DraftKings revenue for the first quarter of 2021 exceeds expectations

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DraftKings revenue for the first quarter of 2021 exceeds expectations
Photo: Jason Robins, CEO and chairman of DraftKings

DraftKings reported first quarter revenue of $ 312 million. The iGaming operator has increased the revenue outlook for this year ranging from $ 1.05 billion to $ 1.15 billion and announced the launch of a social feature for DFS (fantasy sports betting) and mobile sports betting apps

The Boston-based betting platform reported huge gains in its financial report and user base, benefiting from the approval of its services in more U.S. states. The company reported a profit of $ 312 million, up 253% compared to $ 89 million during the same period in 2020.

“DraftKings got off to a great start in 2021. We continue to make progress and stay on track by migrating to our own sports betting engine, strengthening our content and technology resources with the acquisitions of VSiN and BlueRibbon Software,” said Jason Robins, CEO and chairman of DraftKings.

Robins added: “We have invested to further differentiate our product offering by implementing social functionality in our sports betting apps for mobile devices and DFS.”

Jason Park, chief financial officer of DraftKings, also said: “Our $ 312 million in first quarter revenue reflects solid customer acquisition and retention, as well as successful launches of mobile sports betting and iGaming in new states.”

Park continued: “We are expanding our revenue outlook for 2021 due to the superior performance of our core business in the first quarter and our expectation of healthy and continuous growth.”

Strong customer retention

Single monthly payers (“MUPs”) for the B2C segment increased 114% compared to the first quarter of last year. On average, 1.5 million monthly single paying customers became involved with DraftKings services during the first quarter.

The growth reflects the strong retention and acquisition of MUPS in online sports betting, fantasy sports betting and iGaming. Average revenue per MUP (“ARPMUP”) was $ 61 in the first three months, representing an increase of 48% compared to the same period in 2020.

In addition, ARPMUP was positively impacted by increased engagement with mobile sports betting and iGaming product offerings, in addition to cross-selling.

New DraftKings Revenue Projection for 2021

DraftKings is expanding its revenue projection for the year 2021 from US $ 900 million to US $ 1 billion to US $ 1.05 billion to US $ 1.15 billion, which is equivalent to an annual growth of 63% to 79 % and up 16% compared to the previous revenue estimate.