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DraftKings has increased the midpoint of its revenue guidance for the year, in addition to forecasting its 2022 expectations, as the group reflects on what it lauds as “a strong third quarter”.

Revenue during the quarter increased 60 per cent year-on-year to $212.81m (2020: $132.83m), which falls in-line with guidance previously provided during its second quarter earnings conference call.

However, net loss widened to $545m from the $395.66m recorded one year earlier, with adjusted EBITDA loss also growing to $313.6m (2020: $197m).

Citing strong customer retention and acquisition as drivers of Q3 growth, monthly unique payers for DraftKings’ B2C segment increased 31 per cent year-on-year. On average, 1.3 million monthly unique paying customers engaged with DraftKings during each month of the third quarter.

Average Revenue per MUP was $47 in the third quarter of 2021 representing a 38 per cent increase versus the same period in 2020.

The company says that ARPMUP “benefitted from continued mix shift into our sportsbook and igaming product offerings, cross selling our customers into more products and stronger engagement within product verticals”.

For the year-to-date, revenue surged to $822.7m (2020: $292.3m), with net loss and adjusted EBITDA loss both stretching to $1.19bn (2020: $989.13m) and $548.16m (2020: $304.03m).

“DraftKings had a strong third quarter that highlights our team’s unique ability to drive engagement with our core customers while simultaneously launching new states and verticals and completing the complex migration to our own in-house technology ahead of schedule,” said Jason Robins, DraftKings’ co-founder, CEO and chair of the board

“Since migrating, we have rapidly added innovative features and functionality to our top-ranked mobile sports betting app. We are also excited that our new growth initiatives, including DraftKings Marketplace and our content and media business, demonstrated promising early results in the quarter.”

DraftKings is also increasing the midpoint of its 2021 revenue guidance to $1.26bn, as well as narrowing the guidance range of $1.21bn to $1.29bn to a range of $1.24bn to $1.28 bn, which equates to year-over-year growth of 93 per cent to 99 per cent.

This reflects strong results during the year-to-date, new state launches and an “ability to engage users and acquire customers efficiently,” but does not take into consideration the impact of any new state launches after November 5, 2021.

The company has also introduced 2022 revenue guidance of $1.7bn to $1.9bn, which equates to 43 per cent year-over-year growth.

Jason Park, DraftKings’ CFO, added: “Fundamental user acquisition, retention and engagement trends in the third quarter were outstanding across all of our online gaming products. 

“We delivered $213m in third quarter revenue which represents a 60 per cent year-over-year increase. On a same state basis and taking into consideration lower than expected hold primarily due to NFL game outcomes, third quarter revenue would have been $40m higher. 

“Our key performance indicators also continued to grow, as monthly unique payers increased by 31 per cent and average revenue per monthly unique payer grew by 38 per cent. 

“We are increasing the midpoint of our 2021 revenue guidance and introducing 2022 revenue guidance which points to another year of strong growth in existing states for DraftKings.”