DraftKings (NASDAQ:DKNG) operates as a digital sports and entertainment and gaming company. It rose to prominence by offering daily fantasy games. This market broke wide open in 2018 after the United States Supreme Court struck down a federal ban on single-game sports betting.
Shares of DraftKings have plunged 49% in 2022 as of close on April 28. The stock is down 75% year over year.
The company released its fourth quarter and full year 2021 earnings on February 18, 2022. In Q4 2021, revenue increased 47% year-over-year to $473 million. It delivered strong revenues even in the face of weaker-than-expected results during the heat of the NFL season. This was due to a string of unexpected NFL game outcomes that punished bookies.
Monthly unique players (MUPs) for its B2C segment jumped 32% from the fourth quarter of 2020. Meanwhile, average revenue per MUP rose 19% from the previous year. In response to this strong earnings report, DraftKings bolstered its fiscal 2022 guidance. The company now projects total revenue between $1.85 billion to $2.0 billion. However, it still expects an adjusted EBITDA loss between $825 million and $925 million.
Several more U.S. states are set to dive into single-game sports betting in the months and years ahead. This will give a boost to DraftKings and its peers. Its shares are trading in favourable value territory compared to its competitors at the time of this writing. The stock last had an RSI of 36, putting it just outside of technically oversold levels.