DraftKings (DKNG) 16 Feb 242023 Q4 Earnings call transcript

Good day, and welcome to the DraftKings Q4 2023 Earnings Call.

[Operator Instructions] As a reminder, this call is being recorded. I would now like to turn the call over to Stanton Dodge, Chief Legal Officer.

You may begin.

thank joining and today. everyone, morning, you us for Good discussed may during statements uncertainties Certain to SEC differ as results actual make our from cause call that and in constitute could filings, factors materially risks, statements we results to our this forecast. forward-looking our our subject that other historical from further or are We by law. required other than assume as no responsibility to update forward-looking statements

be DraftKings' be substitute operating or with report non-GAAP to filed available found the website During These this SEC. financial certain GAAP. in useful measures on measures call, with in in believe we release as are the financial discuss not evaluating non-GAAP in management GAAP should prepared of measures may Reconciliations most performance. our isolation Form directly measures can and XX-K be on our these our for will that annual comparable earnings in which accordance results also presentation, considered DraftKings' a

today, and Robins, some opening have call Officer review share an on update of provide Hosting Jason and will Park, will our Chief business; Chief who our Co-Founder Executive of of Financial who remarks the a we Jason Officer DraftKings, DraftKings, financials. and

I then over now open will to questions. the Jason line the We call Robins. turn will to

DraftKings. XXXX Good people conditions when ] we our which positioned that I morning, described thrive is [ challenging. year, shared and DraftKings and year made would Last thank In for more to time, you business letter, that us all company I execute, our this culture year of proving at for joining. effectively letter. first end became a well wrote a that

with XX% November. the to As fiscal XXXX, you've in late increased team outcomes year customer-friendly Revenue seen, year-over-year very our in occasion. rose even

company nearly year-over-year positive in $XXX More fiscal importantly, posted XXXX X first EBITDA improved in and quarters million adjusted history. our adjusted by year EBITDA we

#X better improvements number made the revenue iGaming highlights, gaming customer Beyond OSB serve share, and operate teams more We goals on the meet will leaders set and experience and double aspirational value U.S. position some exceed also the to operational and our confidence same to drivers expenses focused be we analytics, We financial and others. of the and the our their in our efficiently. on and leaned gained to in in items. focus areas data drive for improved a quarter. third customers taking our combined share those and our This We product our year, gross empowered on goals. to core giving us essentially down in cut and largely heavily including

there innings can We and operational are U.S. still gaming be still excellence. in that the industry, online gained and through is the early innovation of share

differentiators. We to as and product focus will continue key customer experience on

while scale our focusing efficiency to leverage heavily in important We will areas optimization. on and continue also invest to

We initiatives enhance and and will cost superior business. number of both a lifetime continue of to advantage, have values acquisition we competitive Having focus on our beyond. customer the ultimate planned the core is XXXX value in to and drivers

to we success been do we But and as years. take over consistently new we've have In of not continue also We competition our any the efficient. granted. importantly, drive while to share past, able more becoming face recent the simultaneously gain growth for

in our maintain We working hard have edge. team to are the and right place

on my mind. Going into XXXX, there are X main opportunities

and big pursue people our our empower The opportunities. to continuing great to entrepreneurial first culture is foster

higher and contribute of next to at stretch, them developing levels. The allow leaders that second is opportunities our grow and giving them crop

leveraging The for third which flow, our value cash is to shareholders. we expect to generate free maximize order in our

and Jackpocket into lottery enter agreement the DraftKings growing an have rapidly to vertical. U.S. excited are the bring family We to digital

and OSB tremendous in a really differentiated a to not by look just optimizing customers our our together is to way new customer provide to but for core We working and enjoy the LTV forward and our overall position to CAC. this iGaming value to U.S. product base. combined Importantly, strengthen the

for I be our excited continue a about believe In continue key business. and Most to doubt the against even yet our that fantastic am closing, we about very place team of have importantly, XXXX we unbelievably in priorities serving am year. will the customers excited I have execute drafting, will and year no better. the in I I have effectively place, quality our growing we this XXXX is to plans that

that, to generated to We we will results Park. tirelessly work over XXXX. turn the With I it momentum incredible in Jason will produce great on and build

