DraftKings Inc announced a 253 percent increase in sales in its first quarter financial results for the trading period ending March 31, 2021, with $312 million compared to $89 million the previous year.
Revenue increased 175 percent in Q1 2020 after pro forma effecting the business combination between SBTech and Diamond Eagle Acquisition Corp, which was completed on April 23, 2020, as if it had happened on January 1, 2019.
Jason Robins, co-founder, CEO, and Board Chairman, told investors: “DraftKings is off to an outstanding start in 2021. We continued to make progress and remain on track with the migration to our own in-house proprietary sports betting engine, strengthened our content and technology capabilities with the acquisitions of VSiN and BlueRibbon Software, and invested in further differentiating our product offering with the upcoming rollout of social functionality in our DFS and mobile Sportsbook apps.”
Jason Park, CFO, added: “Our $312m in first quarter revenue, 114 percent increase in MUPs and 48 percent growth in average revenue per monthly unique payer (ARPMUP) reflect solid customer acquisition and retention as well as successful launches of mobile sports betting and igaming in new states. We are raising our revenue outlook for 2021 due to the outperformance of our core business in the first quarter and our expectation for continued healthy growth.”
MUPs for DraftKings’ B2C segment grew by 114 percent in the first quarter of 2020, with 1.5 million monthly unique paying customers engaged on average. The rise is due to high unique payer retention and acquisition through daily fantasy sports, online sports betting, and igaming, according to the company.
Increased fiscal year outlook
DraftKings also announced that it is increasing its fiscal year 2021 revenue outlook from $900 million to $1 billion to $1.05 billion to $1.15 billion, representing a 63 percent to 79 percent year-over-year rise and a 16 percent increase over the midpoint of its previous guidance.
The firm said: “The increase reflects solid performance in the first quarter of 2021, continued strong user activation due to the effectiveness of our marketing spend, well-executed launches of mobile sports betting and igaming in Michigan and mobile sports betting in Virginia, and a modest contribution from our recently completed acquisitions.
“This guidance also assumes that all professional and college sports calendars that have been announced come to fruition and that we continue to operate in states in which we are live today.