DraftKings Inc has published its financial results for the third quarter of 2021, declaring a 60% revenue improvement year-over-year and continued user growth and engagement.
For Q3, ending September 30, 2021, DraftKings reported revenue of $213m, an increase of 60% compared to $133m during the same period in 2020.
The firm also stated it delivered strong growth in monthly unique players (MUPs) and average revenue per player MUP (ARPMUP) in Q3 2021 without contribution from the NBA and NHL, which resumed their respective seasons in Q3 2020 following suspension due to COVID-19.
Jason Robins, Co-Founder, CEO, and Chairman of the Board, commented: “DraftKings had a strong third quarter that highlights our team’s unique ability to drive engagement with our core customers while simultaneously launching new states and verticals and completing the complex migration to our own in-house technology ahead of schedule.
“Since migrating, we have rapidly added innovative features and functionality to our top-ranked mobile sports betting app. We are also excited that our new growth initiatives, including DraftKings Marketplace and our content and media business, demonstrated promising early results in the quarter.”
DraftKings is now live with mobile sports betting in 15 states following successful launches in Wyoming, Arizona, and Connecticut, and is now live with igaming in five states following a successful launch in Connecticut.
MUPs increased 31% compared to Q3 2020. On average, 1.3 million monthly unique paying customers engaged with DraftKings during each month of the third quarter, which the firm says ‘reflects strong unique payer retention and acquisition across our sportsbook and igaming product offerings’.
DraftKings’ ARPMUP was $47 in Q3 2021, representing a 38% increase over Q3 2020. The firm noted ARPMUP benefitted from ‘continued mix shift into our sportsbook and iGaming product offerings’, as well as cross-selling customers into more products and stronger product vertical engagement.
CFO Jason Park added: “Fundamental user acquisition, retention, and engagement trends in the third quarter were outstanding across all of our online gaming products. We delivered $213m in third quarter revenue which represents a 60% year-over-year increase.
“On a same state basis and taking into consideration lower than expected hold primarily due to NFL game outcomes, third quarter revenue would have been $40m higher. Our key performance indicators also continued to grow, as Monthly Unique Payers increased by 31% and Average Revenue Per Monthly Unique Payer grew by 38%.”
As a result of their strong financials, DraftKings is increasing the midpoint of its fiscal year 2021 revenue guidance to $1.26bn and narrowing the guidance range of $1.21bn to $1.29bn to a range of $1.24bn to $1.28bn, equating to YoY growth of 93% to 99%.
This guidance reflects strong results year-to-date, completed new state launches, and the company’s ability to engage users and acquire customers efficiently and does not include the impact of any new state launches after November 5, 2021.
The firm’s 2021 revenue guidance also includes a $25m negative revenue impact primarily due to customer-friendly NFL event outcomes in October.
DraftKings is also introducing 2022 revenue guidance of $1.7bn to $1.9bn, equating to 43% YoY growth based on the midpoints of its 2021 revenue guidance range and its 2022 revenue guidance range. The range is based on the same assumptions used for the firm’s 2021 guidance, including no impact from any new state launches after November 5.