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)
(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,
2019
2020
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)
130,914
39,171
60,402
16,284
46,687
(31,630)
(16)
3,000
(28,646)
23
479
(29,148)
4,007
16
23
9,094
7,869
1,284
673
(2,521)
(8,703)
Year ended December 31,
2020
2019
614,532
346,589
495,192
168,633
447,374
(843,256)
(1,070)
(844,326)
(622)
566
(844,270)
26,894
50,516
1,070
(622)
325,038
36,406
6,839
5,644
566
(391,919)
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.
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.
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.
323,410
103,889
185,269
55,929
124,868
(146,545)
1,348
3,000
(142,197)
58
479
(142,734)
13,636
(1,348)
58
17,613
10,472
3,695
2,489
(2,521)
(98,640)
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