DraftKings stock surges after sports-betting company boosts outlook

Shares DraftKings surged Friday morning after the sports-betting company reported stronger-than-expected revenue and raised its outlook for 2023.

The stock closed 15% higher at $20.54, giving it a market value of $8.39 billion.

The bump came on the heels of DraftKings being the most downloaded sportsbook app in the U.S. on Super Bowl Sunday, according to the company. States where sports betting is newly legal are boosting sales, too.

For its fiscal fourth quarter, Draftkings said its revenue of $855 million is an increase of 81% compared to the $473 million it took in during the same period in 2021. It reported a loss of 53 cents per share on revenue of $855 million. Analysts polled by Refinitiv had anticipated a loss of 59 cents per share on revenue of $800 million.

The company attributed the results to continued customer retention, acquisition and engagement in existing states, as well as successful launches of its Sportsbook and iGaming products in additional jurisdictions.

“I am very pleased with how we concluded 2022, with continued top-line growth and a strong focus on expense management,” DraftKings CEO Jason Robins said in a release.

DraftKings is raising its fiscal year 2023 revenue guidance to a range of $2.85 billion to $3.05 billion from the range it announced in November, $2.8 billion to $3 billion. The company said its updated guidance equates to year-over-year growth of 27% to 36%.

DraftKings recently launched in Maryland, Kansas and Ohio.

–CNBC’s Jessica Golden contributed to this report.