I'll year note discussed that full on non-GAAP measures Please guidance Thank quarter all hit updated XXXX. EBITDA fourth and and except our you, basis. Jason. statement are XXXX a revenue, for for the performance income adjusted highlights, our including

very As Jason results. our is in up mentioned, is the showing and organization executing well, that

our fourth across revenue we billion great and $XXX retention more produced for Better mature by generate as million transitioned $XX $XX In fiscal value million EBITDA. EBITDA year-over-year into states adjusted year-over-year of national engagement XX%. performance and flow-through gross increased and year resulted XXXX, margin which of nearly and versus and by $XXX further the versus improved continued XXXX respectively. grew Adjusted grew marketing. revenue XX% more adjusted million, nearly efficient iGaming. XXXX we and revenue for in percentage and customer improved EBITDA points core drivers in $X.X quarter, and our than In marketing reduced Adjusted X% promotional impacted and higher-than-expected million XXX quarter acquisition, as basis reinvestment our and percentage sales the and resulted in adjusted positive adjusted more higher Sportsbook hold we OSB delivered EBITDA positively handle to marketing expense of

was we and impacted trading EBITDA respectively. and well continue by ahead expectations $XX revenue to mix our positively and adjusted percentage million, as hold million improve parlay Sportsbook and capabilities. XX.X% of Structural trend $XX our This optimize

December the primarily of X As you while quarter, in now, well outcomes customer-friendly expectations. weeks very in are final sport November, by aware with consistent fourth of were the was

due to our the which expectations. for a X.X% percentage $XXX EBITDA to outcomes, were compared was respectively, of and hold to and million Sportsbook quarter revenue $XXX million, headwind sport adjusted fourth actual Our

year XXXX Moving guidance. on our to full

in We are cost revenue fixed rapid for growth, continued scaled adjusted poised coupled EBITDA strong due a with structure. to a increase

In to XXXX, are adjusted range $XXX and fiscal our $X.X XXXX billion guidance $X.X billion guided revenue fiscal EBITDA $X.XX revenue to million. million $XXX million November adjusted to of improving we year of billion guidance $XXX to and XXXX Today, of to $XXX EBITDA billion our we $X.X to million. year range

improvements for QX the $XX revenue expectations and trends innovation the million retention acquisition, adjusted million improvement trading improvement. improvement. percentage in improvement exceed accounts and and as a management Higher result adjusted million continued Customer of EBITDA QX risk to in structural $XX engagement for the marketing $XX ongoing Sportsbook of of of mix of million date and revenue EBITDA well hold as due improvement product the $XX as initiatives. continued These account to bet and and has to year-over-year optimization

perspective range. intra-year revenue XXXX, XX% quarter an approximately through first expect increase year-over-year to fourth the grow second in to quarter revenue XX% XX% and we year-over-year each From in to

fourth quarter $XXX the be approximately $XXX adjusted in million quarter. EBITDA the above the quarter, nearly first and in to expect in second million breakeven We

we Importantly, free now are flow. also guiding cash

net well in CapEx and in costs $XXX and we of billion in income. $XXX approximately as million the from of of to on million Therefore, cash generate capital software with cash acquisition and fund year using changes working our flow expect approximately Jackpocket. to capitalized development source between cash free end a as annual of million based XXXX interest approximately will before We $X.X modest $XXX million proposed $XXX

and beginning Investor to our released Day flow our we further year optimize explore last ways to discussed and generate and this Looking capital free as cash positive the structure. we at to expect night, ahead, letter increasing starting are

revenue number long-term several Our offers sustainable growth concludes adjusted questions. expectation EBITDA over for margin open will That line maximize shareholders. the for our of now expansion remarks, our a we options years for us returns and and the next to

