Slide 1: Q1 2025 Earnings Presentation
Q1 2025 EARNINGS PRESENTATION May 8, 2025 | 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 Our core value drivers are outperforming our expectations; structural Sportsbook hold percentage and promotional efficiency improved YoY in Q1 2025 2 If not for customer-friendly outcomes in March, we would be raising our FY 2025 revenue and Adj. EBITDA(1) guidance(2) 3
Slide 4: We achieved strong Q1 2025 results across our core value drivers
We achieved strong Q1 2025 results across our core value drivers $1,409 Q1 2025 Highlights: • Sportsbook handle increased 16% year- over-year • Structural Sportsbook hold percentage increased to 10.4% as parlay handle mix increased 370 basis points year-over-year +$234 • Promotional reinvestment dec
Slide 5: We are revising our FY 2025 revenue guidance midpoint to $6.3B and Adj. EBITDA guidance midpoint to $850M
We are revising our FY 2025 revenue guidance midpoint to $6.3B and Adj. EBITDA(1) guidance midpoint to $850M FY 2025 Guidance vs. Prior FY 2025 Guidance $ Millions FY 2025 Guidance Customer-friendly Sport Tax and Regulatory FY 2025 Guidance Provided 2/13/2025(2) Core Value Drivers(3) Outcomes in YTD
Slide 6: Higher seeds won at a record high rate in this year's NCAA men's basketball tournament
Higher seeds won at a record high rate in this year’s NCAA men’s basketball tournament Win Percentage by Higher Seeds in the NCAA Men’s Basketball Tournament 82% 81% 80% 79% 78% 77% 77% 77% 76% 76% 76% 75% 75% 74% 73% 73% Win Percentage 71% 71% 71% 71% 71% Median = 71% 70% 70% 69% 69% 69% 69% 68% 68
Slide 7: Online gaming was resilient in more mature jurisdictions globally during the Global Financial Crisis
Online gaming was resilient in more mature jurisdictions globally during the Global Financial Crisis GDP Indexed to 2005 Online Gaming GGR Indexed to 2005 France Germany 4.69 4.28 4.41 3.25 3.03 2.74 2.56 2.16 2.22 2.07 1.67 1.67 1.05 1.33 1.04 1.30 1.20 1.10 1.13 1.10 1.13 1.17 1.19 1.09 1.11 1.07
Slide 8: Appendix
APPENDIX | 8
Slide 9: Our Sportsbook handle and Sportsbook revenue continue to increase on a YoY basis
Our Sportsbook handle(1) and Sportsbook revenue continue to increase on a YoY basis $14,902 $13,880 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 $825 $
Slide 10: Our iGaming revenue is continuing to grow on a YoY basis
Our iGaming revenue is continuing to grow on a YoY basis iGaming Revenue $426 $423 $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 Q1 2025 | 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) 10.4 10.1 9.3 8.4 7.5 7.1 6.6 6.2 6.0 Millions 5.2 4.9 4.4 4.5 4.0 3.8 3.4 3.2 2.6 2.4 1.9 1.8 1.8 1.9 1.9 1.9 1.9 1.7 1.7 1.7 1.7 1.4 0.8 0.9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes Adjusted EBITDA, Adjusted Operating Expenses, and Adjusted Earnings (Loss) Per Share, which are non-GAAP financial measures that DraftKings uses to supplement its results presented in accordance with GAAP. The Company believes Adjusted EBITDA, A
Slide 13: Reconciliation of GAAP Expenses to Non-GAAP Expenses
Reconciliation of GAAP Expenses to Non-GAAP Expenses GAAP to Non-GAAP Expense Reconciliation $ Millions 31-Mar-25 31-Dec-24 30-Sep-24 30-Jun-24 31-Mar-24 31-Dec-23 30-Sep-23 30-Jun-23 31-Mar-23 GAAP Expenses Cost of Revenue $844 $835 $742 $663 $710 $717 $543 $510 $522 Sales and Marketing $344 $369 $
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 March 31, 2025 2024 Revenue $ 1,408,806 $ 1,174,996 Cost of revenue 843,803 710,069 Sales and marketing 343,680 340,699 ◼ Adjusted EBITDA Product and tec
Slide 15: 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 March 31, 2025 Dollars ($0.05) $0.09 $0.12 ($0.01) $0.16 ($0.07) (1) (2) (3) GAAP Reported EPS Stock Based Other Non-GAAP Adj. Amort. Of Acquisition Tax Impact
Slide 16: DraftKings Share Count Detail
DraftKings Share Count Detail Share Count as of March 31, 2025 Thousands Common Shares Outstanding (31-March-25) 496,339 Vested Stock Options @ TSM(1) 15,300 Memo: Vested Stock Options 19,060 Diluted Shares Outstanding (With Vested Stock Options @ TSM) 511,639 DEAC Private Placement Warrants(2) 82 G
Slide 17: Comparison of Monthly Unique Payers and Average Revenue per MUP
Comparison of Monthly Unique Payers and Average Revenue per MUP 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