DraftKings jumps 8% as sports-betting company forecasts $1 billion in revenue for 2021

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DraftKings jumped as high as 8% to $62 a share after upgrading its 2021 forecasts and reporting a flood of new users during the fourth quarter.

The sports betting company upgraded its revenue expectations for 2021 to a range of $900 million-$1 billion, up from $750 million-$850 million. The company said this forecast increase reflects strong fourth quarter performance, an increase in new users, and the launch of mobile sports betting in Michigan and Virginia.

“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,” CEO Jason Robins said in a statement.

DraftKings said this forecast is contingent on all professional and college sports events including the NCAA’s March Madness, NBA playoffs, and NHL playoffs going forward as planned.

The sports betting firm also reported a 44% increase in monthly unique players to 1.5 million, above the highest analyst forecast of 1.45 million, according to Bloomberg. 

A rise in the number of states that permit legal gambling is likely to blame for that user surge. 

Additionally, DraftKings posted a 146% increase in revenue during the fourth quarter, bringing in $322 million compared to the $131 million during the same period in 2019. 

Following the successful launches in Michigan and Virginia in 2021, DraftKings now operates mobile sports betting in 12 states, more than any other company in the industry. 

Shares pared back earlier gains and were trading around $59 as of 10:33 a.m. ET. DraftKings is up 27% year-to-date.

Read the original article on Business Insider