Slide 1: Q1 2024 Earnings Presentation
Q1 2024 EARNINGS PRESENTATION May 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: Q1 and current business highlights
Q1 and current business highlights 1 Our revenue growth rate is strong; Q1 2024 revenue of $1,175M increased 53% YoY and our increased FY 2024 revenue guidance midpoint implies growth of 34% YoY 2 Continuing to drive operational efficiency; increasing our FY 2024 Adj. EBITDA(1) guidance midpoint by
Slide 4: Raising FY 2024 guidance midpoint by $125M for revenue and $40M for Adj. EBITDA
Raising FY 2024 guidance midpoint by $125M for revenue and $40M for Adj. EBITDA(1) Updated FY 2024 Guidance vs. Prior FY 2024 Guidance $ Millions Core Value Drivers: Revenue +$185M and Adj. EBITDA +$82M Stronger Customer Higher OSB Hold due FY 2024 Guidance Acquisition, Retention to Structural Unfav
Slide 5: We expect ~$1.2B of incremental revenue and ~$650M of incremental Adj. EBITDA in FY 2024
We expect ~$1.2B of incremental revenue and ~$650M of incremental Adj. EBITDA(1) on a YoY basis in FY 2024 Expected(2) DraftKings Revenue and Adj. EBITDA Assuming Zero Additional OSB and/or iGaming States $4,900 +$1,235 Millions of Dollars $3,665 $500 +$651 ($151) FY 2023 Revenue FY 2023 Adj. EBITDA
Slide 6: Our OSB and iGaming combined share increased YoY in Q1 2024
Our OSB and iGaming combined share increased YoY in Q1 2024 Combined OSB and iGaming GGR Share(1) 31% 27% Q1 2023 Q1 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 OSB an
Slide 7: Appendix
APPENDIX | 7
Slide 8: 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 7.5 7.1 6.6 6.2 6.0 5.2 4.9 4.4 4.5 4.0 Millions 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 Q4 Q1
Slide 9: 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
Slide 10: 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-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 $710 $717 $543 $510 $522 $485 $373 $
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, 2024 2023 Revenue $ 1,174,996 $ 769,652 Cost of revenue 710,069 521,740 Sales and marketing 340,699 389,133 Product and technology 88,815 88,08
Slide 12: Non-GAAP Adjusted Earnings (Loss) Per Share Reconciliation
Non-GAAP Adjusted Earnings (Loss) Per Share Reconciliation Adjusted Earnings (Loss) Per Share Reconciliation: Three Months Ended March 31, 2024 Dollars $0.03 $0.06 $0.07 $0.20 ($0.30) (1) (2) GAAP Reported EPS Stock Based Compensation Other Non-GAAP Adj. Amort. of acq. intangibles Adjusted EPS(3) No
Slide 13: DraftKings Share Count Detail
DraftKings Share Count Detail Share Count as of March 31, 2024 Thousands Common Shares Outstanding (31-March-24) 476,067 Vested Stock Options @ TSM(1) 18,560 Memo: Vested Stock Options 21,237 Diluted Shares Outstanding (With Vested Stock Options @ TSM) 494,627 DEAC Private Placement Warrants(2) 272
Slide 14: 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 o