David first Jefferies. Instructions] Katz [Operator comes Our from with question

the quarter. on Congrats

to talk is delve kinds part where about come from? kinds advancements, is looks little next if and So it a product sort betting, for the going really And the of what domestic of of what's all further you I focus I your where into like? to in could next suppose? wanted sports functionality phase features of the play,

question, good picture. very very a big It's

that or at think make side think lot definitely both a least it noted -- question. accessible of to I audience. side done like to better that opportunity, think sounds you as your in-play larger a product and -- more that is I on is and of developing. I part can there's broadcast interesting also sort product to be early on more very the of the stages a experience And huge still

remember, things. recently. to move room other I a Progressive growth just we still parlays Parlay launched of just there's of mean, and sorts of lot think on organic I

development strong continue should So that product to increase. is still very in its and parlay drive mix early

then good out a And be planned. product going team's thunder on, the that number year throughout we'll rolling we that steal stuff other but lots there's I'm to we of my that not have have initiatives of

I is to years early and will that the evolve lot we of of things a still happen it's the stages, exciting grow. time, the think to remember And think going experience early customer think pretty a over product that lots the very really it's will key way works. change still coming thing bit. I the room greatly It's quite and to super so A days.

decisions a just And things and forward, we more like a more of Or a quickly of are as about business if capital I it Jackpocket, for going respect vehicle think may -- customer that's return, allocation that this it as and to a are more -- seems contemplated? returns structure cash little follow acquisition is that bit nice these up me. function there like with generates but just

Yes.

we'll we're accumulating more latter. with of return maximize how it's for looking think shareholder sorts all our options balance the at sheet. capital that I the on be different to There's

will priority Lottery with you forever. very see, the that. gaming oldest the I on And going squarely around A how audience we're about think in is in talked the been though, U.S. of We think It's winning U.S. absolutely in is form what is massive. to strategy. Jackpocket I is is stay line The

And the effectively that about very at that analysis customers than we and higher XX% overlap gaming. were those mass you acquire customers will lower noted, iGaming what that from forms and didn't. we to OSB as customers know DraftKings, products on saw of customers that we who way very analysis spend in a we efficient did the extraordinarily overlap from the in it's And online we to overlapped see other cross-sell tax did, than

DFS that that can LTV as customers think of And core high also but is provided a lots advantage reason us really we only not for I believe too. that So over. there's thing to acquisition, cheap there cross that's an

look this we of entering if cross-sell, the kind that's a So of for playbook customers built-up database, worked having is can active I you think that at us having states, new down doubling on that. base an

question Bank with next of Shaun comes Our from America. Kelley

the you how Jason a out or Jason, bit little I fourth a activity just hoping quarter could perspective. played was on comment promotional from

didn't fourth quarter. sequential between a in overall, the ago So we quarter see improvement the that saw year the we third quite promotions and

we what new obviously, help we saw as strategically mix kind customers, And out landscape business if given -- and changes, NBA, plenty about and of kind little there? into the you of just us January? So characterize a are XQ as NFL characterize sport of it through the you just levels seeing nail-biting and bit launches, move could between off there

Yes.

things So a play here. at couple of I mean, there's

dollar fixed stretch First, that X-week worst to basis we've due hold of public ever cost of as mean sport And sport for lower had we amount a outcomes obviously, I a promotions, from the company. a had outcomes.

But basis look XXX going XXX for that's So down points go of up. naturally to the outcomes if numbers, may year-over-year. at sort it just was adjusted you to

think blowout we customer quarter a perspective. from had acquisition also I a

little those to So you're promotions, were significantly isolate side that even going happens. existing have the promotion when year-over-year. down to higher And bit to retention a more customer you rate if

that, exactly XXX was there, where a XXX quarter when also -- some front all playing think the blowout you're customer even seeing numbers still I year-over-year. as the just So pretty acquisition outcomes trends you and from and some for the And of seeing in much from outcomes, acquisition. is really we're out just adjust good bps that we to it despite lower leave But actually noise expected. on

be around of you business of just a tolerance in And sense talk we or helpful. lot could commit of want loss our in The this Very it? there's couple a [ to you business, forecast for if seems risk to kind given again, probably this those perspective attribute losing a to from can willing out, today, follow-up, ramp to belief sort at of actually What's you for business least move little we years Jackpocket. or -- my that just a it organic is you'd you've like, invest of more contribution that as probably your consolidate a what growth get bit trying XXXX. to while the ] also business. of about capital heck Because this

So XXXX. balance or help and losses those potential X in us maybe investment

Yes.

