DraftKings IncDKNG
▲ PositiveCapitalrelevance
Reaffirmed FY guidance and EBITDA above estimates despite Q2 miss
Impact on stocks 1
Consumer Discretionary
DraftKings IncDraftKings reported second quarter results that missed Wall Street revenue and profit expectations, yet the stock rose as management reaffirmed full-year guidance and highlighted strong customer acquisition. Revenue came in at $1.44 billion versus analyst estimates of $1.51 billion, a 4.6% year-on-year decline, while adjusted EPS of $0.09 missed expectations of $0.19. The company cited a nearly 75% year-over-year increase in customer acquisition driven by the NBA Finals and World Cup, and reconfirmed full-year revenue guidance of $6.7 billion at the midpoint with EBITDA guidance of $800 million, above analyst estimates of $740.7 million. During the earnings call, analysts questioned management about customer overlap between Predictions and Sportsbook, competitive promotional spend, profitability of Predictions customers, cross-sell dynamics, and marketing investment flexibility, with CEO Jason Robins emphasizing minimal overlap, efficient promotions, improved unit economics from vertical integration, and a data-driven approach to spending.
DraftKings IncReaffirmed FY guidance and EBITDA above estimates despite Q2 miss