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)
(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
Loss before income tax provision (benefit)
Income tax provision (benefit)
Loss from equity method investment
Net Loss
Adjusted For
Depreciation and amortization(¹)
Interest expense (income), net
Income tax provision (benefit)
Stock-based compensation (2)
Transaction-related costs
Litigation, settlement, and related costs (4)
(3)
Advocacy and other related legal expenses
(Gain) loss on remeasurement of warrant liabilities
(5)
Other non-recurring costs and special project costs
Adjusted EBITDA
Three months ended September 30,
2021
212,819
170,749
303,658
65,222
219,706
(546,516)
(1,556)
7,091
(540,981)
3,845
202
(545,028)
30,356
1,556
3,845
175,664
4,348
4,712
16,667
(7,091)
1,368
(313,603)
2020
132,836
96,569
203,339
53,909
127,376
(348,357)
686
(47,908)
(395,579)
(13)
95
(395,661)
26,595
(686)
(13)
117,034
3,585
2,419
47,908
1,740
(197,079)
Nine months ended September 30,
2021
822,700
540,980
703,056
184,016
587,509
(1,192,861)
1,071
(2,905)
(1,194,695)
1,654
549
(1,196,898)
88,600
(1,071)
1,654
499,246
15,261
8,933
27,702
2,905
5,501
(548,167)
The amounts include the amortization of acquired intangible assets of $20.2 million and $18.8 million for the three months ended September 30, 2021 and 2020, respectively, and $60.0 million
and $32.0 million for the nine months ended September 30, 2021 and 2020, respectively.
The amounts for the three and nine months ended September 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 nine months ended September 30, 2020, primarily reflect stock-based compensation expenses resulting from the issuance of awards under long-term
incentive plans and, for the nine months ended September 30, 2020, 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 nine months ended September 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 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, as well as
our equity method share of the investee's losses.
2020
292,309
187,315
303,233
102,499
274,180
(574,918)
(2,253)
(411,269)
(988,440)
319
380
(989,139)
49,967
2,253
319
176,362
34,492
5,771
411,269
4,671
(304,035)View entire presentation