DraftKings Results Presentation Deck
DRAFTKINGS P&L AND ADJUSTED EBITDA RECONCILIATION
(1)
(2)
(3)
(4)
(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.
(amounts in thousands)
Revenue
Cost of revenue
Sales and marketing
Product and technology
General and administrative
Loss from operations
Interest income (expense), net
(Loss) gain on remeasurement of warrant liabilities
Other income, net
Loss before income tax provision (benefit)
Income tax provision (benefit)
Loss from equity method investments
Net Loss
Adjusted For
Depreciation and amortization (¹)
Interest (income) expense, net
Income tax provision (benefit)
Stock-based compensation (2)
Transaction-related costs (3)
Litigation, settlement, and related costs (4)
Advocacy and other related legal expenses(5)
Loss (gain) on remeasurement of warrant liabilities
Other non-recurring and non-operating costs (income)(6)
Adjusted EBITDA
Three months ended September 30,
2022
2021
501,938
372,692
321,714
76,299
186,261
(455,028)
6,301
(6,797)
8,257
(447,267)
3,177
50
(450,494)
46,089
(6,301)
3,177
126,038
751
1,390
16,558
6,797
(8,216)
(264,211)
212,819
170,749
303,658
65,222
219,706
(546,516)
(1,556)
7,091
(540,981)
3,845
202
(545,028)
30,356
1,556
3,845
175,664
4,348
4,712
16,667
(7,091)
1,368
(313,603)
Nine months ended September 30,
2022
2021
1,385,328
998,838
840,695
234,853
590,476
(1,279,534)
8,378
20,199
40,566
(1,210,391)
(77,580)
2,479
(1,135,290)
120,629
(8,378)
(77,580)
448,636
15,030
5,786
16,558
(20,199)
(37,046)
(671,854)
The amounts include the amortization of acquired intangible assets of $29.8 million and $20.2 million for the three months ended September 30, 2022 and 2021, respectively, and $76.1 million and $59.9
million for the nine months ended September 30, 2022 and 2021, respectively.
Reflects stock-based compensation expenses resulting from the issuance of awards under 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 nine months ended September 30, 2022, those costs primarily related to our activities in California. For the three and nine months ended September 30, 2021, those
costs primarily related to our activities in California and 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.
822,700
540,980
703,056
184,016
587,509
(1,192,861)
1,071
(2,905)
(1,194,695)
1,654
549
(1,196,898)
88,600
(1,071)
1,654
499,246
15,261
8,933
27,702
2,905
5,501
(548,167)
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