Following the release of DraftKings‘ fourth-quarter and full year 2021 earnings results, shares took a massive hit. Even though revenue growth came in ahead of expectations (even if it was less than anticipated), investors were disappointed with how poorly management expects 2020 will perform overall; causing DKNG’s stock price to sell at close 79% below its 52 week high leaving shareholders having two decisions: is this company good deal or bad luck?
Draftkings’ earnings report
In the fourth quarter of 2021, DraftKings brought in revenue worth $473 million, a level that rose 47% year over year and exceeded analyst expectations by an estimated margin. The company’s losses also narrowed considerably compared to last forecast with profits coming at just under 4%.
DraftKings’ forecast for an adjusted EBITDA loss between $825 million and $925 million is an increase over 2021’s negative earnings outlook. The company managed to raise their revenue prediction in the range of 1-2 B but traders showed disappointment by selling DFK stock down 18%.
Where the report leaves DraftKings
The growth story at this company just keeps getting better. They ended 2021 with almost 2 million monthly unique players, up from 1.5 million a year earlier and those users are also spending more money on average – their revenue per month went up by over 10% to $77 in Q4 211 compared to previous quarter which saw numbers closer towards 65 dollars.