DraftKings stock dives after wider-than-expected loss and revenue miss

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Shares of DraftKings Inc. DKNG, -2.37% dropped 5.2% in premarket trading Friday, after the digital sports entertainment and gaming company reported third-quarter loss that surprisingly widened and revenue that missed forecasts, as cost of revenue and marketing spending jumped. The net loss widened to $545.0 million, or $1.35 a share, from $395.7 million, or $1.11 a share, in the year-ago period. The FactSet per-share loss consensus of 98 cents, and a GAAP consensus of $1.09. Revenue grew 60.2% to $212.82 million, below the FactSet consensus of $236.9 million, as cost of revenue jumped 76.8% to $170.75 million and sales and marketing spending climbed 49.3% to $303.66 million. “On a same state basis and taking into consideration lower than expected hold primarily due to NFL game outcomes, third quarter revenue would have been $40 million higher,” the company stated. Monthly unique payers (MUP) rose 31% and average revenue per MUP increased 38% to $47. The company revised its 2021 revenue outlook to $1.24 billion to $1.28 billion from $1.21 billion to $1.29 billion, but the outlook was below the FactSet consensus of $1.29 billion. The stock has slid 11.5% over the past three months through Thursday, while the S&P 500 SPX, +0.37% has gained 5.7%.

This article was originally published by Marketwatch.com. Read the original article here.

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