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)
(amounts in thousands)
Revenue
Cost of revenue
Sales and marketing
Product and technology
General and administrative
Loss from operations
Interest income (expense), net
Gain (loss) on remeasurement of warrant liabilities
Other income, net
Loss before income tax provision (benefit)
Income tax provision (benefit)
Loss from equity method investment
Net Loss
Adjusted For
Depreciation and amortization(¹
Interest income, net
Income tax provision (benefit)
Stock-based compensation (²)
Transaction-related costs (3)
Litigation, settlement, and related costs (4)
(Gain) loss on remeasurement of warrant liabilities
Other non-recurring costs and non-operating (income) costs (5)
Adjusted EBITDA
Three months ended March 31,
2022
2021
417,205
313,379
321,452
81,352
216,606
(515,584)
148
12,681
37,882
(464,873)
469
2,351
(467,693)
32,225
(148)
469
187,077
3,774
1,950
(12,681)
(34,482)
(289,509)
The amounts include the amortization of acquired intangible assets of $19.2 million and $19.1 million for the three months ended March 31, 2022 and 2021, respectively.
Primarily reflects stock-based compensation expenses resulting from the issuance of awards under long-term incentive plans.
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.
Primarily includes external legal costs related to litigation and litigation settlement costs deemed unrelated to the Company's core business operations.
Primarily includes the change in fair value of certain financial assets, as well as the Company's equity method share of the investee's losses and other costs relating to non-recurring items.
312,276
183,225
228,686
56,159
168,997
(324,791)
985
(26,980)
(350,786)
(4,595)
153
(346,344)
28,193
(985)
(4,595)
151,843
3,023
622
26,980
2,001
(139,262)
I
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