DraftKings Inc. (NASDAQ: DKNG) reported its second-quarter financial results before the markets opened on Friday. The sports betting firm said that it had a net loss of $0.55 per share and $71.0 million in revenue. That compares with consensus estimates that called for a net loss of $0.19 per share on $66.4 million.
In the second quarter, DraftKings launched sports betting in Colorado and iGaming in Pennsylvania. Since the close of the quarter, DraftKings has launched sports betting in Illinois and iGaming in West Virginia. DraftKings is working to enter Virginia and Tennessee for sports betting and Michigan for sports betting and iGaming. All three states have passed legislation.
As sporting events began to resume, the firm 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 books, the company ended the quarter with $1.2 billion in cash and no debt. The firm added over $800 million to its balance sheet via a follow-on equity offering in June.
DraftKings issued fiscal year 2020 pro forma revenue guidance of $500 million to $540 million. 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. DraftKings at this time does not anticipate an impact to its long-term plans due to COVID-19.
As a result, analysts are calling for a net loss of $0.63 per share and $496.36 million in revenue for the fiscal full year.
DraftKings stock pulled back more than 7% early Friday to $33.36, in a post-IPO range of $9.78 to $44.79. Analysts have a consensus price target of $46.82.