DraftKings has made significant alterations to their leadership group. Jason Park, who has served as the Chief Financial Officer (CFO) for nearly five years, is stepping down to assume the role of Chief Transformation Officer.
Park will commence his new position on May 1st. In this new capacity, he will be responsible for leveraging technology to enhance the company’s operational efficiency. He will also oversee the seamless integration of the company’s recent $750 million acquisition of Jackpocket. This acquisition was announced last month.
DraftKings’ CEO, Jason Robins, stated that Park was the ideal candidate for this new position due to his extensive experience and expertise. Robins is confident that Park’s contributions will facilitate the company’s future financial growth.
To succeed Park as CFO, DraftKings has recruited Ellingson.
Alan Ellison will take the reins from Parker as the new Chief Financial Officer of DraftKings. Ellison, currently serving as the Senior Vice President of Finance and Analytics at DraftKings, will formally step into his new position on May 1st.
DraftKings announced that Ellison’s objective is to continue propelling business expansion and attaining financial targets, ultimately amplifying shareholder value.
Ellison joined DraftKings in February 2020, initially as Vice President of Financial Planning and Analysis. He was subsequently elevated to Senior Vice President of Finance and later assumed his current role in January of the previous year.
Prior to joining DraftKings, Ellison held various positions at Iron Mountain.
“I am delighted to elevate Alan to the position of CFO,” said Robbins. “He will continue to guide the company along its established trajectory. Alan has been a part of the DraftKings team for over four years. He possesses extensive expertise in finance and analytics teams, and most importantly, he deeply comprehends our core value drivers and is dedicated to maximizing shareholder value.”
DraftKings has established ambitious growth goals for 2024.
On the same day DraftKings unveiled its 2023 financial outcomes, details of the proposed acquisition of Jack Pocket were disclosed.
Revenue surged by 63% in the past year, reaching $3.7 billion, while operating losses contracted from $1.5 billion to $789.2 million. Additionally, adjusted EBITDA came in at negative $151 million, compared to negative $721.8 million in the preceding year.
DraftKings also concluded 2023 on a strong note, with fourth-quarter revenue 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 remarkable improvement 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.
Based on this positive trajectory, DraftKings has adjusted its financial projections for the current year.
The company now expects its inaugural year of profitability, with adjusted EBITDA reaching a peak of $510 million in 2024. This represents a substantial increase from the previous projection of $450 million.
Concerning revenue, DraftKings anticipates generating between $4.65 billion and $4.9 billion in 2024, surpassing the previous forecast of $4.5 billion to $4.8 billion.
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