- DraftKings clears $312 million in the first quarter of 2021.
- The company has increased its revenue guidance from $900 million to $1.15 billion.
- The outperformance of the initial goal set has created optimism within the country.
BOSTON – Popular sports betting and daily fantasy sports (DFS) company DraftKings has seen major successes already in 2021, with its Q1 revenue report showing exceeded results.
This has led to the company raising its revenue guidance for the year, with an expectation that they will outperform initial estimates at the end of 2021.
DraftKings has 1.5 million monthly users across the multiple markets it is active in, allowing the company to remain a top legal sports betting entity in the market.
DraftKings raises full-year guidance, expecting a return in sports https://t.co/pdCOruBGNB
— CNBC (@CNBC) May 7, 2021
DraftKings initially set the target revenue guidance between $900 million and $1 billion. After the Q1 report showed $312 million in revenue, the guidance was increased to between $1.05 billion and $1.15 billion.
The Q1 result is a 114% increase in monthly unique players (MUPs) and shows a 48% growth in average revenue per MUP (ARPMUP). This comes from a solid customer base where multiple unique accounts logging on regularly and partake in wagering from either sports betting, DFS, or iGaming properties.
“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.”
The report showed a strong success from the launch of its sports betting product in Michigan and Virginia. DraftKings Sportsbook is now live in 12 states with online and mobile betting, giving them a 25% market hold.
DraftKings is also available with its iGaming online casino products in 4 states, giving them a 10% market hold in the US.
“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,” said Jason Park, DraftKings’ Chief Financial Officer.
If DraftKings continues the trend of launching in new markets and seeing major successes early, then they could easily clear the new revenue guidance threshold.
The year-over-year growth of the company has would be between 63% and 79% should they meet the new goals. This is coming after their first full year of being a publicly-traded company.
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