DraftKings has posted its financial results for the second quarter of 2020 for the three months ended June 30, 2020. The firm reported GAAP revenue of $71m compared to $57m during the same period in 2019. For the six-month period, the company generated revenue of $159.5m versus $125.5m year-on-year.
Overall, the company showed a net loss of $161.4m in Q2 2020 compared with a net loss of $28.1m in the corresponding period in 2019.
On a pro forma basis, including the effect of the company’s business combination with SBTech and Diamond Eagle Acquisition Corp (as if it had been completed on January 1, 2019), revenue would have been $75m in the second quarter of 2020, compared to $83m during the same period in 2019.
The operator ended the second quarter of 2020 with over $1.2bn in cash and no debt on its balance sheet.
Co-Founder and CEO Jason Robins told investors: “We believe that the best product will ultimately win with the American consumer. As a technology first organization, we will continue to focus on bringing new and innovative products to market that strengthen our engagement with customers and maintain our competitive differentiation.”
As a result of a successful follow-on equity offering in June and the exercise of public warrants following DraftKings’ call for redemption, the company added over $800m to its balance sheet and ended the second quarter with over $1.2bn in cash and no debt.
The company said in its update that it is well positioned to continue to deliver on its key priorities which include entering new states at the earliest opportunity, investing in product and technology to create new offerings for American sports and American sports fans, and acquiring and retaining customers.
It stated: “In the second quarter, while several major sports leagues including the NBA, MLB and the NHL remained on hiatus due to COVID-19, the company worked creatively to engage fans with new fantasy sports and betting products for NASCAR, golf, UFC, and European soccer.
“As sporting events began to resume, the company saw increased engagement with its sports-based product offerings, which contributed to sequential monthly revenue improvement during the second quarter. This positive momentum has accelerated with the return of MLB, the NBA, WNBA, the NHL, and MLS.”
On the outlook, DraftKings reported that it is introducing fiscal year 2020 pro forma revenue guidance of $500m to $540m which equates to year-over-year pro forma revenue growth of 22% to 37% in the second half of 2020. “This guidance assumes that the professional sports calendar remains as currently contemplated and that DraftKings operates in the states in which it is currently live,” it added.
The firm also advised that as of now it does not anticipate an impact to its long-term plans due to COVID-19.