DraftKings Stock Surges as Online Betting Company Boosts Revenue Outlook

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DraftKings reported revenue of $466 million for the second quarter, beating Wall Street estimates.

Scott Eisen/Getty Images for DraftKings

Shares of

DraftKings

were soaring Friday, after the online sports betting platform lifted its financial forecast, despite a gloomy macro environment. The upbeat outlook is also in contrast to weaker growth at rival

Caesars Entertainment
.

For the full year, DraftKings (ticker: DKNG) now expects revenue of between $2.08 billion and $2.18 billion, and adjusted earnings before interest, taxes, depreciation, and amortization, or Ebitda, ranging from negative $765 million to negative $835 million.

DraftKings earlier had projected revenue of $2.05 billion to $2.17 billion and adjusted Ebitda of negative $810 million to negative $910 million.

“Customer engagement remains strong, and we continue to see no perceivable impact from broader macroeconomic pressures,” said CEO Jason Robins.

Shares of DraftKings jumped nearly 10% to $17.90 early Friday.

DraftKings’ average number of monthly unique paid users increased by 30% year-over-year to 1.5 million in the second quarter. Revenue per payer on average was $103, also a 30% increase from the same period last year.

The company posted a loss of 50 cents a share, narrower than the 75 cents a share loss consensus among analysts tracked by FactSet. Revenue of $466 million for the quarter, which ended in June, also beat expectations of $439 million.

Conversely,

Caesars Entertainment

(CZR) posted a loss of 57 cents per share for the same period. Analysts were looking for earnings of 18 cents.

Write to Karishma Vanjani at karishma.vanjani@dowjones.com