of the guidance.
DraftKings now sees revenue between $1.24 billion and $1.28 billion, compared to the previous forecast of $1.21 billion to $1.29 billion. The revised guidance includes a $25 million negative revenue impact primarily due to NFL event outcomes in October.
It also initiated a guidance for 2022, pegging the revenue to come in at $1.8 billion at midpoint.
Revenue rose 60% from last year, to $213 million, and was in line with the company’s guidance but the analysts expected more, their hopes and estimates pinned on the booming business.
With casinos off limits during the pandemic and the company taking its gambling and sport betting offerings to more states (Arizona and Wyoming during the quarter) in the U.S. and Canada, DraftKings couldn’t have asked for more. But in a stretched supply environment, that also meant higher expenses to secure that revenue and costlier sales and marketing.
Revenue for DraftKings rose to $213 million in the third quarter ended Sept. 30.
The adjusted loss per share was narrower at 82 cents and beat estimates.