DraftKings Readies For Investor Day Following Improved Guidance

Written By

Updated on


As DraftKings stock continues to soar despite big losses, the company is set to host a virtual investor day on Tuesday.

The event comes after DraftKings released its fourth-quarter and year-end 2020 results on Feb. 26.

DraftKings Investor Day begins 9 a.m. ET Tuesday.

A look into DraftKings future

Presentations from multiple executives will be included:

A question-and-answer session will follow the presentations. Interested investors can register on the company’s investor relations site, which will also house the presentations following the event.

A big fourth quarter, with a caveat

Fourth-quarter revenue jumped 98% compared to the year prior to $322 million. The quarter also resulted in a big net loss: $266.4 million, up from a $29.15 million loss in the same period a year prior.

Contributing to the revenue growth:

DraftKings spent $192 million on sales and marketing to fuel the growth in the quarter.

With the strong growth figures, DraftKings updated its 2021 revenue guidance from $750 million to $850 million, to $900 million to $1 billion.

Early 2021 positives

After launching mobile registration in Iowa on Jan. 1, the app registered more users in five days than all of 2020.

Later in the month, the company launched mobile betting in Michigan and Virginia. In 12 states, the company has access to 25% of the US population.

On Wednesday, the company announced a partnership with DISH Network to integrate its sportsbook. The integration will allow viewers to bet from the internet-connected TV.

“We’re thrilled to work with DraftKings to amplify the sports-fan experience, and extend the DraftKings footprint across our unique suite of services, including SLING TV and Boost Mobile, with potential applications across our 5G wireless buildout in the future,” DISH TV Group President Brian Neylon said in a release.

DraftKings stock rocketship?

DraftKings is the clubhouse leader of a pack of bullish sports betting stocks that also includes Penn National Gaming and the Score Media and Gaming.

Since going public in April 2020, the stock has surged nearly 250%.

In 2021, it’s grown nearly 50%, including an 18% following its fourth-quarter report.