DraftKings Results Presentation Deck
DRAFTKINGS P&L AND ADJUSTED EBITDA RECONCILIATION
Adjusted EBITDA
We define and calculate Adjusted
EBITDA as net loss before the
impact of interest income or
expense, income tax expense and
depreciation and amortization, and
further adjusted for the following
items: stock-based compensation,
transaction-related costs,
litigation, settlement and related
costs and certain other non-
recurring, non-cash and non-core
items, as described in the
footnotes to the reconciliation.
(1)
(2)
(3)
(4)
(in thousands, except percentages)
Revenue
Cost of revenue
Sales and marketing
General and administrative
Product and technology
Loss from operations
Interest income (expense), net
Loss before income tax expense
Income tax benefit (expense)
Loss from equity method investment
Net Loss
Adjusted for:
Depreciation and amortization
(excluding acquired intangibles)
Amortization of acquired intangibles
Interest (income) expense, net
Income tax (benefit) expense
Stock-based compensation (1)
Transaction-related costs (2)
Litigation, settlement, and related
costs (3)
Other non-recurring costs and
special project costs (4)
Other non-operating costs
Adjusted EBITDA
Three months ended September 30,
2020
2019
$
132,836
(96,569)
(203,339)
(127,376)
(53,909)
(348,357)
686
(347,671)
13
(95)
$ (347,753)
LA
$
7,828
18,767
(686)
(13)
117,035
3,585
2,419
1,645
95
(197,079)
$
$
$
67,014
(25,332)
(58,351)
(25,185)
(14,323)
(56,177)
277
(55,900)
(19)
(55,919)
3,430
(277)
19
1,844
1,328
710
444
(48,421)
Nine months ended September 30,
2020
2019
$
$
$
292,309 $
(187,315)
(303,233)
(274,180)
(102,499)
(574,918)
(2,253)
(577,171)
(319)
(380)
(577,870) $
17,980
31,987
2,253
319
176,362
34,492
5,771
4,291
380
(304,035) $
The amounts for the three and nine months ended September 30, 2020, primarily reflect stock-based compensation expenses resulting from the issuance of awards under long-term incentive plans and,
for the nine months ended September 30, 2020, the issuance of our Class B shares (which have no economic or conversion rights) to our CEO.
Includes capital markets advisory, consulting, accounting and legal expenses related to evaluation, negotiation and integration costs incurred in connection with transactions and offerings, including the
Business Combination. Also includes bonuses, paid in the second quarter of 2020, to certain employees in connection with the consummation of the Business Combination. In 2019, these costs related
to exploratory acquisition activities.
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 the three and nine months ended September 30, 2019, the cost of our move to
our new Boston headquarters, executive search costs and, for the three and nine months ended September 30, 2020, implementation of internal controls over financial reporting and tax structuring
advisory costs.
192,496
(64,718)
(124,867)
(78,181)
(39,645)
(114,915)
1,364
(113,551)
(35)
(113,586)
9,629
(1,364)
35
8,519
2,603
2,411
1,816
(89,937)View entire presentation