Slide 1: Q2 2024 Earnings Presentation
Q2 2024 EARNINGS PRESENTATION August 2, 2024 | 1
Slide 2: Legal Disclaimer
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”,
Slide 3: Q2 and current business highlights
Q2 and current business highlights 1 Achieving strong and efficient new customer acquisition; Q2 new customers increased nearly 80% YoY while CAC(1) declined more than 40% YoY 2 Raising(2) FY 2024 revenue guidance midpoint from $4.9B to $5.15B, implying YoY growth of 41%; revising(2) Adj. EBITDA(3)
Slide 4: Raising FY 2024 revenue guidance and lowering FY 2024 Adj. EBITDA guidance
Raising FY 2024 revenue guidance and lowering FY 2024 Adj. EBITDA(1) guidance Updated FY 2024 Guidance vs. Prior FY 2024 Guidance $ Millions Jackpocket and Stronger Customer FY 2024 Guidance Illinois Tax Unfavorable Launching OSB in Acquisition, Retention FY 2024 Guidance Provided 5/2/2024(2) Rate I
Slide 5: Implementing a gaming tax surcharge in certain high tax states beginning 1/1/2025
Implementing a gaming tax surcharge in certain high tax states beginning 1/1/2025 Gaming Tax Surcharge Description For illustrative purposes only • Implementing in high tax OSB states that have multiple operators (Illinois, New York, Pennsylvania, and Vermont) to ensure an operational effective tax
Slide 6: We continue to expect FY 2025 Adj. EBITDA of $900M to $1.0 billion
We continue to expect FY 2025 Adj. EBITDA(1) of $900M to $1.0 billion Updated FY 2025 Adj. EBITDA(1) Compared to Prior Guidance $900 - $1,000 $900 - $1,000 Millions of Dollars (3) Guidance Provided 11/14/2023(2) Illinois Tax Rate Increase Jackpocket and Launching Stronger Customer Acquisition, Guida
Slide 7: Investing in features and functionality to differentiate DraftKings with OSB customers
Investing in features and functionality to differentiate DraftKings with OSB customers Powering Our Own Sports Betting Content Launched in-house player props for NFL, NBA, MLB, NHL, CFB, CBB, and Tennis Broadened Progressive Parlays to include spreads and totals Differentiating Our Live Bett
Slide 8: Developing in-house content and improving content delivery to differentiate in iGaming
Developing in-house content and improving content delivery to differentiate in iGaming Developing New In-house Content Launched ‘Rocket 2’ earlier this year and are trending to double new games released in FY 2024 vs. FY 2023 Introducing new game mechanics including persistent player collectio
Slide 9: Appendix
APPENDIX | 9
Slide 10: The number of unique customers on our platform is rising
The number of unique customers on our platform is rising Unique Customers in the Prior Twelve Months 8.4 7.5 7.1 6.6 6.2 6.0 5.2 4.9 4.4 4.5 Millions 4.0 3.8 3.4 3.2 2.6 2.4 1.9 1.9 1.9 1.9 1.9 1.7 1.7 1.7 1.7 1.8 1.8 1.4 0.9 0.8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 11: Our OSB and iGaming combined share was similar YoY in Q2 2024
Our OSB and iGaming combined share was similar YoY in Q2 2024 Combined OSB and iGaming GGR Share(1) 29.6% 29.8% Q2 2023 Q2 2024 Sources: State Gaming Reports and DraftKings internal data. (1) Share denominator includes all U.S. states where DraftKings and/or Golden Nugget Online Gaming are live with
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes Adjusted EBITDA, which is a non-GAAP financial measure that DraftKings uses to supplement its results presented in accordance with GAAP. The Company believes Adjusted EBITDA is useful in evaluating its operating performance, similar to measures
Slide 13: Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses
Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses GAAP to Non-GAAP Operating Expense Reconciliation $ Millions 30-Jun-24 31-Mar-24 31-Dec-23 30-Sep-23 30-Jun-23 31-Mar-23 31-Dec-22 30-Sep-22 30-Jun-22 31-Mar-22 GAAP Operating Expenses Cost of Revenue $663 $710 $717 $543 $510 $
Slide 14: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA Net Income (Loss) to Non-GAAP Adjusted EBITDA Reconciliation $ Thousands Three months ended June 30, Q2 2024 Q2 2023 Revenue $ 1,104,441 $ 874,927 Cost of revenue 663,414 510,323 Sales and marketing 215,676 207,487 Product and technology 92,655
Slide 15: Non-GAAP Adjusted Diluted Earnings (Loss) Per Share Reconciliation
Non-GAAP Adjusted Diluted Earnings (Loss) Per Share Reconciliation Adjusted Diluted Earnings (Loss) Per Share Reconciliation: Three Months Ended June 30, 2024 Dollars $0.22 $0.02 $0.07 $0.10 $0.17 ($0.15) (1) GAAP Diluted EPS Discrete Tax Benefit Stock-based Amortization of Acquired Other Non-GAAP A
Slide 16: DraftKings Share Count Detail
DraftKings Share Count Detail Share Count as of June 30, 2024 Thousands Common Shares Outstanding (30-June-24) 485,024 Vested Stock Options @ TSM(1) 19,690 Memo: Vested Stock Options 21,822 Diluted Shares Outstanding (With Vested Stock Options @ TSM) 504,714 DEAC Private Placement Warrants(2) 258 GN
Slide 17: DraftKings KPI Comparison
DraftKings KPI Comparison Key Performance Indicators Millions; Dollars Monthly Unique Payers (“MUPs”) Three months ended June 30, — We define MUPs as the number of unique paid users per month who had one or more real-money, paid engagements across one or more of our Sportsbook, iGaming, DFS, or ot