FanDuel has best quarter ever and projects $50 million in revenue for year

FanDuel keeps rolling. In the recent close of Q3, the daily fantasy sports leader, announced that they closed out a record $8.89 million in revenue. That was based on additional records for collected entry fees at $109.7 million and paid out prizes at $100.8 million. Both represent that largest sums to date for the company.  In addition, the company disclosed that the number of Paid Actives, a measure of playing players, reached 519,310. That represents more than double the previous quarter of 192,942.

The company also announced they were increasing their projected revenue to $50 million, an adjustment of $10 million more. The company is also projected to reach $500 million in paid out prizes. Finally, the company estimates its market share at 70%, which would make it the daily fantasy sports leader.

Commentary

What is more impressive is that this was done in third quarter, which traditionally has been only the companies' second best quarter. The fourth quarter has tended to their best quarter as it includes the fantasy sports gorilla, football in their books. This year's Q3 results represented a 240% increase from last year.  If historical trends keep in line, FanDuel could be on track to post $243 million in collected fees and $222 million in payouts for Q4 with revenues at a 10% of payout amount of $22 million.
The paid actives would also be interesting to see with the latest market push from FanDuel. Although, the company also has not disclosed what their costs are and I would be very curious to see what their cost per player acquisition is.