if all, it change will of will a closes it not First 'XX, cause guide. closes, not us material to of impact. regardless when in this our have It

be a talking this So year. let low And clear think will next I on single-digit We're losses year positive year. me be that.

next on is timing and close synergy realize the I we depending of is much how real much, upside can think year how question there.

expect sort just upside, to anything, will of a commit think, kind any some it yet. date to synergies don't If close we're don't drag. have but be, of I definitive be to that of I given this timing hesitant But we of pleasant

the think not to have synergies and And going positive? Is some of for to for able be to are we that's close it regardless So capture real expected be clear, XXXX. can the 'XX. not 'XX. that question we synergies accelerate currently? pegged when is really, slightly going meaningful the Or guide And to not we pay anything, a But XXXX that's drag will not a currently that start be, something be to just closing this in if we're we timing. in should really of our on positive, certainly of certain EBITDA given change completely this I

comes with Morgan Stephen Stanley. question next from Our Grambling

[Audio Gap]

Our next from Greff comes Morgan Stanley. question Joe with

question, you spike we for huge fourth answer might you JPMorgan. the activity in answer mix Joe GGR, And if to to a really way in only parley the have that the bets mix what look you on How what's this, December state versus -- cut another quarter, -- parlay Parlay too. reported parlay you handle what depending bet what or mix to parlay Illinois, it, look XXXX? -- at number for was handle you maybe If for had assumption the want at of Greff mix the detailed from by growth want how in -- or how November. was then it

representative what's on to of other parlay there? with going Specifically states activity? respect that is And

Yes.

have So for it. XX%. report were for the error been fourth Illinois quarter, we an around the that overstated We think there December may in

something So this that's And into. we XX% quarter. it But still the for fourth continued we're year. expect digging increase around was

any Parlay put are for out numbers we haven't forecasting be. We to what exact mix

many of -- this betting some think moving parts. There's somebody in so mentioned I game earlier.

mix less may things because still consumers, just remember but to as are is moving. lower of it, monetization. to monetization have therefore, levers adopted you're being to In have people rapid nature parlay a going good and hold, very bedding, see for have thing of lots course, it's the of And different for by increasingly game going of

mix little on obviously, going for in this always but Those out monetization. where have So levers, to in not But only increase dig off we we it's to looks XX% to your big are something and that keep QX, with is mind, are you're what's to to going the and not data, hold Illinois question, only in figure have it's that answer the levers but lever. me. the a Parlay

Farley Robin comes question from with next Our UBS.

moment. Jackpocket the to back for go to a acquisition wanted I

between like significant Just the a of overlap sounds understand customer to the X kind bases. pretty already It there's opportunity.

even idea states more the that seem more if Or it amount? new significant Jackpocket of like not would opportunity in number small is to that than penetrate and states. is you're where operating although So is relatively there that the yet, a

wondering there's just help so if So think comes the you us where since from? about incremental overlap could already much

fact of to that data of demographic similar I first, psychographical customers that number looked question. that verify type to points mean, and overlap different we other a us data at stuff. customer. very And shows from great are it's the behavioral Yes, the there's a

or that near was I the OSB X to think cross-sell. And idea CRM achieve overlap put effort we've from cross-sell is actual nowhere the been able iGaming. that towards with to it's

above, iGaming OSB any upside ton And or think able that. achieve We rates. efforts. effort of towards have we put there been So the that's with or there's And we to the we've cross-sell a meaningful it's I and of OSB through best much cross-sell do the best. like DFS in we real something iGaming industry feel think higher to rates whether our to

to have still not thing are we're our competitor I is imagine audience, there's there. with natural those other upside if of overlap of products the seeing many So ton and us. And a probably using

an think also OSB opportunity to Jackpocket with and to customers there's I maybe our may effectively in I market should the still So more playing competitors, that say. database database, in iGaming, but be

think that's number I one. So

every X right, just has this new And is, then like absolutely that DFS opens, state number you're for us. been is

built-in around this tons know the play nation base. of have that there's people We line. customer We

