DraftKings Inc.

Good day and thank you for standing by. Welcome to the DraftKings first quarter 2025 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'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, Michael DiLeglio, Senior Director of Investor Relations. Please go ahead.

Good morning, everyone, and thank you 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 release and presentation, which can be found on our website and in our quarterly report on Form 10-Q 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. Following Jason's remarks, our chief financial officer, Alan Ellingson, 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. Thank you, Mike.

Good morning, everyone, and thank you all for joining. We are off to a strong start to the year. If not for customer-friendly sport outcomes in March, we would be raising our fiscal year 2025 revenue and adjusted EBITDA guidance. There are four important takeaways that we are sharing today. First, our core value drivers are outperforming our expectations. Our product enhancements are driving higher structural sportsbook hold percentage and more efficient deployment of promotions, while sportsbook handle is strong and consistent with our expectations. We now expect revenue to grow 32% year-over-year in fiscal year 2025 and 36% year-over-year spanning the second through fourth quarters. Second, sport outcomes were once again customer-friendly in the first quarter. A favorable Super Bowl was more than offset by favorites dominating the men's NCAA basketball tournament. For the first time in tournament history, all four number one seeds reached the final four and three number two seeds and one number three seed reached the elite eight. Across the entire tournament, Higher seeds won at an 82% rate, which is the highest rate in history. We acknowledge that customer-friendly sport outcomes have impacted recent quarters and are continuously analyzing our data, including historical performance by bet type, to fully understand the gap between our structural and actual hold percentage. Our analyses provide a strong confidence that the recent volatility we've experienced is random in nature. Third, we are well-positioned for the evolving macroeconomic environment. Online gaming was resilient in more mature jurisdictions globally during the global financial crisis, and today our customer metrics continue to be strong, consistent with forecasted trends. We are also beginning to realize efficiency as broader corporate demand softens in areas such as advertising. Fourth, we have a healthy balance sheet. We completed the first quarter with $1.1 billion of cash after repurchasing 3.7 million of our shares. Looking ahead, We expect our balance sheet to strengthen further as free cash flow accumulates. With that, I will turn it over to our Chief Financial Officer, Alan Ellingson.