DraftKings almost doubled its quarterly revenue, a larger-than-expected gain that reflected in part the resumption of major professional sports, and raised its guidance for the full year.

For the third quarter, the online gaming company reported revenue of $133 million, up 98% on a year ago. On an adjusted basis, it lost 57 cents per share as it spent $191 million on marketing expenses alone.

Analysts had expected a loss of 61 cents per share on revenue of $132 million. Pro-forma revenue growth was 46%.

DraftKings said it “experienced strong returns on its marketing spend due in part to pent-up demand, the unique sports calendar, and the stay-at-home nature of the COVID-19 pandemic.”

“The resumption of major sports such as the NBA, MLB and the NHL in the third quarter, as well as the start of the NFL season, generated tremendous customer engagement,” CEO Jason Robins said in a news release.

DraftKings’ shares rose more than 3.8% to $42.84 in trading Friday as the company also raised its full-year pro forma revenue outlook from a range of $500 to $540 million to $540 to $560 million, which equates to year-over-year growth of 25% to 30%, despite COVID-19’s impact on the major sports calendar.

Following its recent launch in Tennessee, DraftKings is now live with mobile sports betting in 10 states, which is more than any other company in the industry. Illinois is now its second-largest state in handle behind New Jersey and its fastest growing market overall.

“The company has ridden a wave of excitement about the future of online betting,” Barron’s said. “More states are expected to roll out legal sports wagering, and the company stands to benefit, especially in states that also allow online casino games.”

In the previous quarter, DraftKings posted a larger-than-expected loss but said business is picking up as major professional sports have returned to action after pauses or delays due to the coronavirus pandemic.

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