Financial Data and Key Metrics Changes - Revenue grew 39% year-over-year to $1.95 billion, with an adjusted EBITDA loss of $59 million [12][13] - Adjusted gross margin improved by 300 basis points year-over-year to 40% [14] - Customer acquisition cost (CAC) improved nearly 20% year-over-year [13] Business Line Data and Key Metrics Changes - Online sportsbook gross gaming revenue increased by 39% year-over-year [12][13] - iGaming gross gaming revenue grew by 26% compared to the third quarter of 2023 [12][13] - Newly acquired online sportsbook and iGaming customers increased by 14% year-over-year [13] Market Data and Key Metrics Changes - Structural sportsbook hold percentage increased year-over-year, with expectations of 11% for fiscal year 2025 [18][54] - Promotional reinvestment rates improved by 300 basis points year-over-year [14] Company Strategy and Development Direction - The company is focused on improving its sportsbook product and expanding into new markets, including Missouri, which recently legalized online sports betting [10][11] - Fiscal year 2025 adjusted EBITDA guidance is reiterated at $900 million to $1 billion, with a new revenue guidance range of $6.2 billion to $6.6 billion, indicating a year-over-year growth of 27% to 35% [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a customer-friendly stretch of NFL outcomes impacting short-term revenue and adjusted EBITDA but remains optimistic about the overall business trajectory [7][11] - The company is cautious about customer acquisition promotions, aiming to balance growth and profitability [16][19] Other Important Information - The company plans to generate approximately $850 million in free cash flow for fiscal year 2025 [18][94] - Management is exploring opportunities in non-sports betting prediction markets, particularly around election markets [50] Q&A Session Summary Question: Flow-through assumptions for next year - Management believes a long-term flow-through rate of 50% is appropriate, but for next year, it is expected to be around 39% due to strong customer acquisition [20][21] Question: Mitigating factors for revenue impacts - Management noted that volatility in sports outcomes can affect short-term results, but over longer periods, performance normalizes [24][26] Question: Illinois promotional activity adjustments - Management is still refining promotional strategies to offset higher taxes in Illinois, indicating that full realization of these strategies is still in progress [31][32] Question: Revenue guidance breakdown - Management indicated that the 31% revenue growth guidance is based on market growth, market share stability, and promotional extraction [34][36] Question: Customer acquisition and retention levels - Management stated that retention levels between OSB and iGaming customers are similar, with OSB showing slightly better retention [70][71] Question: Future state opportunities for OSB and iGaming - Management is eyeing states like Texas, Georgia, and Minnesota for potential OSB expansion, while New York and Illinois are key targets for iGaming [88][89] Question: Free cash flow usage and buybacks - Management plans to be more active with share repurchases as free cash flow scales, while the impact of sports outcomes on hold is a mix of team outcomes and player props [94]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from__________ to ___________. Commission file number 001-41379 DRAFTKINGS INC. (Exact name of registrant as specified in its charter) Nevada 87-2764212 (State or other j ...

