DraftKings Results Presentation Deck slide image

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. | 10
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