{"id":1981,"date":"2021-05-07T09:31:00","date_gmt":"2021-05-07T16:31:00","guid":{"rendered":"https:\/\/wagers.com\/staging\/4285\/?p=1981"},"modified":"2021-11-09T09:37:39","modified_gmt":"2021-11-09T17:37:39","slug":"draftkings-tight-lipped-on-sbtech-migration","status":"publish","type":"post","link":"https:\/\/wagers.com\/staging\/4285\/news\/draftkings-tight-lipped-on-sbtech-migration\/","title":{"rendered":"DraftKings tight-lipped on SBTech migration"},"content":{"rendered":"<h3>DraftKings<\/h3>\n<h4><strong>The top line<\/strong><\/h4>\n<p>Revenues rose fourfold to $312.3m while net losses from operations widened in lockstep to $324.8m from $66.1m in the prior year period. The net operational cash flow drain went from $50.8m to $77.8m. Sales and marketing expenses rose to %228.7m from $53.7m, a 325% YoY rise.<\/p>\n<p>B2C revenues rose to $280.8m, B2B came in at $31.4m. Adjusted EBITDA for B2C stood at minus $141.4 while B2B was EBITDA positive at $2.1m.<\/p>\n<p>Average monthly unique players rose to 1.54m, doubling on the Q120 number. Average revenue per monthly unique player rose 40% to $61. The company didn\u2019t disclose the hold percentage nor the split between OSB and iGaming.<\/p>\n<p>DraftKings now live in 12 states for OSB, four for iGaming.<\/p>\n<p><strong>Raising the roof: <\/strong>Having comfortably beaten expectations for the quarter, DraftKings also raised guidance for FY21 to between $1.05-1.15bn. This guidance is based on the current sporting calendar and on states which are live now, hence further upside could come from Maryland and Louisiana going live later this year. The Q1 revenue beat came off the back of the improvements in monthly uniques. The forecasts there had been 1.1m. \u201cIt\u2019s prudent to assume that not every single quarter will be a blow out,\u201d said CEO Jason Robins.<\/p>\n<p><strong>Coming up roses:<\/strong> Robins remained cagey on the move to the SBTech platform, slated for the end of the third quarter. He did say that all states would be live on the platform at that point and that they would be proceeding on a state-by-state basis. \u201cWe\u2019re on track for the end of Q3 and maybe even a little bit earlier,\u201d said Robins. However, he didn\u2019t say whether there was a rollout order or which states would be first to launch, only suggesting that they were still doing a \u201ctremendous\u201d amount of testing and that \u201ceverything is going great so far.\u201d<\/p>\n<p><strong>The New Jersey proxy:<\/strong> Robins said the experience in Michigan and Virginia in the first quarter suggests that New Jersey works as \u201creasonable and perhaps conservative proxy\u201d for future US state openings. Pre- the \u201cobviously disappointing\u201d re-introduction of in-person registration in Illinois, Robins said the state was the largest OSB state by revenue. He said that Canada, also, represented a \u201cmeaningful opportunity.\u201d<\/p>\n<p><strong>Social gambling:<\/strong> DraftKings said it is introducing functionality into its sports-betting and DFS apps that will allow users to chat, join contests, share bets, and follow\/join each other\u2019s bets. Robins said this was \u201cleaning into the inherently social aspect of sports and sports-betting.\u201d Asked whether this would involve user-generated content, Robins said the idea was to allow an element of this but with moderation.<\/p>\n<h3>Additional article available today on Earnings + More:<\/h3>\n<ul>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/7-may-draftkings-tight-lipped-on\" target=\"_blank\" rel=\"noopener\">Century Casinos revenue report<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>DraftKings The top line Revenues rose fourfold to $312.3m while net losses from operations widened in lockstep to $324.8m from $66.1m in the prior year period. The net operational cash flow drain went from $50.8m to $77.8m. Sales and marketing expenses rose to %228.7m from $53.7m, a 325% YoY rise. B2C revenues rose to $280.8m, [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[337,324],"tags":[687,590,737],"class_list":["post-1981","post","type-post","status-publish","format-standard","hentry","category-analyst-notes","category-news","tag-century-casinos","tag-draftkings","tag-sbtech"],"_links":{"self":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/1981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/comments?post=1981"}],"version-history":[{"count":2,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/1981\/revisions"}],"predecessor-version":[{"id":1984,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/1981\/revisions\/1984"}],"wp:attachment":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/media?parent=1981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/categories?post=1981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/tags?post=1981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}