DraftKings shares fall after monthly users fall below estimates

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DraftKings Stocks closed 28% on Friday after the sports betting company reported slower monthly customer growth in the third quarter, below estimates.

The company, however, raised its revenue forecast for the year, after revenue in the quarter beat Wall Street expectations. Its loss for the period was not as strong as expected.

For the quarter ended Sept. 30, DraftKings said its monthly unique paying customers grew to 1.6 million, up about 22% from 1.3 million a year ago. That was less than the 2 million forecast by analysts, according to StreetAccount, and slower than in the previous two quarters.

DraftKings said the expansion of its online sports betting product, which launched in September, will help drive customer acquisition, engagement and retention.

Following the launch of its online Sportsbook in Kansas in September, DraftKings said it was live with mobile sports betting in 18 states, representing approximately 37% of the US population. It said it plans to launch in Maryland, Puerto Rico, Ohio and Massachusetts pending licensing and regulatory approvals.

“Our team continued to drive revenue growth through highly effective customer engagement and compelling product and technology enhancements while remaining focused on our path to profitability,” said Jason Robins, co- founder and CEO of DraftKings.

For the quarter ended Sept. 30, the company reported a net loss of about $450 million, or $1 per share, compared with a loss of $545 million for the same period last year. Analysts had expected a loss of $1.04 per share.

Revenue for the period reached $502 million, which was higher than the $437 million expected by Wall Street.

The company raised its 2022 revenue forecast to a range of $2.16 billion to $2.19 billion, up from its previous estimate of between $2.08 billion and $2.18 billion. dollars.

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