Investors hammered DraftKings stock following the third-quarter earnings report from the sportsbook operator early Friday.
The report had some positives as DraftKings Sportsbook outperformed in terms of revenue and cut its quarterly adjusted EBITDA loss by 15.7% to $264.2 million. The company also raised its revenue and adjusted EBITDA goals for this year and introduced 2023 guidance suggesting about a 33% improvement at the midpoint.
Investors clearly wanted more, though. The past week has included both Caesars and PENN Entertainment boasting sports betting and iGaming profitability in October 2022 with a potential to turn a profit for the fourth quarter.
DraftKings, however, did not join that profitability parade. The company maintained its expectations that profitability will first come in the fourth quarter of 2023 with the potential for a break-even full year in 2024.