Draftkings CEO Calls The Stock Plunge A Result Of Volatility In The Market
Massachusetts-based sports gambling company, DraftKings Inc. (DKNG)’s CEO, Jason Robins suggested that the plunge in its stock is just the manifestation of the instability of the market and not related to the company’s loss in the fourth quarter.
During an interview with CNBC, he said, “It’s a wild market right now. I think what we’re doing has been very consistent since day one. I think the model’s working, and we’ll play the long game here.”
I’m very confident that once the market settles down and rationality kicks back in, the metrics we’re putting out there will start to resonate,” the CEO added. “But in the meantime, we’ve just got to keep doing our thing and hopefully the market will catch on.”
As the window closed, DraftKing went down 21.62% on the market. The fourth-quarter adjusted loss per share for the company was $0.35.
“Certainly, I think consensus for EBITDA, which we did not guide to until now, has been all over the place,” Robins added, “We haven’t missed a single number that we’ve put out there, and so I think our track record speaks for itself.”
Adjusted EBITDA loss widened to $127.97 million from a loss of $87.88 million, the prior year. Net loss widened to $326.30 million from a loss of $242.70 million, the prior year. GAAP loss per share was $0.80, for the quarter.
Robins told the wire, “We have a multi-year plan. That plan goes out five years and we have certain milestones we need to hit each year to get there, and so far we’ve hit them all.”
The company announced a multi-year financial commitment to assist the 35 state problem gaming councils across the country in providing critical funding which will support the work of local nonprofit organizations. DraftKings has offered each state council $15,000 per year for three years, a total overall commitment of $1.575 million over the span of the three-year program.
The CFO of the company, Jason Park said during the earnings release, “We grew revenue 47% year-over-year to $473 million in the fourth quarter despite lower-than-expected hold in October primarily due to NFL game outcomes. Our key performance indicators reflected excellent player retention, acquisition and cross-selling in the quarter, as Monthly Unique Payers increased by 32% and Average Revenue Per Monthly Unique Payer grew by 19%.”
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