DraftKings Results Presentation Deck
PRO FORMA DRAFTKINGS P&L AND ADJUSTED EBITDA RECONCILIATION
Pro Forma Adjusted EBITDA
We define and calculate Pro
Forma Adjusted EBITDA as pro
forma net loss (giving effect to the
Business Combination as if it were
consummated on January 1,
2019) before the impact of interest
income or expense, income tax
expense or benefit and
depreciation and amortization, and
further adjusted for the same
items as Adjusted EBITDA.
(1)
(2)
(3)
(4)
(5)
(in thousands)
Revenue
Cost of revenue
Sales and marketing
Product and technology
General and administrative
Loss from operations
Interest (expense) income, net
Gain on initial equity method investment
Loss before income tax (benefit) provision
Income tax (benefit) provision
Loss from equity method investment
Net Loss
Adjusted For
Depreciation and amortization
(excluding acquired intangibles)
Amortization of acquired intangibles
Interest expense (income), net
Income tax (benefit) provision
Stock-based compensation (1)
Transation related costs (2)
Litigation, settlement, and related costs (3)
Other non-recurring costs and special project (4)
costs
Other non-operating costs (5)
Adjusted EBITDA
Three months ended December 31,
2020
2019
Actual
Pro Forma
322,223
159,274
191,959
66,134
173,194
(268,338)
1,183
(267,155)
(941)
186
(266,400)
8,914
18,529
(1,183)
(941)
148,676
1,914
1,068
1,353
186
(87,884)
162,575
65,560
62,883
7,439
62,522
(35,829)
(157)
3,000
(32,986)
(82)
479
(33,383)
5,324
16,945
157
(82)
9,248
(2,603)
1,284
673
(2,521)
(4,958)
Year ended December 31,
2020
2019
Pro Forma
643,502
377,191
499,342
186,204
430,791
(850,026)
(1,530)
(851,556)
3,074
566
(855,196)
28,024
72,431
1,530
3,074
335,660
5,500
6,839
5,644
566
(395,928)
The amounts for 2020 and 2019 primarily reflect stock-based compensation expenses resulting from the issuance of awards under long-term incentive plans, and, in 2020, the issuance of our Class B
shares (which have no economic or conversion rights) to our CEO, and $10.9 million due to the satisfaction of the performance condition, immediately prior to the consummation of the Business
Combination, on stock-based compensation awards granted to SBTech employees in prior periods
Includes capital markets advisory, consulting, accounting and legal expenses related to evaluation, negotiation and integration costs incurred in connection with transactions and offerings. The
transaction costs related to the Business Combination described in Note 3 of the Consolidated Financial Statements included elsewhere in this Annual Report have been eliminated in calculating our pro
forma net income for 2020 pursuant to the principles of Article 11 of Regulation S-X. Reversal of previously adjusted transaction related costs in 2019, which were subsequently deemed to be related to
the BCA.
Includes primarily external legal costs related to litigation and litigation settlement costs deemed unrelated to our core business operations.
Includes primarily consulting, advisory and other costs relating to non-recurring items and special projects, including, for 2020, the implementation of internal controls over financial reporting and tax
advisory costs and, for 2019, the cost of our move to our new Boston headquarters and executive search costs.
Includes our equity method share of the investee's losses in 2020 and, in 2019, a gain recorded upon a contribution of assets to an equity method investee, net of our equity method share of the
investee's losses.
Pro Forma
431,834
202,768
194,672
95,454
129,714
(190,774)
1,173
3,000
(186,601)
(13,118)
479
(173,962)
16,933
71,079
(1,173)
(13,118)
18,354
3,695
2,489
(2,521)
(78,224)View entire presentation