After giving pro forma effect to the business combination with SBTech and Diamond Eagle Acquisition Corp. which was completed on April 23, 2020, as if it had occurred on January 1, 2019, revenue grew 175% compared to the three months ended March 31, 2020.
“DraftKings is off to an outstanding start in 2021,” said Jason Robins, DraftKings’ co-founder, CEO and Chairman of the Board.
“We continued to make progress and remain on track with the migration to our own in-house proprietary sports betting engine, strengthened our content and technology capabilities with the acquisitions of VSiN and BlueRibbon Software, and invested in further differentiating our product offering with the upcoming rollout of social functionality in our DFS and mobile Sportsbook apps,” Robins added.
Jason Park, DraftKings’ Chief Financial Officer, added: “Our US$31m in first quarter revenue, 114% increase in MUPs and 48% growth in ARPMUP reflect solid customer acquisition and retention as well as successful launches of mobile sports betting and iGaming in new states. We are raising our revenue outlook for 2021 due to the outperformance of our core business in the first quarter and our expectation for continued healthy growth.”
As a result, DraftKings is raising its fiscal year 2021 revenue guidance from a range of US$900m to US$1bn to a range of US$1.05bn to US$1.15bn, which equates to year-over-year growth of 63% to 79% and a 16% increase compared to the midpoint of the company's previous guidance.
The increase reflects solid performance in the first quarter of 2021, continued strong user activation due to the effectiveness of the company's marketing spend, well-executed launches of mobile sports betting and iGaming in Michigan and mobile sports betting in Virginia, and a modest contribution from the company's recently completed acquisitions.
DraftKings is live with online sports betting in 12 states that collectively represent 25% of the US population. The company is live with iGaming in four states, representing approximately 10% of the US population.
Source: GMB
