DraftKings Results Presentation Deck
Reconciliation of Net Income (Loss) to Adjusted EBITDA
Net Income (Loss) to Non-GAAP Adjusted EBITDA Reconciliation
$ Thousands
Adjusted EBITDA
We define and calculate Adjusted EBITDA as net
loss before the impact of interest income or
expense (net), income tax provision or benefit,
and depreciation and amortization, and further
adjusted for the following items: stock-based
compensation, transaction-related costs,
litigation, settlement and related costs, advocacy
and other related legal expenses, gain or loss on
remeasurement of warrant liabilities and other
non-recurring and non-operating costs or
income, as described in the reconciliation.
Revenue
Cost of revenue
Sales and marketing
Product and technology
General and administrative
Loss from operations
Other income (expense):
Interest income (expense), net
Gain (loss) on remeasurement of warrant liabilities
Other income (expense), net
Loss before income tax provision (benefit) and loss from equity method
investment
Income tax provision (benefit)
(Gain) loss from equity method investment
Net loss attributable to common stockholders
Adjusted for:
Depreciation and amortization (¹)
Interest expense (income), net
Income tax provision (benefit)
Stock-based compensation (²)
Transaction-related costs(3)
Litigation, settlement and related costs
Advocacy and other related legal expenses (5)
(Gain) loss on remeasurement of warrant liabilities
Other non-recurring and non-operating (income) costs (6)
Adjusted EBITDA
Three months ended December 31
2022
2021
$
$
855,133
485,435
345,282
83,394
173,244
(232,222)
10,324
9,197
(19,866)
(232,567)
9,714
416
(242,697)
48,623
(10,324)
9,714
130,163
2,285
1,224
(9,197)
20,282
(49,927)
$
$
473,325
253,182
278,444
69,639
240,816
(368,756)
Year ended December 31,
2022
2021
32,538
(886)
6,615
184,047
10,055
1,459
12,713
(32,970)
(15,240)
(127,966)
$ 2,240,461
1,484,273
1,185,977
318,247
763,720
(1,511,756)
886
18,702
32,970
29,396
11,951
20,700
(322,949)
(1,442,958)
6,615
(67,866)
(3,267)
2,895
(326,297) $ (1,377,987)
169,252
(18,702)
(67,866)
578,799
17,315
7,010
16,558
(29,396)
(16,764)
(721,781)
$ 1,296,025
794,162
981,500
253,655
828,325
(1,561,617)
1,957
30,065
11,951
(1,517,644)
8,269
(2,718)
$ (1,523,195)
121,138
(1,957)
8,269
683,293
25,316
10,392
40,415
(30,065)
(9,739)
(676,133)
(1)
The amounts include the amortization of acquired intangible assets of $106.1 million and $80.1 million for 2022 and 2021, respectively.
(2) Reflects stock-based compensation expenses resulting from the issuance of awards under incentive plans.
(3) Includes capital markets advisory, consulting, accounting and legal expenses related to evaluation, negotiation and integration costs incurred in connection with pending or completed transactions and offerings, including costs include those relating to the GNOG acquisition in 2022 and 2021.
(4) Primarily includes external legal costs related to litigation and litigation settlement costs deemed unrelated to our core business operations.
Includes certain non-recurring and non-ordinary course costs relating to advocacy efforts and other legal expenses in jurisdictions where we do not operate certain product offerings and are actively seeking licensure, or similar approval, for those product offerings. For 2022, those costs primarily related
to our support of Proposition 27 in California. For 2021, those costs primarily related to our support of Proposition 27 in California and our support of the sports betting ballot initiative in Florida. The amounts presented exclude (i) costs relating to advocacy efforts and other legal expenses in jurisdictions
where we do not operate that are incurred in the ordinary course of business and (ii) costs relating to advocacy efforts and other legal expenses incurred in jurisdictions where related legislation has been passed and we currently operate.
(6) Primarily includes the change in fair value of certain financial assets, as well as our equity method share of investee's losses and other costs relating to non-recurring and non-operating items.
(5)
Due to the timing of the consummation of the GNOG acquisition, the above periods, to the extent applicable, exclude GNOG's operations prior to May 5, 2022.
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