Fantasy sports and betting operator DraftKings has lowered its full-year revenue forecast after reporting widening losses in the third quarter.
The company reported a 16.2% increase in Q3 revenue to US$1.33 billion, but its adjusted loss reached US$316.9 million in the three months to September, and it has lowered its full-year revenue forecast from US$6.7 billion to US$6.45.
In its third quarter report, the company cited its increased investment in prediction market products, which it says will eventually total between US$650 million and US$700 million. In a statement commenting on the results, DraftKings Chief Executive and co-founder Jason Robins said the third quarter was a pivotal moment, and that the predictions product was driving meaningful growth.
The company also reported 4.1 million monthly unique paying customers during the quarter, an increase of 500,000 year on year.
The third quarter results were not well received by the market, however, as analysts had expected revenue around the US$1.39 billion level. DraftKings shares fell by 23% as a result, hitting US$18.08.