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DraftKings Jumps After Raising 2020 Revenue Forecast

(Bloomberg) — DraftKings Inc. surged as much as 10% after raising its 2020 revenue forecast, an indication that the rise of sports betting shows no signs of slowing.The Boston-based company expects revenue in a range of $540 million to $560 million, excluding some items, up from its previous forecast range of $500 million to $540 million, it said in a statement Friday. That would mean year-over-year revenue growth of 25% to 30%.DraftKings said its forecast assumes all announced sports calendars are maintained through the end of the year — and that’s not a sure thing, with coronavirus cases rising rapidly nationwide. College football programs had to cancel or postpone at least 18 games in the first half of November due to Covid-19 outbreaks.One thing to keep an eye on is college basketball. The Ivy League announced Thursday that it was canceling its winter sports season. It was the first conference to shut down sports at the onset of the pandemic. If the Ivy is the canary in the coal mine again, that could weigh on the guidance provided for next year.In the third quarter, DraftKings saw an increase in monthly unique players of 64%, topping 1 million, as major sports leagues like the NBA, MLB and NHL returned. The growth in the number of monthly players, a key metric, showcased the company’s data-driven sales and marketing approach, Chief Executive Officer Jason Robins said in the statement.Third-quarter revenue of $133 million was at the top of the company’s forecast range and beat analysts’ consensus estimate of $131.7 million, as compiled by Bloomberg.DraftKings shares were up 8.4% to $44.70 at 9:39 a.m. in New York. The stock was up 286% for the year through Thursday.(Updates with shares in first and final paragraphs.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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