DraftKings corrected the impact of the gain on remeasurement of warrant liabilities under Accounting Standards Codification 260 on earnings per share for the quarter ended June 30, 2024. EPS was 10 cents, compared with 12 cents reported in the original press release. The headline "DraftKings 2Q EPS 12c >DKNG" at 4:18 p.m. ET on Aug. 1 and the article "DraftKings Swings to 2Q Profit as Revenue Jumps 26%," at 4:46 p.m. ET on Aug. 1, included the incorrect EPS figure. The correct version of the article follows.
By Victor Swezey
DraftKings swung to a profit in the second quarter as its revenue surged on a 50% increase in monthly unique payers.
The sports-betting company on Thursday posted a profit of $63.8 million, or 10 cents a share, compared with a loss of $77.3 million, or 17 cents a share, in the year-ago quarter.
Stripping out one-time items, earnings per share were 22 cents. Analysts polled by FactSet expected adjusted earnings of 14 cents a share.
Revenue rose 26% to $1.1 billion, compared with analyst expectations of $1.11 billion.
The Boston-based company said monthly unique payers increased to an average of 3.1 million from a year ago, reflecting strong player acquisition and retention, as well as expansion into new jurisdictions and the acquisition of Jackpocket.
DraftKings raised its fiscal year revenue guidance to between $5.05 billion and $5.25 billion from a previous range of $4.8 billion to $5 billion, equating to year-over-year growth of between 38% and 43%. The company lowered its guidance for adjusted earnings before interest, taxes, depreciation and amortization to between $340 million and $420 million from a previous range of $460 million to $540 million.
Write to Victor Swezey at victor.swezey@wsj.com; @vicswezey
(END) Dow Jones Newswires
August 02, 2024 08:04 ET (12:04 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
