{"id":240992,"date":"2022-11-04T08:55:02","date_gmt":"2022-11-04T13:55:02","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=240992"},"modified":"2023-04-20T08:28:09","modified_gmt":"2023-04-20T13:28:09","slug":"draftkings-stock-slumps-on-2023-ebitda-loss-outlook","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/draftkings-stock-slumps-on-2023-ebitda-loss-outlook\/","title":{"rendered":"DraftKings Dives on Weak 2023 Forecast, Lingering Losses"},"content":{"rendered":"

DraftKings (NASDAQ: DKNG) stock tumbled in early trading Friday after the sportsbook operator issued tepid 2023 guidance, including a larger-than-expected loss.<\/p>\n

\"DraftKings
Inside a DraftKings office. The stock tumbled Friday as the company issued weak 2023 guidance. (Image: Wall Street Journal<\/em>)<\/figcaption><\/figure>\n

While the gaming company lifted its 2022 guidance, its 2023 earnings before interest, taxes, depreciation and amortization (EBITDA) spooked Wall Street. DraftKings<\/a> is forecasting an EBITDA loss of $475 million to $575 million next year, well ahead of the consensus estimate of $426 million.<\/p>\n

\n

The Boston-based firm said its goal is to turn EBITDA profitable in the fourth quarter of 2023. But that wasn\u2019t enough to allay analysts\u2019 concerns about the company\u2019s money-losing<\/a> ways. DraftKings lost $450.5 million in the July through September period, bringing its loss for the first nine months of 2022 to $1.14 billion.<\/p>\n<\/div>\n

The daily fantasy sports (DFS) giant issued 2023 revenue guidance of $2.8 billion to $3.0 billion, or 33% year-over-year growth at the midpoint of that range. DraftKings\u2019 upped 2022 and new 2023 guidance assumes the launch of mobile sports wagering in Maryland<\/a> in the current quarter, \u201cOhio<\/a> and Massachusetts<\/a> in the first quarter of 2023, and in Puerto Rico in the third quarter of 2023.\u201d<\/p>\n

DraftKings’ Lack of Profitability Proves Problematic<\/h2>\n

Analysts and investors have long decried DraftKings’ inability to turn a profit and the lengthy timeline the company offered for when that ominous status will change.<\/p>\n

\n

Compounding those woes is the point that rivals Barstool Sportsbook, BetMGM, and Caesars Sportsbook<\/a> are trimming losses and flirting with profitability and that FanDuel notched a profitable quarter from April through June. There\u2019s talk that, if not for their significant exposure to the Houston Astros potentially winning the World Series, Barstool and Caesars Sportsbook would likely have been profitable in October.<\/p>\n<\/div>\n

Suppose there’s a silver lining to what the investment community perceives as a downbeat report. In that case, there\u2019s mounting evidence of more rational spending by DraftKings and the rest of the online sports wagering industry.<\/p>\n

\u201c3Q22 results further affirm an industry-wide rationalization in the promotional environment, where incumbent industry leaders are collectively reducing promo\/marketing intensity as smaller operators taper back,\u201d <\/strong>wrote Roth Capital analyst Edward Engel in a note to clients on Friday.<\/p>\n

He rates DraftKings stock a \u201cbuy,\u201d with a $25 price target.<\/p>\n

Q3 Recap, 2022 Outlook<\/h2>\n

In the third quarter, DraftKings posted revenue of $502 million, representing year-over-year growth of 136%, on an EBITDA loss of $264 million. That was 18% off analysts\u2019 estimates.<\/p>\n

The company forecasts 2022 revenue of $2.16 billion to $2.19 billion<\/a>, up from prior guidance of $2.08 billion to $2.18 billion. The sportsbook giant pared its 2022 EBTIDA loss estimate to $780 million to $800 million, up from $765 million to $835 million.<\/strong><\/p>\n

\u201cDraftKings is live with mobile sports betting in 18 states that collectively represent approximately 37% of the U.S. population following the launch of its online Sportsbook in Kansas on Sept. 1, 2022,\u201d according to a statement issued by the company. \u201cDraftKings is also live with iGaming in five states, representing approximately 11% of the US population.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

DraftKings (NASDAQ: DKNG) stock tumbled in early trading Friday after the sportsbook operator issued tepid 2023 guidance, including a larger-than-expected loss. While the gaming company lifted its 2022 guidance, its 2023 earnings before interest, taxes, depreciation and amortization (EBITDA) spooked Wall Street. DraftKings is forecasting an EBITDA loss of $475 million to $575 million next […]<\/p>\n","protected":false},"author":46,"featured_media":240993,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,1074],"tags":[81903,80968],"acf":[],"yoast_head":"\nDraftKings Stock Slumps On 2023 EBITDA Loss Outlook<\/title>\n<meta name=\"description\" content=\"DraftKings stock plunged as the company issued concerning 2023 EBITDA loss guidance.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/draftkings-stock-slumps-on-2023-ebitda-loss-outlook\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DraftKings Stock Slumps On 2023 EBITDA Loss Outlook\" \/>\n<meta property=\"og:description\" content=\"DraftKings stock plunged as the company issued concerning 2023 EBITDA loss guidance.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/draftkings-stock-slumps-on-2023-ebitda-loss-outlook\/\" \/>\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=\"2022-11-04T13:55:02+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-20T13:28:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/DKNG.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\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-stock-slumps-on-2023-ebitda-loss-outlook\/\",\"url\":\"https:\/\/www.casino.org\/news\/draftkings-stock-slumps-on-2023-ebitda-loss-outlook\/\",\"name\":\"DraftKings Stock Slumps On 2023 EBITDA Loss Outlook\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-slumps-on-2023-ebitda-loss-outlook\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-slumps-on-2023-ebitda-loss-outlook\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/DKNG.jpg\",\"datePublished\":\"2022-11-04T13:55:02+00:00\",\"dateModified\":\"2023-04-20T13:28:09+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"DraftKings stock plunged as the company issued concerning 2023 EBITDA loss guidance.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-slumps-on-2023-ebitda-loss-outlook\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/draftkings-stock-slumps-on-2023-ebitda-loss-outlook\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-stock-slumps-on-2023-ebitda-loss-outlook\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/DKNG.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/DKNG.jpg\",\"width\":1280,\"height\":640,\"caption\":\"Inside a DraftKings office. 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