Slide 1: Q3 2023 Earnings Presentation
Q3 2023 EARNINGS PRESENTATION November 2, 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: Q3 and Current Business Highlights
Q3 and Current Business Highlights 1 Q3 performance exceeded expectations; revenue of $790M increased 57% YoY and Adj. EBITDA(1) of ($153M) improved by $111M YoY 2 Achieved #1 U.S. OSB and iGaming Gross Gaming Revenue (“GGR”) share(2) in the U.S. in Q3 at 33%; share increased over 1,000 basis points
Slide 4: Capturing Higher Share of U.S. OSB and iGaming
Capturing Higher Share of U.S. OSB and iGaming Combined OSB and iGaming GGR Share(1) 33% 30% 27% 27% Share Percentage 25% 21% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Sources: State Gaming Reports and DraftKings internal data Notes: Gross revenue as calculated pursuant to each state’s definit
Slide 5: Raising FY 2023 Guidance Midpoint by 6% for Revenue and $100M for Adjusted EBITDA
Raising FY 2023 Guidance Midpoint by 6% for Revenue and $100M for Adjusted EBITDA(1) Updated FY 2023 Guidance vs. Prior FY 2023 Guidance $ Millions Stronger Customer Higher OSB Hold due August 3rd Retention & Engagement to Structural Unfavorable Q3 Anticipated Launch November 2nd FY 2023 Guidance(2)
Slide 6: Nearly $1B of incremental revenue and more than $500M incremental Adjusted EBITDA in 2024
We expect nearly $1B of incremental revenue and more than $500M of incremental Adjusted EBITDA(1) on a YoY basis in 2024 Expected DraftKings Revenue and Adj. EBITDA(1) 2023E (2) (2) +$505 2024E +$955 $400 $4,650 53% Adjusted EBITDA Flow- Millions of Dollars Millions of Dollars Through(3) $3,695 Reve
Slide 7: Appendix
APPENDIX | 7
Slide 8: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes Adjusted EBITDA, Adjusted EBITDA Flow-Through Percentage 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 Adjusted EBITDA, Adjusted E
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 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 $543 $510 $522 $485 $373 $313 $313 Sales and Marketing $
Slide 10: 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 September 30 Nine months ended September 30, 2023 2022 2023 2022 Revenue $ 789,957 $ 501,938 $ 2,434,536 $ 1,385,328 Cost of revenue 543,454 372,692 1,57
Slide 11: DraftKings KPI Comparison
DraftKings KPI Comparison Key Performance Indicators Millions; Dollars ◼ Monthly Unique Payers (“MUPs”) Three months ended September 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,
Slide 12: Non-GAAP Adjusted Earnings Per Share Reconciliation
Non-GAAP Adjusted Earnings Per Share Reconciliation Adjusted Earnings Per Share Reconciliation: Three Months Ended September 30, 2023 Dollars (1) (2) (3) Note: Weighted average number of shares used to calculate Adjusted EPS for Q3 2023 was 465mm; totals may not sum due to rounding. (1) Refers to Dr
Slide 13: DraftKings Share Count Detail
DraftKings Share Count Detail Share Count as of September 30, 2023 Thousands Common Shares Outstanding (30-September-23) 465,906 Vested Stock Options @ TSM(1) 20,218 Memo: Vested Stock Options 23,156 Diluted Shares Outstanding (With Vested Stock Options @ TSM) 486,124 DEAC Private Placement Warrants