US – DraftKings increases 2021 revenue guidanceBy Lewis - 1 March 2021
In Q4, DraftKings reported revenue of $322m, an increase of 146 per cent compared to $131m during the same period in 2019.
DraftKings is raising its fiscal year 2021 revenue guidance from a range of $750m – $850m to a range of $900m – $1bn, which equates to year-over-year growth of 40 – 55 per cent and a 19 per cent increase compared to the midpoint of the company’s previous guidance.
DraftKings has attributed the increase to strong performance in the fourth quarter of 2020, substantial user activation due to the effectiveness of marketing spend, and the launch of mobile sports betting and iGaming in Michigan and mobile sports betting in Virginia.
The guidance also assumes that all professional and college sports calendars that have been announced come to fruition and will continue to operate in states in which it is currently live.
“With a favourable fourth quarter sports calendar and strong marketing execution, DraftKings was able to generate tremendous customer acquisition and engagement that propelled us to $322m in fourth quarter revenue, a 98 per cent year over year increase,” said Jason Robins, DraftKings’ co-founder, CEO and Chairman of the Board.
“In the fourth quarter of 2020, we saw MUPs increase 44 per cent to 1.5m and ARPMUP increase 55 per cent to $65. We are raising our revenue outlook for 2021 due to our expectation for continued growth, the outperformance of our core business and newly launched states that were not included in our previous guidance.”
DraftKings expanded its footprint to include mobile sports betting in Tennessee in the fourth quarter of 2020. In 2021, DraftKings launched mobile sports betting and iGaming in Michigan and mobile sports betting in Virginia.