DraftKings Results Presentation Deck
DRAFTKINGS P&L AND ADJUSTED EBITDA RECONCILIATION
(INCLUDES SBTECH FROM APRIL 24, 2020 TO JUNE 30, 2020)
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)
(in thousands)
Revenue
Memo: B2C
Memo: B2B
Cost of revenue
Sales and marketing
General and administrative
Product and technology
Loss from operations
Interest income (expense), net
Loss before income tax expense
Income tax expense
Loss from equity method investment
Net Loss
Adjusted for:
Depreciation and amortization
(excluding acquired intangibles)
Amortization of acquired intangibles
Interest (income) expense, net
Income tax (benefit) expense
Stock-based compensation (1)
Transaction-related costs (2)
Litigation, settlement, and related costs (3)
Other non-recurring costs and special project
costs (4)
Other non-operating costs
Adjusted EBITDA
$
Three months ended June 30,
2020
2019
70,931
55,977
14,954
(47,330)
(46,188)
(107,308)
(30,549)
(160,444)
(588)
(161,032)
(323)
(82)
$ (161,437)
$
5,448
13,220
588
323
54,486
25,255
2,022
2,517
83
(57,495)
$ 57,390
57,390
(17,834)
(29,671)
(26,183)
(12,234)
(28,532)
426
(28,106)
(7)
$ (28,113)
3,274
(426)
7
1,844
1,276
814
223
$ (21,101)
$
$
$
Six months ended June 30
2020
2019
159,473 $
144,519
14,954
(90,746)
(99,894)
(146,804)
(48,590)
(226,561)
(2,939)
(229,500)
(332)
(285)
(230,117) $
10,152
13,220
2,939
332
59,328
30,907
3,352
2,646
285
(106,956) $
The amounts for the quarter 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 CEO.
Mainly includes capital markets advisory, consulting, accounting and legal expenses incurred in connection with the Business Combination, including related evaluation, negotiation and integration costs.
Also includes bonuses, paid in the second quarter of 2020, to certain employees in connection with the consummation of the Business Combination. In 2019 these costs related to exploratory acquisition
activities.
Includes primarily external legal costs related to litigation and litigation settlement costs deemed unrelated to our core business operations.
Includes primarily consulting, advisory and other costs relating to non-recurring items and special projects, including, for the three and six months ended June 30, 2019, the cost of our move to our new
Boston headquarters, executive search costs and, for the three and six months ended June 30, 2020, implementation of internal controls over financial reporting and tax structuring advisory costs.
125,482
125,482
(39,386)
(66,516)
(52,996)
(25,322)
(58,738)
1,087
(57,651)
(16)
(57,667)
6,199
(1,087)
16
6,675
1,276
1,701
1,371
(41,516)
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