{"id":144954,"date":"2020-08-14T10:05:18","date_gmt":"2020-08-14T17:05:18","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=144954"},"modified":"2020-08-14T12:12:41","modified_gmt":"2020-08-14T19:12:41","slug":"draftkings-stumbles-following-q2-loss-but-revenue-forecast-impresses","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/draftkings-stumbles-following-q2-loss-but-revenue-forecast-impresses\/","title":{"rendered":"DraftKings Tumbles as Q2 Loss Exceeds Estimates, Forecasts Full Year Revenue up to $540 Million"},"content":{"rendered":"

DraftKings (NASDAQ:DKNG) stock is sinking Friday after the sportsbook operator reported a wider-than-expected second-quarter loss.<\/p>\n

\"DraftKings
Because its sportsbooks were empty for most of the June quarter, DraftKings posted a big loss. But there’s some good news, too. (Image: CNN<\/em>)<\/figcaption><\/figure>\n

But the company did confirm there’s pent-up demand for sports wagering following the coronavirus shutdown and issued a full-year revenue forecast of $500 million to $540 million.<\/p>\n

For the June quarter, the daily fantasy sports (DFS) purveyor said it lost $161.4 million, or 55 cents a share, down from a loss of $28.1 million, or 15 cents a share, a year earlier. Turnover surged to $70.9 million from $57.4 million. Analysts expected a loss of 20 cents on revenue of $66.4 million.<\/strong><\/p>\n

In the June quarter, sportsbook operators contended with the loss<\/a> of NBA, MLB, and the NHL, leaning on international sports, golf, NASCAR, and UFC to keep bettors interested.<\/p>\n

As sporting events began to resume, the Company saw increased engagement with its sports-based product offerings, which contributed to sequential monthly revenue improvement during the second quarter,\u201d according to a DraftKings statement. \u201cThis positive momentum has accelerated with the return of MLB, the NBA, WNBA, the NHL, and MLS.\u201d<\/p><\/blockquote>\n

The operator’s 2020 pro forma revenue guidance of $500 million to $540 million implies growth of 22 percent to 37 percent in the second half of this year and \u201cassumes that the professional sports calendar remains as currently contemplated.\u201d<\/strong><\/p>\n

That revenue guidance doesn’t include college sports, though DraftKings is hopeful NCAA competitions will occur this year. Earlier this week, the Big 10 and PAC-12<\/a> postponed football, with the latter also delaying basketball games until at least January. College football and basketball are two of the most wagered-on sports in the US.<\/p>\n

Reasons to Cheer<\/h2>\n

While some analysts and investors are concerned about the June quarter, it’s widely expected that DraftKings won’t be profitable on earnings before interest, taxes, depreciation, and amortization (EBITDA) basis until 2022 or 2023, and the company still has plenty of supporters<\/a>.<\/p>\n

\n

In a note to clients after the earnings report, Jefferies analyst David Katz said the big news isn’t the second-quarter loss, but rather the strong revenue guidance. He maintains the view that online casinos and sports betting are the places to be in the gaming space, and that with the benefit of first-mover advantage, DraftKings will ultimately prove successful.<\/p>\n<\/div>\n

During the April through June period, the company went live with sports betting in Colorado and rolled out an internet casino in Pennsylvania.<\/p>\n

\u201cSince the close of the second quarter, DraftKings has launched sports betting in Illinois and iGaming in West Virginia. DraftKings is working to enter Virginia and Tennessee for sports betting and Michigan for sports betting and iGaming,\u201d according to the operator.<\/p>\n

Strong Cash Position<\/h2>\n

While some investors may not be thrilled by DraftKings’ consistent string of quarterly losses, the operator’s balance sheet is strong.<\/p>\n

Following a secondary share offering and warrant redemption, the company added $800 million to its balance sheet in the second quarter, bringing its cash stockpile to $1.2 billion, or 10 percent of its market capitalization entering Friday. DraftKings carries no debt.<\/strong><\/p>\n

Additionally, insiders are bullish on the stock. Regulatory filings released in advance of today’s earnings report indicate co-founders Jason Robins, Paul Liberman, and Matthew Kalish recently bought DraftKings equity.<\/p>\n","protected":false},"excerpt":{"rendered":"

DraftKings (NASDAQ:DKNG) stock is sinking Friday after the sportsbook operator reported a wider-than-expected second-quarter loss. But the company did confirm there’s pent-up demand for sports wagering following the coronavirus shutdown and issued a full-year revenue forecast of $500 million to $540 million. For the June quarter, the daily fantasy sports (DFS) purveyor said it lost […]<\/p>\n","protected":false},"author":46,"featured_media":144956,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,1074],"tags":[],"acf":[],"yoast_head":"\nDraftKings Stumbles Following Q2 Loss, But Revenue Forecast Impresses<\/title>\n<meta name=\"description\" content=\"DraftKings stock was punished following a bigger-than-expected second-quarter loss, but revenue guidance and a strong cash position look good.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DraftKings Stumbles Following Q2 Loss, But Revenue Forecast Impresses\" \/>\n<meta property=\"og:description\" content=\"DraftKings stock was punished following a bigger-than-expected second-quarter loss, but revenue guidance and a strong cash position look good.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/draftkings-stumbles-following-q2-loss-but-revenue-forecast-impresses\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2020-08-14T17:05:18+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-08-14T19:12:41+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/dkng2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stumbles-following-q2-loss-but-revenue-forecast-impresses\/\",\"url\":\"https:\/\/www.casino.org\/news\/draftkings-stumbles-following-q2-loss-but-revenue-forecast-impresses\/\",\"name\":\"DraftKings Stumbles Following Q2 Loss, But Revenue Forecast Impresses\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stumbles-following-q2-loss-but-revenue-forecast-impresses\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stumbles-following-q2-loss-but-revenue-forecast-impresses\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/dkng2.jpg\",\"datePublished\":\"2020-08-14T17:05:18+00:00\",\"dateModified\":\"2020-08-14T19:12:41+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"DraftKings stock was punished following a bigger-than-expected second-quarter loss, but revenue guidance and a strong cash position look good.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stumbles-following-q2-loss-but-revenue-forecast-impresses\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/draftkings-stumbles-following-q2-loss-but-revenue-forecast-impresses\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stumbles-following-q2-loss-but-revenue-forecast-impresses\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/dkng2.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/dkng2.jpg\",\"width\":1200,\"height\":675,\"caption\":\"Because its sportsbooks were empty for most of the June quarter, DraftKings posted a big loss, but there's some good news, too. 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