DraftKings Inc. (Nasdaq: DKNG) (“DraftKings” or the “Company”)
today reported first quarter 2021 financial results.
First Quarter 2021 Highlights
For the three months ended March 31, 2021, DraftKings reported
revenue of $312 million, an increase of 253% compared to $89
million during the same period in 2020. After giving pro forma
effect to the business combination with SBTech (Global) Limited
(“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.”
Jason Park, DraftKings’ Chief Financial Officer, added, “Our
$312 million 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.”
Strong Customer Retention and Acquisition Drove Q1
Results
- Monthly Unique Payers (“MUPs”) for our B2C segment increased
114% compared to the first quarter of 2020. On average, 1.5 million
monthly unique paying customers engaged with DraftKings each month
during the first quarter. The increase reflects strong unique payer
retention and acquisition across Daily Fantasy Sports, Online
Sports Betting and iGaming.
- Average Revenue per MUP (“ARPMUP”) was $61 in the first quarter
representing a 48% increase versus the same period in 2020. Our
ARPMUP was positively impacted by increased engagement with our
iGaming and mobile sports betting product offerings as well as
successful cross-selling.
Increasing 2021 Revenue Guidance
- DraftKings is raising its fiscal year 2021 revenue guidance
from a range of $900 million to $1 billion to a range of $1.05
billion to $1.15 billion, which equates to year-over-year growth of
63% to 79% and a 16% increase compared to the midpoint of our
previous guidance.
- The increase reflects solid performance in the first quarter of
2021, continued strong user activation due to the effectiveness of
our marketing spend, well-executed launches of mobile sports
betting and iGaming in Michigan and mobile sports betting in
Virginia, and a modest contribution from our recently completed
acquisitions. This guidance also assumes that all professional and
college sports calendars that have been announced come to fruition
and that we continue to operate in states in which we are live
today.
- Detailed financial data and other information is available in
DraftKings’ Quarterly Report on Form 10-Q, being filed today with
the Securities and Exchange Commission (the “SEC”), as well as in a
slide presentation that can be accessed through the “Investors”
section of the Company’s website at investors.draftkings.com.
DraftKings Grows Its Mobile Sports Betting and iGaming
Footprint
- In the first quarter of 2021, DraftKings launched mobile sports
betting and iGaming in Michigan and mobile sports betting in
Virginia.
- DraftKings is live with online sports betting in 12 states that
collectively represent 25% of the U.S. population. DraftKings is
live with iGaming in 4 states, representing approximately 10% of
the U.S. population.
- In 2021, 25 state legislatures have introduced legislation to
legalize mobile sports betting, 5 state legislatures have
introduced legislation to expand their existing sports wagering
frameworks and 1 state legislature has introduced legislation to
legalize sports betting limited to retail locations. In addition, 4
states have introduced iGaming legislation and 3 states have
introduced online poker legislation.
- Three of the states that introduced legislation to legalize
mobile sports betting this year - Wyoming, Arizona and New York -
have already enacted mobile sports wagering laws. Maryland has made
significant progress with a mobile and retail sports wagering bill
passing the legislature and now pending action from the Governor.
The three states that have enacted mobile sports wagering laws this
year represent 8% of the U.S. population and bring the percentage
of the population with legalized mobile sports betting to 35%.
Leadership and Board Updates
- DraftKings announced the appointment of Gisele Bündchen,
environmental activist and philanthropist, as a special advisor to
the Company’s Chief Executive Officer and board of directors for
environmental, social, and governance (“ESG”) initiatives.
- We expanded our executive team with the addition of Brian
Angiolet to oversee and optimize content creation and media
strategy as the Company’s first Chief Media Officer.
Environmental, Social and Governance Initiatives
Continue to Grow
- We undertook a variety of internal and external efforts in
honor of International Women’s Day to support women entrepreneurs
and small business owners throughout March, while also recognizing
the day as an official company holiday for our global employees.
Customer participation in the Women’s History Month Sports
Popularity Pool, which highlighted the greatest athletes and
moments in women’s sports, helped generate $300,000 in total
donations to several U.S. and global organizations focused on
empowering and aiding women entrepreneurs and women-founded small
businesses.
- We raised $184,000 through charity DFS contests in support of
Feeding Texas’ efforts to provide help to those impacted by the
winter storms in Texas.
Product Developments, Content Initiatives and Commercial
Agreements
- The migration to our proprietary in-house back end and trading
technology continues to be on-track for completion by the end of
the third quarter of 2021.
- We are announcing the upcoming rollout of social functionality
to our DFS and mobile Sportsbook apps, marking an industry-first
innovation to create an integrated social community across sports
betting and daily fantasy sports, as fans can interact with each
other within a shared, peer-to-peer environment. The product is
particularly unique because it amplifies our ability to create an
interconnected ecosystem across our consumer products. Features
like universal profiles, friends lists, commenting and
loyalty/rewards will allow DraftKings to connect users across
products.
- We acquired Vegas Sports Information Network, Inc. (VSiN), a
multi-platform broadcast and content company delivering trusted
sports betting news, analysis and data to U.S. sports bettors since
2017.
- We acquired BlueRibbon Software Ltd., a leading global jackpot
and gamification company that provides platform-agnostic, real-time
gamification tools that allow for fully customizable jackpot
promotions.
