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DKNG Shares Surge 13% On Updated FY22 Outlook

Shares of DraftKings Inc. (DKNG) are soaring over 13% Friday morning, after the gaming company updated its fiscal 2022 revenue forecast, while reporting better-than-expected Q2 results.

The stock, which has been trading between $9.77 and $64.58 for the past one year, is currently trading at $18.53, up $2.17 or 13.24%, with trading volume of over 13.8 million versus an average volume of 21.3 million shares.

FY22 Outlook

DraftKings raised its fiscal year 2022 revenue guidance to a range of $2.08 billion - $2.18 billion from the previously communicated range of $2.055 billion - $2.175 billion. This updated 2022 revenue guidance range equates to year-over-year growth of 60% - 68%.

Also, the company improved its fiscal year 2022 Adjusted EBITDA guidance to a loss of between $765 million and $835 million from its Prior FY 2022 guidance of a loss of between $810 million and $910 million.

Q2 Numbers

The company incurred a net loss of $217.1 million, narrower than the prior year's loss of $305.5 million. On a per share basis, GAAP loss was $0.50 per share, and adjusted loss was $0.29 per share for the three months ended June 30, 2022. Revenue for the quarter was $466 million, an increase of 57% compared to $298 million during the same period in 2021, largely reflecting strong customer engagement and retention.

Analysts polled by Thomson Reuters expected a loss of $0.83 per share on revenue of $436.19 million for the quarter. Analysts' estimate typically exclude certain special items.

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