DKNG) Q2 2020 Earnings Call Highlights




DraftKings, Inc. (NASDAQ: DKNG) Q2 2020 Earnings Call Highlights

CEO, Jason Robins:

CEO, Jason Robbins

“…We had a strong second quarter given the limited sports calendar with second quarter pro forma revenue of $75 million. As sports have started to return, we saw revenue improve sequentially each month in the quarter, with June revenue increasing 20% year-over-year on a pro forma basis. This strong overall results and improvement are due to our product innovation, our entry into new jurisdiction, and pent-up demand for sports betting as Live Sports like Golf, European Soccer, NASCAR and UFC started to return.

To give you a sense of demand, in the absence of major sports, I wanted to provide a couple of highlights. Top NASCAR races, which has traditionally been a new sport for us, saw similar action to popular NBA regular season game. In Golf, prior to this year, our top event of all time was the 2019 U.S. Open. Since the restarted PGA Tour, six PGA Tour events and the Match II have topped that major. In both May and June, we more than tripled our previous best month for UFC handle.

The momentum we saw in June accelerated with the return of MLB, the NBA, and the NHL in late July and early August. As a result, we’re seeing continued year-over-year revenue growth in the first part of Q3. Not only did the Yankees national game on opening night set records at DraftKings, it was also ESPN’s most watched opening night baseball games ever, and the most watched regular season baseball game on any television network since 2011.

In the first two weeks of MLBs return, we saw three times the handle compared to the first two weeks of the 2019 MLB season. In the first week of the NHL’s return, our handle is more than twice the handle of first week of 2019 NHL playoff. With the NBA Christmas Day 2019 was our highest handle day, but four of the next five highest handle days occurred in the first week of the NBA’s return.

All of these statistics, I provided are just to give you a sense of this unique period and are on a normalized basis and that they do not include the effect of new states that are not necessarily indicative of our future performance.

As you can see from these fantastic statistics, there is clearly pent-up demand that is compounded by a truly unique sport calendar. A byproduct of this demand is that we’re seeing very strong marketing response rates and return on advertising spend. And in response to these great returns, we intend to invest to expand our leadership position in the market.

We’re really excited that sports have begun to return, but we all realize that there have been and there continue to be hiccups in the sports calendar in the back half of the year. We think leads and associations are doing a great job ensuring the safety and health of the athletes and staff, and we’re optimistic that sports will…

Read More:Source link