Slide 1: FY 2024 Earnings Presentation
FY 2024 EARNINGS PRESENTATION February 13, 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: Current business highlights
Current business highlights 1 FY 2024 was a strong year with revenue +30% YoY to $4.8B, Adj. EBITDA(1) +$332M YoY to $181M, and positive Free Cash Flow(1) for the first time in our history 2 We acquired 3.5M new customers at record low CACs(2) in FY 2024 while handle, actual sportsbook hold percenta
Slide 4: We achieved strong FY 2024 results across our core value drivers
We achieved strong FY 2024 results across our core value drivers $4,768 FY 2024 Core Value Drivers: • Acquired 3.5 million new customers at record low customer acquisition costs(2) • Sportsbook and iGaming handle increased 21% year-over-year +$1,103 • Structural sportsbook hold percentage Millions o
Slide 5: Raising FY 2025 revenue guidance midpoint and reaffirming Adj. EBITDA guidance
While customer-friendly sport outcomes impacted FY 2024 results, we are raising FY 2025 revenue guidance midpoint and reaffirming our FY 2025 Adj. EBITDA(1) guidance FY 2024 Results vs. Prior FY 2024 Guidance FY 2025 Guidance vs. Prior FY 2025 Guidance $ Millions $ Millions Customer- friendly FY 202
Slide 6: Reaffirming FY 2025 Adj. EBITDA guidance of $900M to $1.0B
We are reaffirming FY 2025 Adj. EBITDA(1) guidance of $900M to $1.0B FY 2024 Sport Remaining Expected FY 2025 Revenue FY 2024 Revenue: Outcome Revenue FY 2025 Revenue Guidance $4,768M Impact: $487M Growth: $1,195M Midpoint: $6,450M $950 $436 Millions of Dollars $514 $333 $181 FY 2024 Adj. EBITDA(1)
Slide 7: Appendix
APPENDIX | 7
Slide 8: Our sportsbook handle and sportsbook revenue continue to increase
Our sportsbook handle(1) and sportsbook revenue continue to increase $14,902 Sportsbook Handle Sportsbook Revenue $12,943 Sportsbook Net Revenue Margin (%)(2) $12,001 $10,793 $10,365 Millions of Dollars $8,842 $8,190 $8,292 $7,359 $6,122 7.5 $4,509 $4,553 $761 $734 $687 $657 $825 $467 $402 $516 $427
Slide 9: We expect our structural sportsbook hold percentage to continue to increase
We expect our structural sportsbook hold percentage to continue to increase Actual Sportsbook Hold Percentage ~ 11.0% Structural Sportsbook Hold Percentage 10.5% 9.8% 9.4% 9.2% Percentage (%) 7.7% 7.5% 6.5% 6.5% FY 2021 FY 2022 FY 2023 FY 2024 FY 2025E | 9
Slide 10: Our iGaming revenue is continuing to grow
Our iGaming revenue is continuing to grow iGaming Revenue $426 $370 $361 $352 $351 Millions of Dollars $296 $288 $281 $257 $209 $182 $174 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 | 10
Slide 11: 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(1) 10.1 9.3 8.4 7.5 7.1 6.6 6.2 6.0 5.2 Millions 4.9 4.4 4.5 4.0 3.8 3.4 3.2 2.6 2.4 1.9 1.8 1.9 1.9 1.9 1.9 1.7 1.7 1.7 1.7 1.8 1.4 0.8 0.9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 12: Favorites won 75% or more games in weeks during the 2024 NFL regular season
Favorites won 75% or more games in 10 weeks during the 2024 NFL regular season Number of Weeks Favorites Won 75% or More Games, By NFL Regular Season 10 DraftKings live with sports betting 9 8 7 7 7 6 6 6 6 6 6 Number of Weeks 5 5 5 5 5 5 Average = 4.6 weeks 4 4 4 4 4 4 4 4 4 4 4 4 3 3 3 3 3 3 3 3 2
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes Adjusted EBITDA, Adjusted Operating Expenses, Adjusted Earnings (Loss) Per Share and Free Cash Flow, which are non-GAAP financial measures that DraftKings uses to supplement its results presented in accordance with GAAP. The Company believes Adj
Slide 14: Reconciliation of GAAP Expenses to Non-GAAP Expenses
Reconciliation of GAAP Expenses to Non-GAAP Expenses GAAP to Non-GAAP Expense Reconciliation $ Millions FY 2024 31-Dec-24 30-Sep-24 30-Jun-24 31-Mar-24 FY 2023 31-Dec-23 30-Sep-23 30-Jun-23 31-Mar-23 GAAP Expenses Cost of Revenue $2,951 $835 $742 $663 $710 $2,292 $717 $543 $510 $522 Sales and Market
Slide 15: 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 December 31, Year ended December 31, 2024 2023 2024 2023 Revenue $ 1,392,772 $ 1,230,857 $ 4,767,699 $ 3,665,393 Cost of revenue 834,664 716,658 2,950,56
Slide 16: Non-GAAP Adjusted Basic Earnings (Loss) Per Share Reconciliation
Non-GAAP Adjusted Basic Earnings (Loss) Per Share Reconciliation Adjusted Basic Earnings (Loss) Per Share Reconciliation: Three Months Ended December 31, 2024 Dollars ($0.02) $0.14 $0.08 $0.14 $0.23 ($0.28) (1) (3) GAAP Reported EPS Stock Based Other Non-GAAP Adj.(2) Amort. Of Acquisition Discrete T
Slide 17: DraftKings Share Count Detail
DraftKings Share Count Detail Share Count as of December 31, 2024 Thousands Common Shares Outstanding (31-December-24) 489,071 Vested Stock Options @ TSM(1) 16,941 Memo: Vested Stock Options 20,212 Diluted Shares Outstanding (With Vested Stock Options @ TSM) 506,012 DEAC Private Placement Warrants(2
Slide 18: DraftKings KPI Comparison
DraftKings KPI Comparison Key Performance Indicators Millions; Dollars ◼ Monthly Unique Payers (“MUPs”) Three months ended December 31, — 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, o