Shares of sports betting company DraftKings (NASDAQ:DKNG) jumped more than 10% in pre-market trading Friday after the company reported better-than-expected third-quarter results and a surge in users.
The Boston-based DraftKings reported loss per share: 57 cents, vs 61 cents expected, according to analysts. Revenue came in at $133 million, compared to the $132 million expected
"The resumption of major sports such as the NBA, MLB and the NHL in the third quarter, as well as the start of the NFL season, generated tremendous customer engagement," DraftKings CEO Jason Robins said.
The company also raised its fiscal year 2020 guidance to a range of $540 to $560 million, from a range of $500 to $540 million. DraftKings said it expects $750 million to $850 million in revenue for 2021.
DraftKings spent millions last quarter on its partnerships, including with Michael Jordan in an equity deal, the New York Giants, Chicago Cubs, Turner Sports and ESPN.
The company had been looking to increase its brand exposure as it fought to gain market share in the growing sports betting landscape. Currently, 19 states, plus Washington D.C., allow online sports betting. Six states legalized sports wagering but are not yet operational, while two states are working on legislation to allow betting.
The company said its monthly unique payers surpassed one million, a 64% increase compared to the same quarter a year ago.
The good vibes continued into the start of Friday’s session, when DKNG gained $2.69, or 6.5% to $43.94.
