DraftKings Investor Day Presentation Deck
Gross margin leverage for a cohort is achieved over time due to promotional spend
decreasing, economies of scale, and operational initiatives
Cohort Level Gross Margin Improvement
1
2
3
4
Customer Cohort
Economics
State Level
Economics
Many of our variable costs are tied to gross revenue, not net revenue; therefore, as
promotional rates decrease, gross margin increases
Given that new customer promotions are richer than existing customer promotions,
promotions as a percentage of GGR naturally decrease as we shift from acquisition
investments to retention and cross-sell investments
As we continue to grow revenue and deposit volume, certain variable costs decrease
as a percentage of revenue due to pricing tiers that result in volume discounts
Continuous focus on operational initiatives around platform costs, processing fees,
and revenue share drives margin increase across all cohorts
Enterprise
Economics
t
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