DraftKings Inc. (DKNG) saw its stock price surge 5.08% in after-hours trading on Thursday, following the release of its first-quarter earnings report. The sports betting and gaming company posted results that beat analyst expectations in some key areas, despite falling short on revenue.
According to the report, DraftKings recorded a Q1 revenue of $1,408.806 million, slightly missing the IBES estimate of $1,456 million. However, investors seemed to focus more on the company's improved bottom line. DraftKings reported a net loss of $33.864 million for the quarter, significantly better than the expected loss of $36.9 million projected by analysts.
While the company's operating loss of $46.331 million was slightly worse than the estimated $42.2 million, the market appears to have responded positively to the overall financial picture. The narrower-than-expected net loss suggests that DraftKings is making progress in its path towards profitability, which could explain the enthusiastic after-hours trading response despite the revenue miss.
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