DraftKings reports 44% revenue growth and reduced losses, but fails to meet expectations.

• DraftKings posted fourth-quarter results that missed Wall Street’s estimates on Thursday.
• The sports betting company saw 44% growth in revenue year-over-year.
• DraftKings also reported a 37% increase in monthly unique payers.

Wall Street estimates were missed on both the top and bottom lines in the quarterly results posted on Thursday, despite a 44% increase in revenue.

On Friday, CNBC reported that unfavorable NFL game outcomes negatively impacted DraftKings CEO Jason Robins during the quarter.

Since we've been a public company, we've had the worst two-week run of NFL outcomes, according to Robins. The nature of our business involves taking risks on sports outcomes, which results in customer-friendly outcomes that eventually swing back over time.

Although the company faced difficulties, Robins emphasized that the customer experience exceeded expectations.

The company has revised its fiscal year 2024 guidance range from $350 million to $450 million to between $410 million and $510 million.

Although we experienced some unfavorable sports results, that's just part of the game," Robins stated. "This setback gave us the confidence to boost our bottom line guide by 15% for this year.

The company's guidance does not include the estimated impact of plans to acquire lottery app Jackpocket for approximately $750 million, which was announced after the bell Thursday.

Jackpocket is a distinctive resource, according to Robins. It operates in the lottery sector, which is one of the oldest forms of gambling in the U.S. and has a significant customer base with a vast market potential.

According to analyst estimates compiled by LSEG, formerly known as Refinitiv, DraftKings' performance in the fourth quarter differed from Wall Street's expectations.

• Loss per share: 10 cents vs. expected profit of 8 cents
• Revenue: $1.23 billion vs. $1.24 billion expected

The sports betting company saw a 44% increase in revenue year-over-year.

In the last three months of 2023, DraftKings reported a net loss of $44.6 million, an improvement from the $242.7 million loss in the same period a year earlier. The loss per share decreased from 53 cents in 2022 to 10 cents in 2023.

DraftKings reported a profit of 29 cents per share after adjusting for one-time items.

In the fourth quarter of 2022, DraftKings experienced a 6% increase in average revenue per monthly unique payer (MUP) compared to the previous year. Additionally, the company's monthly unique payer count increased by 37% from the same period in 2022, with an average of 3.5 million payers.

DraftKings has recently introduced its Sportsbook product in Maine and Vermont, increasing the number of states where its mobile sports betting is available to 24.