DKNG Stock: Over 4% Increase Pre-Market Explanation

By Amit Chowdhry ● May 7, 2021
  • The stock price of DraftKings Inc (NASDAQ: DKNG) increased by over 4% pre-market. This is why it happened.

The stock price of DraftKings Inc (NASDAQ: DKNG) increased by over 4% pre-market. Investors are responding positively to the company’s first quarter 2021 results.

For the 3 months ended March 31, 2021, DraftKings reported revenue of $312 million, an increase of 253% compared to $89 million during the same period in 2020. And 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 175% compared to the 3 months ended March 31, 2020.

KEY QUOTES:

“DraftKings is off to an outstanding start in 2021. We continued to make progress and remain on track with the migration to our own in-house proprietary sports betting engine, strengthened our content and technology capabilities with the acquisitions of VSiN and BlueRibbon Software, and invested in further differentiating our product offering with the upcoming rollout of social functionality in our DFS and mobile Sportsbook apps.”

— Jason Robins, DraftKings’ co-founder, CEO and Chairman of the Board

“Our $312 million in first quarter revenue, 114% increase in MUPs and 48% growth in ARPMUP reflect solid customer acquisition and retention as well as successful launches of mobile sports betting and iGaming in new states. We are raising our revenue outlook for 2021 due to the outperformance of our core business in the first quarter and our expectation for continued healthy growth.”

— Jason Park, DraftKings’ Chief Financial Officer

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.