DraftKings Mergers and Acquisitions 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
Cost of revenue
Sales and marketing
Product and technology
General and administrative
adjusted for the following items: Loss from operations
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)
(6)
(amounts in thousands)
Revenue
Interest income (expense), net
Gain (Loss) on remeasurement of warrant liabilities
Loss before income tax provision (benefit)
Income tax provision (benefit)
Loss from equity method investment
Net Loss
Adjusted For
Depreciation and amortization
Interest (income) expense, net
Income tax provision(benefit)
Stock-based compensation)
Transaction-related costs"
(3)
(4)
Litigation, settlement, and related costs
Advocacy and other related legal expenses (5)
(Gain) loss on remeasurement of warrant liabilities
(6)
Other non-recurring costs and special project costs
Adjusted EBITDA
Three months ended June 30,
2021
2020
297,605
187,006
170,712
62,635
198,806
(321,554)
1,642
16,984
(302,928)
2,404
194
(305,526)
30,051
(1,642)
2,404
171,739
7,890
3,599
11,035
(16,984)
2,132
(95,302)
70,931
47,330
46,188
30,549
107,308
(160,444)
(588)
(363,361)
(524,393)
323
82
(524,798)
18,668
588
323
54,486
25,255
2,022
363,361
2,600
(57,495)
Six months ended June 30,
2021
2020
609,881
370,231
399,398
118,794
367,803
(646,345)
2,627
(9,996)
(653,714)
(2,191)
347
(651,870)
58,244
(2,627)
(2,191)
323,582
10,913
4,221
11,035
9,996
4,133
(234,564)
The amounts include the amortization of acquired intangible assets of $20.6 million and $13.2 million for the three months ended June 30, 2021 and 2020, respectively, and $39.7 million and
$13.2 million for the six months ended June 30, 2021 and 2020, respectively.
The amounts for the three and six months ended June 30, 2021 primarily reflect stock-based compensation expenses resulting from the issuance of awards under long-term incentive plans. The
amounts for the three and six months ended June 30, 2020, primarily reflect probability-based expenses on stock-based compensation awards resulting from the achievement of share price
targets under long-term incentive plans and the issuance of our Class B shares (which have no economic or conversion rights) to our Chief Executive Officer.
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 the three and six months ended June 30, 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 the current period, those costs primarily relate to 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, as well as
our equity method share of the investee's losses.
159,473
90,746
99,894
48,590
146,804
(226,561)
(2,939)
(363,361)
(592,861)
332
285
(593,478)
23,372
2,939
332
59,328
30,907
3,352
363,361
2,931
(106,956)View entire presentation