With in is lottery the legislative -- about don't lottery great courier to launch. need things this, in and OSB lottery you action most get iGaming, courier digital -- states order unlike too,

but lottery, to Director you some through this running of in. and new up would get get grow will to that and state every bring It is the kind lower the we approval the course, hurdle need a much usually in customers new market, makes of don't action, something, which And need executive You lottery want. lottery states. think legislative branch, it

vast you're right. the in of a to majority it's And So I potentially states. think absolutely a opportunity great get product U.S.

believe iGaming, to on OSB then states that and the be on, as I us, gift will more it launch giving. time that like and more will if goes think you, continue keeps

Okay. your to this just Or you follow-up do you for of are in looking likely like have Are related a more acquisition product? to acquisition? your overall. things customer that And terms with things philosophy technology do for more to

technology feel good about our we think pretty I stack.

of and I are think buying on I go we moves I on. bolt-ons here help diligence in right. think and about online M&A. that of to be I may you'll super left to small think think these a helpful disciplined more going this U.S. us really there gaming. to that win did that And us there be companies of But strategic kind it's we enhance. think going ton don't see is This rash one we're in are

We underwrote I think, be very feel we conservative, a it very And carefully to with run. it real assumptions. has home high like potential

you're take going and capital at to way do us like continue look a that, of different the create you're sorts to others. think many when I things not going I be to to think we're So going us about see This And are shareholder ways pursuing is really think see -- M&A to super you're sense There and see that of value. all you is make only accumulating that to disciplined it. us lot it. the

I fits general that's best as the I in company. think it So it. we're way think disciplined to describe how with a And

how we M&A side, the process, you lot do at analytic deal. the very use this thing, underwrite a careful look strong development when we and discretion. business of very we If that's We're exactly approach a we partnership with deals on

with question Politzer next Fargo. Wells Our Dan from comes

just on structural wanted one, First hold. to touch

degree a XXXX, more reflect seeing market just XXX XX.X% that's what conservatism? about I talked XX% competitor coming to you're guess to think think into XXXX. recently higher this come has base. over the and year-over-year off there. I And about does versus points I up in basis get and system extent casual guided I launched as But betters points of basis XX growing another for you to some are your of you

think there, this first, some that I you I'm noted upside I too. that glad earlier. feel do, there's I

LTV but is we're monetization mix like actually to increase so be of the Really always still spectrum. there we leave are other standpoint, same upside improve think us, betting hold, cautious probably levers. we that more a from an some that with little right, had hold to the we've not sure sorts there's that -- want good for make very some that can pushing you're a things I think of you one reasons live do all And the there. might at of customers do nice different time, flexibility across I for

more and think in, spend sorts last customers do I in of more customers but coming casual across And few the all been been the there's spend. months, of spectrum sort of there's of

acquisition now. seeing can't different acquisition really overall just that. other the casual like really just is So But like or at more anything board. customer I strong say, across seems look It anything than not it and really just strong tremendously skewing right customer

add, hold just would our I should that commit has we realized. philosophy that have on to something empirically been rate Dan, to we guiding

of QX XXXX than we but So as philosophy to got on been Jason's you our hold that, point, actualized. only we've what lot better saw to to thought, in embedded structural conviction to rate commit a was in has hold empirically our improve us gave going the guide. increase But and that work we've to

helpful. Got it. follow-up. And just That's for my then

what of debt? interpret maturing you some do might to on think the leverage comments structure? incurring capital that some as I should you we alluded and maybe flow like? how company in referring Are long you term, And kind positive, prepared a ratio, becoming to the think how that? and optimizing healthy mean, about remarks You cash and look maybe about

I now. mean looking at that we're is something that actively right

still doing have on more months. say that the we're So coming we'll in but our to work,

year quickly. before obviously be look that November, in just very at we the Jackpocket. add, of we to end roughly then going And $X.X cash of million the mean, I if Yes, multiyear including our $XXX acquisition that I our you at billion accumulating for forecasted cash we're the outlined this balance would plan

options those So exploring it's a great we're to position in. all and be in,

comes with Our Fishman MoffettNathanson. next question from Robert

experience Chief the her to Business Amazon about how appetite Growth Sports I'm as and rights does wondering, Donahue can explore recent at impact of prior DraftKings' hiring Officer. Mary the curious, sports road? down you potentially I'm talk

board. excited not she industry. and she Yes. was ESPN at relationships reputation has on many throughout and really I at at ecosystem years for We're and mean Amazon, an strong really incredible our Mary only was

