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DraftKings posts another earnings beat, raises guidance

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Yahoo Finance Live anchors discuss DraftKings earnings, the sports betting platform's path toward profitability, and consumer loyalty.

Video Transcript

BRIAN SOZZI: From that, we'll go to DraftKings. DraftKings also in focus, hot ticker on the Yahoo Finance platform. The company raising its guidance, Julie, for revenue slightly. That's pretty good. Monthly unique payers look to have increased 30%, versus at this point last year. Good quarter for DraftKings, but again, they're still not making any money. Market doesn't care, stock up.

JULIE HYMAN: Yeah, it costs them a lot of money to get that higher revenue, doesn't it? Because they're doing all of the promotions that they've been doing. Monthly unique paying customers at one and half million in the quarter. That is a 30% increase. But it is a little bit lower than had been estimated.

So you know, should be interesting to see how they're gonna try and continue to grow-- to push that growth. There's a lot of competition in the sports betting space right now. And so that's why you have this sort of-- you know, to go back to Lyft and Uber, it's like what we saw at Lyft and Uber at one time when you had all these promotions as they were trying to gain customers.

Now, in the case of DraftKings, I don't know if a customer-- in other words, if you're an Uber or Lyft customer, like how sticky are you? How loyal are you to one particular brand? If you're a DraftKings customer and you get used to that system, that's probably a little stickier, right, then-- in other words, are you switching back and forth between betting platforms to try and get the best promotions? I don't know how much that behavior is going on.

BRIAN SOZZI: Yeah, at some point, they're going to have to turn a profit. But this could be a pretty big football season for DraftKings. Of course, that is peak season. They're getting ready to peak season. Guidance looks pretty attainable to me.

JULIE HYMAN: All right, well, we're gonna talk to Jason Robbins.

BRIAN SOZZI: Yes.

JULIE HYMAN: Well, we aren't. But he is going to be--

BRIAN SOZZI: We'll be here.

JULIE HYMAN: --speaking to us.