DraftKings Investor Day Presentation Deck
Legal disclaimer
Forward-Looking Statements
This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform
Act of 1995, including statements about DraftKings Inc. ("DraftKings", the "Company", "we", "us" and "our") and its industry that involve substantial risks and uncertainties. All statements,
other than statements of historical fact, contained in this presentation, including statements regarding guidance, our future results of operations or financial condition, strategic plans
and focus, user growth and engagement, product initiatives, and the objectives and expectations of management for future operations (including launches in new jurisdictions and the
expected timing thereof), are forward-looking statements.
In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "are," "believe," "confident," "contemplate," "continue," "could," "estimate,"
"expect," "forecast," "going to," "intend," "is," "may," "plan," "potential," "predict," "project," "propose," "should," "target," "will," or "would" or the negative thereof or other similar terms or
expressions, or by discussions of vision, strategy or outlook. We caution you that the foregoing may not include all of the forward-looking statements made in this presentation.
You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this presentation primarily on our current
expectations and projections about future events and trends, including the current macroeconomic environment, that we believe may affect our business, financial condition, results of
operations, and prospects. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks,
uncertainties, assumptions and other important factors, including those described in our filings with the Securities and Exchange Commission (the "SEC"), which are available on the SEC's
website at www.sec.gov.
In addition, the forward-looking statements contained in this presentation relate only to events as of the date on which the statements are made and are based on information available
to us as of the date of this presentation. We undertake no obligation to update any forward-looking statements made in this presentation to reflect events or circumstances after the date
of this presentation or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations
disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential
impact of any future mergers, acquisitions, dispositions or investments.
Non-GAAP Financial Measures
This presentation includes certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Margin, Free Cash Flow and Contribution Profit, which
we use to supplement our results presented in accordance with U.S. generally accepted accounting principles ("GAAP"). These non-GAAP financial measures, which may not be
comparable to other similarly titled measures of performance used by other companies, are presented to enhance investors' overall understanding of our financial performance and
should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. 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. We define and calculate Adjusted Gross Margin as Adjusted Gross Profit (which we define and calculate as Gross Profit before the
impact of amortization of acquired intangible assets; depreciation and amortization; and stock-based compensation) divided by net revenue. We define and calculate Free Cash Flow as
Adjusted EBITDA less investments into property and equipment and capitalized software, adjusted for sources or uses of cash from changes in net working capital and sources or uses of
cash from net cash interest, and less corporate cash taxes paid. We define and calculate Contribution Profit as Adjusted Gross Profit less external marketing expense. Reconciliations of
Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Margin and Contribution Profit to their most directly comparable financial measures calculated in accordance with GAAP are
provided in the Financial Reconciliation section of this presentation.
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