I she do live That's excited we're looking very that different wouldn't not rights? brings and ecosystem is at sets I us that parts live say this will of mind. a way right. a sports, bring think we something right understand is to So signal her of business any on. and of skill that on our But a lot -- number sports, experiences the help all with folks who own now

understanding side other be that the future think that explore having of So I the opportunities from in in negotiations. helpful we future table, very will

and bring team. to excited going a a lot of as she's bring to as think experience very perspective unique well real So of depth the her to on I

prioritizing in maybe you 'XX 'XX? switching how over gears, size And around the And averages any frequency the the just drive bet you're results? bet that detail other discuss in more versus increased can you the to one growth mentioned

We at the about engaged, it's table really engage customer. we for first have we us, customer that's look If how the do stakes. both. I mean,

if You have can't that. do anything don't you

to app. it's personalizing If use that and great. try more looking experience, to they're there. meet where they're to makes them and looking sticky the that really, customer feel then I they're we they're so And So then then to like they try of types the that new new sports, comfortable we and we think try it's for If really for start And bets to at. it easy about and them. provide us, interesting, taking

on we also you that might interesting basketball, other bets to if you we're going always So show basketball, you you're we think betting might intriguing. basketball find show but

I there's all anything pull. to and in that thing get can to of try And is something just really it's we've good not done And right the with starts the a you So I front that force to think customers. the of products doing customer sorts job that. right levers different think important

with Joe comes Our next SIG. question Stauff from

or size one or launches? I be don't Carolina may state if maybe know, in you of you the wondering similar new North see the was do could, I Do or Jason, -- to like it Ohio see you maybe opportunity. that smaller discuss Massachusetts

was question the parlay second older And the in to I in the states then is penetration is between new had it get right, how and it those you discuss say, penetration, that could can parlay And reasonable in especially differences that with states. wondering that to higher? the I'm being just same if And older see Hopefully, makes levels states. is that easy sense. newer that you the ratchet that lower

Yes.

at way. on mean, launch North a It's population-wise contribute meaningful it's it I similar. you're will playbook's in it I this mean, to Ohio, we Carolina right, be first top be our So smaller and in the question, expect state, I think but great point, be a honed. I little a And XX and think a will pretty standard.

mentioned that differently any ones going you're state think to a few to always last Carolina the that Carolina edges. North North other approach than to around optimizations I year. launch going be we a the make not did we're But you we very similar So see that

parlay far states. newer absolutely as as you're And right, yes, mix,

to have a change for they've customers time product certain for a been and years harder you when the first to them to products introducing easier try always it's get you're to get behavior. using things new think that I them the way if to in

absolutely year the have mix trends continuing direction. we trends the in move oldest grind, are of perspective, are every that a parlay in single continuing to So the right it's from more but states the a

states. us will continuous a just the one just will another for that that's in And seeing will tailwind take It eventually, think I a be over they converge little time. So with new we're longer. what

Stanley. from with Morgan Grambling next Our Stephen comes question

me? hear you can There,

Yes we can hear you.

Excellent. Thank you. that. Apologies for

million I $XX going draftings stay both? to any Jackpot, X be a $XXX get folded that to new And the on XXXX assume is does single ramp app into app approved? to guess or in or states question million So the just,

a brand around app. its branding to current lot us, it stages, plan For of is the we're the keep in but and questions still early and as the own product,

has good to ecosystems, with a that like that's they available see second to -- their And sorry, And we all and we'll want think products strong I'm a all obviously, so casino brand, then lot I explore going the there, do what I we're think I But was audience we opportunities Jackpocket think, time, I they've brand. the current plan. GNOG. keep all have to it. over brands, And just that but with integrate built to there's think that how a a question? across and evolves do

out look you as to -- target the Does XXXX...

