Shares of DraftKings’ (NASDAQ: DKNG) slid in pre-market trading on Friday even as the online betting company delivered an upbeat third quarter. The company’s revenues surged 136% year-over-year to $502 million, exceeding Street estimates by $64.8 million.
Adjusted loss before interest, taxes, depreciation, and amortization narrowed down to $264.2 million in Q3 versus an adjusted loss of $313.6 million in the same period last year.
Jason Park, DraftKings’ CFO stated, “We are increasing the midpoint of our fiscal year 2022 revenue guidance by $45 million and improving the midpoint of our fiscal year 2022 Adjusted EBITDA guidance by $10 million, which is a meaningful improvement given our prior fiscal year 2022.”
The company now expects an adjusted EBITDA loss in FY23 in between $575 million and $475 million, far larger than Wall Street expectations of $426 million.
Park added, “Adjusted EBITDA guidance did not include our launch in Kansas on September 1, 2022, or fourth quarter investments ahead of our expected launches in Maryland and Ohio, pending licensure and regulatory approvals. We are also introducing 2023 guidance for revenue and Adjusted EBITDA which reflects our continued balance between driving attractive revenue growth and meaningfully improving our Adjusted EBITDA.”
