DraftKings Results Presentation Deck
DRAFTKINGS P&L AND ADJUSTED EBITDA RECONCILIATION
(1)
(2)
(5)
(6)
Adjusted EBITDA
We define and calculate
Adjusted EBITDA as net loss
before the impact of interest
income or expense (net), income
tax provision or benefit, and
depreciation and amortization,
and further adjusted for the
following items: stock-based
compensation, transaction-
related costs, litigation,
settlement and related costs,
advocacy and other related legal
expenses, gain or loss on
remeasurement of warrant
liabilities and other non-
recurring and non-operating
costs or income, as described in
the reconciliation below.
(amounts in thousands)
Revenue
Cost of revenue
Sales and marketing
Product and technology
General and administrative
Loss from operations
Interest income, net
Gain (loss) on remeasurement of warrant liabilities
Other (expense) income, net
Loss before income tax (benefit) provision and loss from
equity method investment
Income tax (benefit) provision
Loss from equity method investment
Net Loss
Adjusted For
Depreciation and amortization (¹)
Interest income, net
Income tax (benefit) provision
Stock-based compensation (2)
Transaction-related costs(3)
Litigation, settlement, and related costs (4)
Advocacy and other related legal expenses(5)
(Gain) loss on remeasurement of warrant liabilities
Other non-recurring and non-operating costs (income)(6)
Adjusted EBITDA
Three months ended June 30,
2021
2022
466,185
312,767
197,529
77,202
187,609
(308,922)
1,929
14,315
(5,573)
(298,251)
(81,226)
78
(217,103)
42,315
(1,929)
(81,226)
135,521
10,505
2,446
(14,315)
5,652
(118,134)
297,605
187,006
170,712
62,635
198,806
(321,554)
1,642
16,984
(302,928)
2,404
194
(305,526)
30,051
(1,642)
2,404
171,739
7,890
3,599
11,035
(16,984)
2,132
(95,302)
Six months ended June 30,
2021
2022
883,390
626,146
518,981
158,554
404,215
(824,506)
2,077
26,996
32,309
(763,124)
(80,757)
2,429
(684,796)
74,540
(2,077)
(80,757)
322,598
14,279
4,396
(26,996)
(28,830)
(407,643)
The amounts include the amortization of acquired intangible assets of $27.1 million and $20.6 million for the three months ended June 30, 2022 and 2021, respectively, and $46.3 million and $39.7 million for the
six months ended June 30, 2022 and 2021, respectively.
Primarily reflects stock-based compensation expenses resulting from the issuance of awards under long-term incentive plans.
Includes capital markets advisory, consulting, accounting and legal expenses related to evaluation, negotiation and integration costs incurred in connection with pending or completed transactions and offerings.
Primarily includes external legal costs related to litigation and litigation settlement costs deemed unrelated to our core business operations.
Includes certain non-recurring costs relating to advocacy efforts and other legal expenses in jurisdictions where we do not operate certain products and are actively seeking licensure, or similar approval, for
those products. For the three and six months ended June 30, 2021, those costs primarily related to our activities in Florida. The amounts presented exclude other costs relating to advocacy efforts and other legal
expenses incurred in jurisdictions where related legislation has been passed and we currently operate.
Primarily includes the change in fair value of certain financial assets, as well as our equity method share of the investee's losses and other costs relating to non-recurring and non-operating items.
609,881
370,231
399,398
118,794
367,803
(646,345)
2,627
(9,996)
(653,714)
(2,191)
347
(651,870)
58,244
(2,627)
(2,191)
323,582
10,913
4,221
11,035
9,996
4,133
(234,564)
I
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