DraftKings' stock price drops 21% on 2022 outlook.

• DraftKings beat estimates in its fourth quarter earnings report.
• The company's adjusted EBITDA loss for 2022 was much higher than anticipated, causing shares to fall.
• In the current quarter, the company experienced a rise in operating expenses compared to the previous period.

On Friday, shares of fell 21.6% after the company posted fourth-quarter earnings that exceeded analyst expectations but disclosed a larger adjusted loss for 2022 than anticipated.

Here’s what the company reported:

• According to a Refinitiv survey of analysts, the estimated loss per share is 81 cents, compared to the actual loss per share of 35 cents.
• Revenue: $473 million vs $445 million estimated, according to Refinitiv

According to StreetAccount, DraftKings projected an adjusted EBITDA loss for 2022 between $825 million and $925 million, significantly higher than the estimated adjusted EBITDA loss of $572.7 million.

As the company expanded into new markets, its marketing expenses increased, resulting in a larger operational loss. In 2021, the company spent $981.5 million on marketing, compared to $495.1 million in 2020.

In Q4, total adjusted operating expenses increased to $601 million from $526 million in Q3.

DraftKings has revised its revenue forecast for 2022 from a range of $1.7 billion to $1.9 billion to a range of $1.85 billion to $2 billion. The company attributed the change to the launch of mobile sports betting in New York and Louisiana at the beginning of the year.