DraftKings Results Presentation Deck
PRO FORMA DRAFTKINGS P&L AND ADJUSTED EBITDA RECONCILIATION
(INCLUDES SBTECH FROM APRIL 1, 2020 TO JUNE 30, 2020)
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)
Pro Forma Information
(in thousands)
Revenue
Memo: B2C
Memo: B2B
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
Pro forma Adjusted EBITDA
$
Three months ended June 30,
2020
2019
74,998
55,977
19,021
(53,172)
(46,967)
(91,484)
(36,483)
(153,108)
(601)
(153,709)
(3,008)
(83)
$ (156,800)
5,722
17,684
601
3,008
65,346
2,022
2,517
83
$ (59,817)
$
82,987
57,390
25,597
(41,985)
(31,477)
(30,006)
(21,463)
(41,944)
346
(41,598)
4,331
$ (37,267)
3,933
18,045
(346)
(4,331)
2,018
1,276
814
223
$ (15,635)
$
Six months ended June 30,
2019
2020
188,443 $
144,519
43,924
(121,630)
(104,240)
(130,624)
(66,225)
(234,276)
(3,399)
(237,675)
(920)
(286)
(238,881)
11,274
35,383
3,399
920
70,204
3,352
2,646
285
(111,418) $
175,941
125,482
50,459
(87,913)
(71,985)
(60,317)
(43,238)
(87,512)
833
$ (77,955)
The amounts for the three and six months ended June 30, 2020 primarily reflect probability-based expenses on stock-based compensation awards resulting from the achievement of share price targets
under long-term incentive plans, 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.
The transaction costs related to the Business Combination described in footnote 2 on the following page have been eliminated in calculating our pro forma net income pursuant to the principles of Article
11 of Regulation S-X. 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 six months ended June 30, 2019, the cost of our move to our new
Boston headquarters, executive search costs and, for the three and six months ended June 30, 2020, implementation of internal controls over financial reporting and tax structuring advisory costs.
(86,679)
8,724
7,522
36,277
(833)
(8,724)
7,125
1,276
1,701
1,371
(32,240)View entire presentation