DraftKings Shares Surge 15% on Q4 Beat & Raised Outlook

DraftKings (NASDAQ:DKNG) shares soared more than 15% on Friday after the company posted Q4 EPS of ($0.53), better than the Street estimate of ($0.61). Revenue came in at $855 million (up 81% year-over-year), beating the Street estimate of $798.23 million.

The company raised its fiscal year 2023 revenue guidance to a range of $2.85-$3.05 billion (27-36% year-over-year growth) from $2.8-$3.0 billion (announced on November 4, 2022). The Street estimate stands at $2.95 billion.

The company expects a 5x increase in contribution profit (over $500 million), demonstrating that its brand advantage and vertically integrated tech stack are creating structurally higher gross margins from product improvements in trading, parlays, and promotional intensity.