Yes.

any are assumptions. or no our So new synergy OSB in iGaming and other included states

So we're assuming just current footprint.

there's lot So more lottery and that do OSB of we customers, some more upside more states launch. assume a states iGaming if cross-selling and

I more seamless lottery As state. launch a earlier, a noted it's to lot

legislative and working need the deal with state. to don't really the process. of more out You directly a go through It's going

time. technology customers process. So able part which if lots states. is we over a no and because they've I the service something hardest lot years, a multiple I look they've that feel of really of at the be there's that's is will confidence launched And that, you that in one different same scale building last at and to ramp number the few hardest solution and think is already solved, in The legislative of their will states part think

that of very came hopeful and close OSB, them. are will And remember, already year a they in, year. we they're for last course, huge this there's states. to I mean, is very that state states we're Texas And as know, passing revenue Texas big

New them. York state huge for is a

York New year the think do next so. or iGaming could in I

that's big opportunity. another So

that to believe is yet come. is a in if So really, earlier, will continue because as increase I into you're be more best synergy our are, just I baked to said I and none this that all and hope assumptions, value an more iGaming will states, of any which think asset we upside. is And the that all of just we there that's OSB believer,

That's in cash Jason looping super flow. on Park, helpful. free And maybe here

out, As free conversion we you generally anticipate cash evolving? look flow do further how

Yes.

cumulative $XXX flow, and XXXX, It's So flow, cash the we guides cap of plus cash for capital delta EBITDA income. about some free CapEx, outlined impact that and free interest the software net good working across million. adjusted between

flow on cash EBITDA. the yield free a So adjusted that's

I steady being cash components think time. over about flow adjusted between as more and the EBITDA free

is the free conversion So as up, go going EBITDA cash Stephen. flow to grows, adjusted percentage

comes & Company. with Needham Our from question next Bernie McTernan

Jason, XX% Just you on to average. in said retention over a start, letter, customer period the X-year

a was the than is improving years what Is that couple ago. true that apples-to-apples? Or Investor that that quoted was that think -- Day in of I numbers better retention is not the much?

think I But true. mean is and sure go apples-to-apples to I retention have exactly is back but check. that if improving. Yes, it's absolutely, I'm not I

Okay. specifically. to Any call drivers

than adopt also product. mean you're just more advancement think seeing the like I really organic as product keeps the that, natural more sports on it's growth that more active But biggest That's Yes. product. and I and just more think else. them one. I sticky anything more the just customers largely which things and it's

are constantly optimizing We also our CRM.

So that's and too. a lever I we're should wins. all finding mention big testing time the

that I test were to marketing So greatly product the and and biggest over the our learn, of continuing between the and couple team improving think drivers. last years

of lot entire customer and experience across many our But I service there's -- different improved. have dimensions the across think our things, customer us products helped the that We're has so I there's improve think a retention. right?

Great. you Barstool thoughts to early on just your and as could And get customer but days, be wanted and acquisition retention vehicle a it's I guys. that what know for

Barstool over and really a very thrilled have very worked we working with times the that and we partner It's on. ton a to excited We're years be again. know data well them when many with about of that

about mean, historical really of being is and terms deal. able gets this -- data good us it underwrite this felt we having as to So in I as

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Beynon Macquarie. comes with next Chad question from Our

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from question Truist Securities. Barry Jonas next with Our comes

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next question from Jordan with comes Our Citizens JMP. Bender

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Our comes with Kelly from Jed & next Company. Oppenheimer question

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question. Great

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next Our question Brandt comes from Montour Barclays. with

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Our Craig-Hallum with Capital next question Group. from comes Sigdahl Ryan

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next from comes Our John CBRE. question with DeCree

maybe of lot question iGaming. but a on a high-level Covered ground,

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team we helpful to you That's all And Jason, agree. on XXXX. a the and commentary. congratulations great

Really you it. so much. Thank appreciate

for There any like are no back to over further the time. at Jason Robins closing questions call turn this remarks. I'd to

today's beyond. an DraftKings, opportunities in excited for you all and and call. us for Well, we're so the first, Really, year about was joining XXXX thank excellent on XXXX

the think with I even in XXXX for future. forward is to I look us. going everyone be and bigger safe Thank year to you. you a stays chatting hope and well

your disconnect. for have This does now you a participation. Thank conclude day. you and the program, great Everyone, may