DraftKings reports 146% growth in 2020 revenue to $322m

Image source: DraftKings

DFS and sportsbook operator DraftKings has posted its 2020 Q4 and full-year financial results for the period ended December 31, 2020, reporting revenue ahead by 146% to $322m (2019: $131m).

After giving pro forma effect to the business combination with SBTech (Global) Limited and Diamond Eagle Acquisition Corp, which was completed on April 23, 2020, as if it had occurred on January 1, 2019, revenue grew 98% compared to the three months ended December 31, 2019.

Co-founder, CEO and Board Chairman Jason Robins told investors: “With a favorable fourth quarter sports calendar and strong marketing execution, DraftKings was able to generate tremendous customer acquisition and engagement that propelled us to $322m in fourth quarter revenue, a 98% year over year increase.

“In the fourth quarter of 2020, we saw monthly unique payers (MUP) increase 44% to 1.5 million and average revenue per monthly unique payers (ARPMUP) increase 55% to $65. We are raising our revenue outlook for 2021 due to our expectation for continued growth, the outperformance of our core business and newly launched states that were not included in our previous guidance.”

The MUP increase reflects, said the firm, strong unique payer retention and acquisition across DFS, OSB and igaming. For 2020, MUPs increased 29%, which includes the impact of COVID-19 on its MUPs for sportsbook and DFS primarily during the second quarter and early in the third quarter.

Explaining more about the increasing 2021 revenue guidance, the company said it will raise the projection from a range of $750m to $850m to a range of $900m to $1bn, which equates to year-over-year growth of 40% to 55% and a 19% increase compared to the midpoint of its previous guidance.

It stated: “The increase reflects strong performance in the fourth quarter of 2020, substantial user activation due to the effectiveness of our 2020 marketing spend, and the launch of mobile sports betting and igaming in Michigan and mobile sports betting in Virginia.

“This guidance also assumes that all professional and college sports calendars that have been announced come to fruition and that we continue to operate in states in which we are live today.”

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