DraftKings is undergoing significant alterations to its executive team. Their Chief Financial Officer, Jason Park, is departing to assume the position of the company’s inaugural Chief Transformation Officer. He has been a part of DraftKings for nearly five years and will commence his new role on May 1st.
Park will concentrate on leveraging technology to enhance the company’s efficiency. He will also be responsible for integrating the $750 million acquisition of Jackpocket, which was declared last month.
DraftKings’ Chief Executive Officer, Jason Robins, stated that Park is the ideal candidate for this new position due to his experience as CFO and his work in private equity. Robins is confident that Park will contribute to DraftKings becoming even more lucrative in the future.
To replace Park, DraftKings has selected Ellingson as their new Chief Financial Officer.
Alan Ellison will take over the position from Parker, who presently serves as DraftKings’ Senior Vice President of Finance and Analytics. He will assume the role of Chief Financial Officer on the first of May.
DraftKings stated that Ellison’s role is to continue to increase shareholder value by propelling the business to achieve its financial objectives.
Ellison joined DraftKings in February of 2020, initially serving as Vice President of Financial Planning and Analysis. He later ascended to Senior Vice President of Finance and took on his current position in January of the previous year.
Before joining DraftKings, Ellison held various positions at Iron Mountain.
“I am delighted to appoint Alan as our Chief Financial Officer,” said Robbins. “He will continue to guide the company down the clear path we have already established. Alan has been with DraftKings for over four years. He has extensive experience within our finance and analytics team, and most importantly, he deeply understands our core value drivers and is focused on maximizing shareholder value.”
DraftKings has set its sights on growth potential in 2024.
The announcement of the proposed acquisition of Jackpocket arrived on the same day that DraftKings released its 2023 financial results.
Over the past year, revenue surged by 63% to $3.7 billion, while operating losses decreased from $1.5 billion to $789.2 million. Additionally, adjusted EBITDA came in at a negative $151 million, compared to a negative $721.8 million in the previous year.
DraftKings also concluded 2023 on a strong note, with revenue in the fourth quarter increasing by 44% to $1.2 billion. Operating losses amounted to $43.8 million, down from $232.2 million in the fourth quarter of 2022.
DraftKings has seen a considerable uptick in its performance, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) shifting from a deficit of $49.9 million to a gain of $151 million.
This positive trajectory has prompted DraftKings to adjust its financial projections for the present year.
The company now expects its initial full-year adjusted EBITDA in 2024, with profits anticipated to hit $510 million, an increase from the prior estimate of $450 million.
Income for 2024 is also projected to be elevated, spanning from $4.65 billion to $4.9 billion, in contrast to the earlier prediction of $4.5 billion to $4.8 billion.
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