Earnings To Watch: DraftKings (DKNG) Q3 Report
DraftKings Inc (NASDAQ: DKNG), a leader in fantasy sports and betting, will announce its Q3 results this Thursday afternoon. Last quarter, the company exceeded analysts’ revenue expectations by 5.9%, reporting $1.51 billion, a 36.9% increase year on year.
The quarter was strong overall, with DraftKings beating estimates for adjusted operating income and EBITDA. The company also reported 3.3 million users, marking a 6.5% increase year over year.
Analyst Expectations for Q3
For this quarter, analysts expect revenue to grow by 10.6% year on year to $1.21 billion, a slowdown compared to last year’s 38.7% growth in the same period. An adjusted loss of -$0.26 per share is forecasted.
Analysts have largely maintained their estimates in the past 30 days, indicating confidence that DraftKings will maintain its current trajectory.
Historical Performance and Industry Context
DraftKings has missed Wall Street revenue estimates five times in the last two years. Meanwhile, peers in the gaming solutions sector have reported mixed results:
- Rush Street Interactive posted 19.7% year-on-year revenue growth, beating expectations by 4.3%.
- Accel Entertainment reported a 9% increase in revenues.
Analysts generally anticipate DraftKings to stay the course heading into earnings.
Author's summary: DraftKings prepares to report Q3 earnings amid slowing revenue growth but steady user expansion, while industry peers show varied but positive results.