DAVY VIEW

DraftKings’ investor event, which was rich in detail, will take some time to digest. Its upgraded targets are a reiteration of its prior long-term profit framework, with material unit economics detail provided to help validate its EBITDA opportunity. Based on better-than-expected spend per capita data to date, it has increased its total addressable market forecasts (to $35bn including Canada). This, alongside the contribution from its soon to complete GNOG acquisition, results in an upgrade to its long-term revenue (+24%) and profit forecasts. DraftKings now expects long-term EBITDA to reach >$2bn (also upgraded by +24%) from core operations. As expected, there was no change to its 2022 guidance.