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)
(5)
(in thousands)
Revenue
Cost of revenue
Sales and marketing
Product and technology
General and administrative
Loss from operations
Interest income (expense), net
Loss on remeasurement of warrant liabilities
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 (income) expense, net
Income tax (benefit) provision
Stock-based compensation(¹)
Transation related costs (²)
Litigation, settlement, and related costs (3)
Loss on remeasurement of warrant liabilities
Other non-recurring costs and special project costs (4)
Other non-operating costs
Adjusted EBITDA
(5)
Three months ended March 31,
2021
2020
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.
Includes our equity method share of the investee's losses.
312,276
183,225
228,686
56,159
168,997
(324,791)
985
(26,980)
(350,786)
(4,595)
153
(346,344)
9,062
19,131
(985)
(4,595)
151,843
3,023
622
26,980
1,848
153
(139,262)
88,542
43,416
53,706
18,041
39,496
(66,117)
(2,351)
(68,468)
9
203
(68,680)
4,704
2,351
9
4,842
5,652
1,330
-
129
203
(49,460)
The amounts for the three months ended March 31, 2021 primarily reflect stock-based compensation expenses resulting from the issuance of awards under long-term incentive plans and, for the three
months ended March 31, 2020, primarily reflects stock-based compensation expenses resulting from the issuance of awards under time-based, performance-based and long-term incentive plans.
Includes capital markets advisory, consulting, accounting and legal expenses related to evaluation, negotiation and integration costs incurred in connection with transactions and offerings, including
those relating to the Business Combination for the three months ended March 31, 2020.
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