DraftKings Results Presentation Deck
PRO FORMA DRAFTKINGS P&L AND ADJUSTED EBITDA RECONCILIATION
Pro Forma Adjusted EBITDA
We define and calculate Pro
Forma Adjusted EBITDA as pro
forma net loss (giving effect to
the Business Combination as if it
were consummated on January
1, 2019) before the impact of
interest income or expense,
income tax expense or benefit
and depreciation and
amortization, and further
adjusted for the same items as
Adjusted EBITDA.
(1)
(2)
(3)
(4)
(5)
(6)
(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
Income tax provision
(Gain) loss from equity method investment
Net Loss
Adjusted For
Depreciation and amortization (¹)
Interest (income) expense, net
Income tax provision
Stock-based compensation (²)
Transaction-related costs (³)
Litigation, settlement, and related costs (4)
Advocacy and other related legal expenses (5)
(Gain) loss on remeasurement of warrant liabilities
(6)
Other non-recurring, special project and non-operating (income) costs"
Adjusted EBITDA
Year ended December 31,
2021
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)
2020
643,502
377,191
499,342
186,204
430,791
(850,026)
(1,530)
(387,565)
(1,239,121)
3,074
566
(1,242,761)
100,455
1,530
3,074
335,660
5,500
6,839
387,565
6,210
(395,928)
The amounts include the amortization of acquired intangible assets of $80.1 million and $72.4 million for 2021 and 2020, respectively.
The amounts for 2021 and 2020 primarily reflect stock-based compensation expenses resulting from the issuance of awards under long-term incentive plans, and in 2020, the issuance of our
Class B shares (which have no economic or conversion rights) to our Chief Executive Officer, and $10.9 million due to the satisfaction of the performance condition, immediately prior to the
consummation of the Business Combination, on stock-based compensation awards granted to SBTech employees in prior periods.
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. These costs include those relating to the Business Combination for 2020.
Includes primarily external legal costs related to litigation and litigation settlement costs deemed unrelated to our core business operations.
Includes certain non-recurring costs relating to advocacy efforts and other legal expenses in jurisdictions where we do not operate certain products and are actively seeking licensure, or similar
approval, for those products. For 2021, those costs primarily relate to California and Florida. The amount excludes other recurring costs relating to advocacy efforts and other legal expenses
incurred in jurisdictions where related legislation has been passed and we currently operate.
Includes primarily consulting, advisory and other costs relating to non-recurring items and special projects, including the implementation of internal controls over financial reporting, change in
fair value of certain financial assets and our equity method share of the investee's losses.
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