Slide 1: Q1 2023 Earnings Presentation
Q1 2023 EARNINGS PRESENTATION May 4, 2023 | 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: Q1 and Current Business Highlights
Q1 and Current Business Highlights 1 Q1 results exceeded expectations; revenue of $770M increased 84% YoY and Adjusted EBITDA(1) of ($222M) improved by $68M YoY 2 Raising FY 2023 revenue guidance midpoint by 8% to $3,185M and FY 2023 Adjusted EBITDA(1) guidance midpoint by $85M to ($315M) 3 Expect Q
Slide 4: Raising Midpoints of FY2023 Revenue Guidance and Adj. EBITDA Guidance
Raising Midpoints of FY2023 Revenue Guidance by 8% and FY2023 Adj. EBITDA(1) Guidance by $85M Updated FY 2023 Guidance vs. Prior FY 2023 Guidance $ Millions Higher OSB Hold Higher OSB Hold Stronger Customer February 16th due to Structural due to Favorable Q1 Retention & Engagement Expense Recognitio
Slide 5: Driving Significant Growth in Contribution Profit in Most Mature State Vintages
Driving Significant Growth in Contribution Profit(1) in our Most Mature State Vintages Performance of State Vintages in Q1 2023 Percentage; Basis Points YoY Revenue YoY Adjusted Gross Margin(4) YoY External Growth Increase Marketing Change 2018-2019 Vintage(2) +80% +1,300 bps -20% 2020-2021 Vintage(
Slide 6: Our Pace of Customer Acquisition has Accelerated in Recent State Launches
Our Pace of Customer Acquisition has Accelerated in Recent State Launches Average Percentage of Adult Population Acquired 30 Days After Launch(1) Percentage 3.4% 1.1% 0.6% 2018-2019 Vintage Average 2020-2021 Vintage Average 2022-2023 Vintage Average (NJ, WV, IN, PA, NH) (CO, IL, TN, IA, MI, VA, WY,
Slide 7: Appendix
APPENDIX | 7
Slide 8: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Earnings Per Share and Contribution Profit, which are non-GAAP financial measures that DraftKings uses to supplement its results presented in accordance with GAAP. The Compa
Slide 9: 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 31-Mar-23 31-Dec-22 30-Sep-22 30-Jun-22 31-Mar-22 GAAP Operating Expenses Cost of Revenue $522 $485 $373 $313 $313 Sales and Marketing $389 $345 $322 $198 $321 Genera
Slide 10: Reconciliation of Gross Profit to Adjusted Gross Profit and Adjusted Gross Margin
Reconciliation of Gross Profit to Adjusted Gross Profit and Adjusted Gross Margin GAAP Gross Profit to Non-GAAP Adjusted Gross Profit and Adjusted Gross Margin Reconciliations $ Millions Q1 2023 Q1 2022 Revenue $770 $417 GAAP Gross Profit $248 $104 Depreciation and Amortization $14 $9 Amortization o
Slide 11: 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 March 31 2023 2022 Revenue $ 769,652 $ 417,205 Cost of revenue 521,740 313,379 Sales and marketing 389,133 321,452 Product and technology 88,088 81,352 G
Slide 12: DraftKings KPI Comparison
DraftKings KPI Comparison Key Performance Indicators Millions; Dollars ◼ Monthly Unique Payers (“MUPs”) Three months ended March 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, or M
Slide 13: Non-GAAP Adjusted Earnings Per Share Reconciliation
Non-GAAP Adjusted Earnings Per Share Reconciliation Adjusted Earnings Per Share Reconciliation: Three Months Ended March 31, 2023 Dollars $(0.51) (1) (2) (3) Note: Weighted average number of shares used to calculate Adjusted EPS for Q1 2023 was 455mm; totals may not sum due to rounding. (1) Refers t
Slide 14: DraftKings Share Count Detail
DraftKings Share Count Detail Share Count as of March 31, 2023 Thousands Common Shares Outstanding (31-March-23) 461,634 Vested Stock Options @ TSM(1) 17,284 Memo: Vested Stock Options 25,842 Diluted Shares Outstanding (With Vested Stock Options @ TSM) 478,918 DEAC Private Placement Warrants(2) 766