Credit Agreement and Facility Details - DraftKings Inc. has entered into a Credit Agreement for a senior secured revolving credit facility of $500 million[13] - The proceeds from the Revolving Facility Loans, Swingline Loans, and Letters of Credit will be used for working capital, general corporate purposes, and Permitted Business Acquisitions[13] - The company plans to repay all indebtedness under the Existing Credit Agreement dated December 20, 2022, and terminate all commitments related to it[13] - The Transactions include the establishment of the Revolving Credit Facility, repayment of existing debt, and termination of guarantees and liens under the Existing Credit Agreement[13] - The Credit Agreement involves multiple entities including DraftKings Inc., DK Crown Holdings Inc., Golden Nugget Online Gaming, Inc., and Jackpocket LLC as Borrowers[12] - Morgan Stanley Senior Funding, Inc. serves as the Administrative Agent and Collateral Agent for the Lenders and Secured Parties[12] - The Agreement includes provisions for the issuance of Letters of Credit, Swingline Loans, and the funding of Borrowings[3] - The Agreement outlines conditions for lending, including financial statements, compliance with laws, and maintaining records[5] - The Agreement specifies events of default, including failure to meet financial covenants and breaches of representations and warranties[6] - The Agreement includes detailed schedules and exhibits, such as forms for Borrowing Requests, Compliance Certificates, and U.S. Tax Compliance Certificates[9] - The Closing Date for the Revolving Credit Facility is set for November 7, 2024[70] - Closing Date Refinancing involves repayment or discharge of Indebtedness under the Existing Credit Agreement[72] Financial Terms and Rates - ABR (Alternate Base Rate) is defined as the highest of (a) Federal Funds Effective Rate plus 0.50%, (b) Prime Rate, or (c) Term SOFR Rate for a one-month Interest Period plus 1.00%[14] - Applicable Commitment Fee is 0.375% per annum until the first Adjustment Date, then adjusted based on Net First Lien Leverage Ratio[21] - Applicable Margin for Revolving Facility Loans is 2.25% for Term SOFR Loans and 1.25% for ABR Loans until the first Adjustment Date[25] - Net First Lien Leverage Ratio greater than or equal to 2.00:1.00 results in an Applicable Commitment Fee of 0.375%[22] - Net First Lien Leverage Ratio less than 2.00:1.00 results in an Applicable Commitment Fee of 0.250%[22] - Applicable Margin for Term SOFR Loans is 2.25% when Net First Lien Leverage Ratio is greater than or equal to 2.00:1.00[26] - Applicable Margin for ABR Loans is 1.25% when Net First Lien Leverage Ratio is greater than or equal to 2.00:1.00[26] - Applicable Margin for Term SOFR Loans decreases to 1.75% when Net First Lien Leverage Ratio is less than 1.50:1.00[26] - Applicable Margin for ABR Loans decreases to 0.75% when Net First Lien Leverage Ratio is less than 1.50:1.00[26] - Changes in Applicable Margin and Commitment Fee are effective three Business Days after financial statements and Compliance Certificate are delivered[26] - The "Floor" for ABR is set at a rate of interest equal to 1.00% per annum, and for Term SOFR, it is set at 0.00% per annum[144] Benchmark and Interest Rate Adjustments - Benchmark Replacement is defined as the sum of an alternate benchmark rate selected by the Administrative Agent and the Borrower, considering market conventions and governmental recommendations, with adjustments not increasing the Applicable Margin[40] - Benchmark Replacement Adjustment involves a spread adjustment or method for calculating it, selected by the Administrative Agent and Borrowers, considering governmental recommendations and market conventions[41] - Benchmark Replacement Conforming Changes include technical, administrative, or operational changes to reflect the adoption and implementation of a Benchmark Replacement, decided by the Administrative Agent[42] - Benchmark Replacement Date is the earliest occurrence of specific events related to the cessation or non-representativeness of the current Benchmark[44] - Benchmark Transition Event refers to the occurrence of events such as the cessation of Benchmark provision by its administrator or regulatory supervisor, or the announcement of its non-representativeness[46][48] - Benchmark Unavailability Period is the period during which no Benchmark Replacement has replaced the current Benchmark for all purposes under the Loan Documents[50] Borrowing and Loan Details - Borrowing Minimum for TermSOFR Loans is $1,000,000, for ABR Loans is $1,000,000, and for Swingline Loans is $250,000[55] - Borrowing Multiple for TermSOFR Loans is $500,000, for ABR Loans is $250,000, and for Swingline Loans is $250,000[56] - Business Day excludes weekends and holidays in New York City, and for Term SOFR Loans, also excludes days that are not U.S. Government Securities Business Days[58] - Interest Period for TermSOFR Borrowing can be 1, 3, 6, or 12 months, depending on lender availability and Administrative Agent agreement[190] - Interest Payment Date for TermSOFR Loans includes the last day of the Interest Period and dates of refinancing or conversion[188] Financial Metrics and Ratios - Consolidated Net Income excludes non-cash compensation charges, non-cash costs from stock option plans, and other non-cash expenses[80] - Cumulative Credit includes the greater of $150 million or 50% of EBITDA for the most recent Test Period[85] - Consolidated Debt includes aggregate principal amounts of Indebtedness under paragraphs (a), (b), (e), and (j), excluding undrawn letters of credit or bank guarantees[78] - Interest Coverage Ratio is calculated as the ratio of EBITDA to Cash Interest Expense for the most recent Test Period[185] - Interest Expense includes gross interest expense, capitalized interest, and excludes certain non-cash items and amortization[187] - The Net First Lien Leverage Ratio must not exceed 4.00 to 1.00 for Incremental Loans or Incremental Equivalent Debt secured by Other First Liens, or 5.00 to 1.00 for those secured by Junior Liens[167] - The Net Total Leverage Ratio must not exceed 5.00 to 1.00 for unsecured Incremental Loans or Incremental Equivalent Debt, or the Interest Coverage Ratio must be at least 2.00 to 1.00[167] - The aggregate principal amount of all Incremental Equivalent Debt on any date of incurrence must not exceed the Incremental Amount, together with any outstanding Incremental Revolving Facilities and/or Incremental Term Facilities[170] - The Inside Maturity Date Debt must not exceed the greater of $90,000,000 or 30.0% of EBITDA calculated on a Pro Forma Basis for the most recently ended Test Period[183] Collateral and Security - Collateral Agent is designated as Morgan Stanley Senior Funding, Inc.