- We announced an agreement with DISH Network to bring
DraftKings’ sportsbook and daily fantasy experiences directly to
DISH customers nationwide, beginning with a first-of-its-kind and
patent-pending DraftKings app integration on the DISH TV Hopper
platform. The agreement also provided for the subsequent launch of
SLING TV’s new exclusive sports betting information channels in
collaboration with DraftKings. SLING TV subscribers and SLING Free
users can now view real-time game scores and betting odds on the
DraftKings Basketball, Baseball and Hockey channels. SLING TV will
continue to bring the DraftKings sports betting experience to
customers with more sports and expanded offerings in the
future.
- DraftKings became UFC’s first-ever “Official Sportsbook and
Daily Fantasy Partner” in the United States and Canada and will now
be able to offer in-game promotions, activations, in-broadcast odds
integrations and UFC branding across its daily fantasy and betting
products and will possess rights to use official UFC marks and
logos.
Webcast and Conference Call DetailsDraftKings
will host a conference call and audio webcast today at 8:30 a.m.
EDT, during which management will discuss the Company’s first
quarter results and provide commentary on business performance. A
question and answer session will follow the prepared remarks.
The conference call may be accessed by dialing (833) 644-0686
for domestic callers or (918) 922-6762 for international callers.
Once connected with the operator, please provide the conference ID
of 8667046.
A live audio webcast of the earnings conference call may be
accessed on the Company’s website at investors.draftkings.com,
along with a copy of this press release, the Company’s Form 10-Q
filing, and a slide presentation. The audio webcast and
accompanying presentation will be available on the Company’s
investor relations website until 11:59 p.m. EDT on June 14,
2021.
About DraftKings
DraftKings Inc. is a digital sports entertainment and gaming
company created to fuel the competitive spirit of sports fans with
products that range across daily fantasy, regulated gaming and
digital media. Headquartered in Boston, and launched in 2012 by
Jason Robins, Matt Kalish and Paul Liberman, DraftKings is the only
U.S.-based vertically integrated sports betting operator.
DraftKings is a multi-channel provider of sports betting and gaming
technologies, powering sports and gaming entertainment for 50+
operators in 17 countries. DraftKings’ Sportsbook is live with
mobile and/or retail betting operations in the United States
pursuant to regulations in Colorado, Illinois, Indiana, Iowa,
Michigan, Mississippi, New Hampshire, New Jersey, New York, Oregon,
Pennsylvania, Tennessee, Virginia and West Virginia. DraftKings’
daily fantasy sports product is available in 7 countries
internationally with 15 distinct sports categories. DraftKings is
the official daily fantasy partner of the NFL, MLB, NASCAR, PGA
TOUR and UFC as well as an authorized gaming operator of the NBA
and MLB, an official betting operator of the PGA TOUR and the
official betting operator of UFC. DraftKings also owns Vegas Sports
Information Network, Inc. (VSiN), a multi-platform broadcast and
content company.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, or the Securities Act, and Section 21E of the Securities
Exchange Act of 1934, as amended, or the Exchange Act, about us and
our industry that involve substantial risks and uncertainties. All
statements other than statements of historical facts contained in
this press release, including statements regarding guidance, our
future results of operations or financial condition, our strategic
plans and focus, user growth and engagement, product initiatives,
the objectives of management for future operations, and the impact
of COVID-19 on our business and the economy as a whole, are
forward-looking statements. In some cases, you can identify
forward-looking statements because they contain words such as
“anticipate,” “believe,” “contemplate,” “continue,” “could,”
“estimate,” “expect,” “forecast,” “going to,” “intend,” “may,”
“plan,” “potential,” “predict,” “project,” “propose,” “should,”
“target,” “will,” or “would” or the negative of these words or
other similar terms or expressions. We caution you that the
foregoing may not include all of the forward-looking statements
made in this press release.
You should not rely on forward-looking statements as predictions
of future events. We have based the forward-looking statements
contained in this press release primarily on our current
expectations and projections about future events and trends,
including the ongoing COVID-19 pandemic, that we believe may affect
our business, financial condition, results of operations, and
prospects. These forward-looking statements are not guarantees of
future performance, conditions or results, and involve a number of
known and unknown risks, uncertainties, assumptions and other
important factors, many of which are outside DraftKings’ control,
that could cause actual results or outcomes to differ materially
from those discussed in the forward-looking statements. Important
factors, among others, that may affect actual results or outcomes
include, but are not limited to, DraftKings’ ability to manage
growth; DraftKings’ ability to execute its business plan and meet
its projections; potential litigation involving DraftKings; changes
in applicable laws or regulations, particularly with respect to
gaming; general economic and market conditions impacting demand for
DraftKings’ products and services; economic and market conditions
in the media / entertainment / gaming / software industry in the
markets in which DraftKings’ operates; the potential adverse
effects of the COVID-19 pandemic on capital markets, general
economic conditions, unemployment and DraftKings’ liquidity,
operations and personnel, as well as the risks, uncertainties, and
other factors described in “Risk Factors” in our filings with the
SEC, which are available on the SEC’s website at www.sec.gov.
Additional information will be made available in other filings that
we make from time to time with the SEC. The forward-looking
statements contained herein are based on management’s current
expectations and beliefs and speak only as of the date hereof, and
DraftKings makes no commitment to update or publicly release any
revisions to forward-looking statements in order to reflect new
information or subsequent events, circumstances or changes in
expectations.
Contacts
Media:
Media@draftkings.com
@DraftKingsNews
Investors:
Investors@draftkings.com
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