DraftKings Inc.

Good day and thank you for standing by. Welcome to the DraftKings Q1 2023 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, of Stanton Dodge, you may begin.

Good morning, everyone, and thanks for joining us today. Certain statements we make during this call may constitute forward-looking statements that are subject to risks, uncertainties, and other factors as discussed further in our SEC filings that could cause our actual results to differ materially from our historical results or from our forecasts. We assume no responsibility to update forward-looking statements other than as required by law. During this call, Management will also discuss certain non-GAAP financial measures that we believe may be useful in evaluating DraftKings operating performance. These measures should not be considered in isolation or as a substitute for DraftKings financial results prepared in accordance with GAAP. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are available in our earnings presentation, which can be found on our website and in our quarterly report on Form 10Q filed with the SEC. Hosting the call today, we have Jason Robbins, co-founder and chief executive officer of DraftKings, who will share some opening remarks and an update on our business. And Jason Park, chief financial officer of DraftKings, will provide a review of our financials. We will then open the line to questions. I will now turn the call over to Jason Robbins.

Good morning and thank you all for joining. I'm excited to be with you today and share that DraftKings is off to an excellent start in 2023. Revenue growth has been outstanding, supported by strong customer retention, acquisition, and engagement, as well as better structural hold percentage than anticipated. First quarter revenue increased 84% year over year, and we are increasing our full year revenue guidance to a range of $3.135 billion to $3.235 billion, implying growth of 42% year over year at the midpoint, which is pretty remarkable off of a revenue base of $2.2 billion in full year 2022. At the same time, achieving efficiency remains a relentless focus. Our mantra of revenue growth and cost efficiency is gaining even more momentum throughout the organization. Due to both our strong revenue growth and our ongoing efforts to capture efficiency, primarily within external marketing and our fixed costs, we are on the cusp of achieving profitability on an adjusted EBITDA basis. We expect to be approximately break even on an adjusted EBITDA basis in the second quarter, and we expect to achieve nearly $150 million of positive adjusted EBITDA in the fourth quarter. For the full year, we are improving our adjusted EBITDA guidance to a range of negative $290 million to negative $340 million, or an increase of 21% at the midpoint versus our February full year guidance. Turning to our product offerings, DraftKings has continued to introduce unique sports wagering opportunities by most recently launching live fan game parlays for MLB, supported by our in-house trading platform. We continue to invest in our in-house trading capabilities and technology in advance of the NFL season this fall. In iGaming, we estimate that we achieved number one GGR share in the U.S. at 26% in the first quarter. Our homegrown games continue to function as a key differentiator. For example, Our exclusive DraftKings jackpot product is now live in three states across more than 100 slots and table games. We also launched DK Horse, our standalone horse racing app at the end of March, which offers wagering on races from hundreds of domestic and international tracks, including all three Triple Crown races, beginning with this weekend's Kentucky Derby. I am proud of the team and culture we have in place. In particular, I am proud of our team for their relentless focus on efficiency and expense management over the past 12 months. Our work on achieving ands is not done, and we feel great about the trajectory of our business. With that, I will turn it over to Jason Park, Chief Financial Officer.