[75] - Letter of credit rights with a value less than $5,000,000 in the aggregate are excluded from collateral[123] - Commercial Tort Claims with damages claimed less than $5,000,000 in the aggregate are excluded from collateral[123] - Equity Interests or Indebtedness with excessive cost or adverse tax consequences are excluded from collateral[125] - More than 65.0% of the issued and outstanding Equity Interests of certain Subsidiaries are excluded from collateral[125] - Subsidiaries primarily holding player deposits, reserves, or winnings and/or Gaming Licenses are excluded from collateral[128] - Swap Obligations that become illegal under the Commodity Exchange Act are excluded from collateral[129] Legal and Regulatory Compliance - Change in Law includes compliance with Dodd-Frank Act, Basel II, III, and IV, and other regulatory directives[68] - Data Privacy Laws encompass all Applicable Laws related to the transmission, storage, security, or protection of data and information[92] - Debtor Relief Laws include the U.S. Bankruptcy Code and other similar laws related to debtor relief or corporate insolvency[93] - Environmental laws cover regulations related to the environment, hazardous materials, and public health and safety[111] - Gaming Authority refers to any Governmental Authority with regulatory control over Gaming activities[151] - Gaming Licenses include any permits, licenses, or authorizations issued by a Gaming Authority to Parent or its Affiliates[154] Miscellaneous Definitions and Provisions - Change in Control occurs if a Person or group acquires more than 40.0% of the voting power of Parent's Voting Stock, or if Parent fails to own 100% of the Equity Interests of any other Borrower[66] - Defaulting Lender is defined as a Lender that fails to fund Loans or meet other obligations, subject to specific conditions and exclusions[96] - Designated Non-Cash Consideration refers to the fair market value of non-cash consideration received in Asset Sales, less cash equivalents received in subsequent dispositions[97] - Disqualified Stock includes Equity Interests that are mandatorily redeemable, redeemable at the holder's option, or provide for scheduled cash dividends[100] - EBITDA for Parent and Subsidiaries is calculated as Consolidated Net Income plus specified adjustments, excluding certain items[102] - Provision for taxes includes state, franchise, gross receipts, margins, and foreign withholding taxes, with penalties and interest related to tax examinations[104] - Depreciation and amortization expenses cover intangible assets, deferred financing fees, and pension-related amortization[104] - Business optimization expenses include restructuring charges, inventory optimization, facility closures, and acquisition-related costs[104] - Non-cash charges are treated as cash charges in subsequent periods when cash disbursements are made[104] - Expenses related to equity issuance, acquisitions, and debt modifications are included, even if the transactions are not successful[104] - Costs from management equity plans, stock options, and employee benefit plans are included if funded with cash proceeds from equity issuance[104] - Losses from new projects are included for 12 months post-completion, provided they are certified by a Responsible Officer[106] - Joint venture EBITDA is included proportionally based on the company's share in the joint venture[106] - Fantasy Sports Contests are defined as activities where winning outcomes reflect knowledge and skill[138] - Federal Funds Effective Rate is defined as the weighted average of overnight Federal funds transactions[141] - A "Foreign Lender" is defined as any Lender that is not a "United States Person" as defined by Section 7701(a)(30) of the Code[145] - "Fronting Exposure" refers to the exposure of a Defaulting Lender's Revolving Facility Percentage of Revolving L/C Exposure and Swingline Loans[146] - "FSHCO" refers to any Subsidiary of Parent that holds Equity Interests in one or more Foreign Subsidiaries or other FSHCOs[147] - "GAAP" refers to the generally accepted accounting principles in the United States, with provisions for amendments in case of material changes required by Governmental Authorities[148] - "Gaming" includes various forms of games and related services, whether played for real money, virtual currency, or for free[149] - "Gaming Business" encompasses the research, design, development, marketing, and operation of Gaming products and services[152] - "Immaterial Subsidiary" is defined as any Subsidiary with revenue less than 5.0% of the consolidated revenues of Parent and its Subsidiaries[164] - The excess of EBITDA calculated on a Pro Forma Basis for the most recently ended Test Period over the aggregate outstanding principal amount of Incremental Term Loans and Incremental Revolving Facility Commitments is capped at $300,000,000 or 100.0% of EBITDA, whichever is greater[167] - Letter of Credit Sublimit on the Closing Date is $125,000,000[199] - Issuing Bank Fees are defined in Section 2.12(b) and relate to the issuance of Letters of Credit[193] - Lien includes mortgages, pledges, security interests, and similar encumbrances, but excludes operating leases and sale agreements[200] - Investment is defined in Section 6.04 and relates to financial commitments or acquisitions[191]

