Shares decline after sports-betting company’s unexpected quarterly loss

  • DraftKings reports surprise loss in Q4
  • Shares drop over 2% in extended session
  • Revenue in line with expectations
  • Company attributes growth to customer engagement and new markets
  • Fiscal 2024 revenue guidance raised
  • Adjusted Ebitda outlook also increased

DraftKings Inc. shares dropped more than 2% in the extended session Thursday after the sports-betting platform surprised Wall Street with a quarterly loss and revenue that was merely in line with expectations. The company reported a loss of $45 million in the fourth quarter, compared to a loss of $243 million in the same period last year. Despite the loss, revenue rose 44% to $1.23 billion, driven by strong customer engagement and expansion into new markets. DraftKings’ CEO, Jason Robins, expressed satisfaction with the company’s performance despite challenging sport outcomes. The company raised its fiscal 2024 revenue guidance and adjusted Ebitda outlook, signaling confidence in future growth. As a result, DraftKings’ stock ended the regular trading day with a 1.3% increase.

Companies Public: DraftKings Inc. (DKNG)
Key People: Jason Robins (Co-founder and Chief Executive)

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Factuality Level: 7
Factuality Just: The article provides information about DraftKings’ quarterly loss and revenue, as well as the company’s performance and guidance. The information seems to be based on the company’s statements and analyst expectations, which can be verified. However, the article lacks in-depth analysis and context, and it does not provide any opposing viewpoints or potential risks. Therefore, while the information presented may be accurate, the article could benefit from more comprehensive reporting.
Noise Level: 3
Noise Just: The article provides relevant information about DraftKings’ quarterly loss and revenue, as well as the company’s performance and guidance. However, it lacks in-depth analysis, evidence, and actionable insights. The article also contains filler content about text-to-speech technology and feedback requests, which are unrelated to the main topic.
Financial Relevance: No
Financial Markets Impacted: No
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Just: The article pertains to financial topics as it discusses DraftKings Inc.’s quarterly loss and revenue performance.

Reported publicly: www.marketwatch.com