DraftKings (DKNG) investor relations material

Business evolution and market opportunity

• Expanded total addressable market from $20B in 2020 to $55–$80B, driven by new products and prediction markets.

• Continued customer growth in mature states through deeper engagement and new offerings like Same Game Parlay for Golf.

• Live betting penetration in the U.S. is growing but remains below European levels; significant investment in technology to improve uptime and user experience.

• Launched a fully translated Spanish app to capture World Cup engagement and reach new communities.

• Industry consolidation has led to two operators controlling 80% of the market, with competition now focused on product and technology rather than promotions.

Financial performance and growth strategy

• Achieved $500M in adjusted EBITDA over the past two quarters, with high conversion to free cash flow.

• Gross profit per customer cohort has increased every year, reflecting effective customer monetization and engagement strategies.

• Ongoing investment in new products and prediction markets is expected to drive long-term profitability despite upfront costs.

• Roadmap for the next 18–24 months includes further product launches and customer engagement initiatives.

Product integration and technology

• Transitioned from seven separate apps to a unified super app, enhancing cross-selling and simplifying the customer experience across jurisdictions.

• Super app integration allows for more efficient national marketing and maximizes return on marketing spend.

• Prediction market product is being rapidly enhanced, aiming to match sportsbook depth and experience.

• Technology, marketing, product quality, and trust are key competitive moats, with real-time data and uptime as differentiators.