DraftKings (DKNG) came out with a quarterly loss of $0.60 per share versus the Zacks Consensus Estimate of a loss of $0.42. This compares to loss of $0.61 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -42.86%. A quarter ago, it was expected that this company would post a loss of $0.03 per share when it actually produced earnings of $0.12, delivering a surprise of 500%.Over the last four quarters, the company has surpassed co ...

In a Thursday interview with CNBC's Jim Cramer, DraftKings CEO Jason Robins said the online sports betting industry is at a turning point as more people across the country realize they can gamble legally."We're at a very, you know, important inflection point in the industry," Robins said. "Most people assume that it's legal in most states now if not all. And we're just seeing a lot of great growth."DraftKings cut its full-year guidance for 2024 when it reported Thursday after the close, sending shares down ...

BOSTON, Nov. 07, 2024 (GLOBE NEWSWIRE) -- DraftKings Inc. (Nasdaq: DKNG) (“DraftKings” or the “Company”) today announced results for the third quarter of 2024. The Company also posted a third quarter 2024 business update and an earnings presentation on the Investor Relations section of its website at investors.draftkings.com. Third Quarter 2024 Highlights For the three months ended September 30, 2024, DraftKings reported revenue of $1,095 million, an increase of $306 million, or 39%, compared to $790 millio ...

DraftKings Inc. (DKNG) is scheduled to report third-quarter 2024 results on Nov. 7, after the closing bell. In the last reported quarter, the company registered an earnings surprise of 500%.DKNG’s Estimates Trend UpwardThe Zacks Consensus Estimate for third-quarter adjusted loss per share has narrowed to 42 cents from 43 cents in the past 30 days. In the prior-year quarter, the company had reported an adjusted loss per share of 61 cents. For revenues, the consensus mark is pegged at $1.12 billion, suggestin ...

As the sports betting industry explodes, DraftKings has established itself as one of the premier platforms.Like plenty of other younger growth stocks, online sports betting company DraftKings (DKNG 1.05%) has experienced its fair share of ups and downs since going public in April 2020. After reaching an all-time high in March 2021, the stock has lost just over half of its value.While there are plenty of challenges and hurdles that DraftKings will need to iron out (along with the rest of the sports-betting i ...

For Immediate ReleasesChicago, IL – November 1, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include including Marriott International, Inc. (MAR) , DraftKings Inc. (DKNG) , Choice Hotels International, Inc. (CHH) and Airbnb, Inc. (ABNB) . Here are highlights from Friday’s Analyst Blog:Marriott Gears Up to Report Q3 Ear ...

DraftKings Inc (NASDAQ:DKNG) stock is 0.3% higher to trade at $36.65 at last check, and sports a 35.9% year-over-year lead. Shares spent a good portion of October attempting -- and failing -- to conquer the $39 level, after a September rally fell short of the $43 level. Most recently, however, the security pulled back to a historically bullish trendline that may just be its ticket higher.According to data from Schaeffer's Senior Quantitative Analyst Rocky White, DraftKings stock is now within striking dista ...