DraftKings details senior management reshuffle as CFO steps aside
Park will move into the newly created role on 1 May. He has served as CFO at DraftKings for almost five years, joining the business in June 2019.
In the new role, Park will lead initiatives to deploy technologies as part of efforts to capture additional operating efficiencies. He will also oversee the integration of the proposed $750m (£590m/€690m) acquisition of Jackpocket, announced last month.
“I have asked Park to take on a new role at DraftKings to address and capture large efficiency opportunities that I expect will generate significant incremental profitability over the coming years,” said DraftKings co-founder and CEO Jason Robins said.
“Jason’s unique skill set, based on his accomplishments over the last five years as CFO and 11 years as a private equity operating partner, will allow us to further improve how we operate. In addition, I’m confident he will unlock the benefits of our proposed acquisition of Jackpocket following its closing to strengthen DraftKings’ position in US online gaming.”
DraftKings names Ellingson as new CFO
Replacing Park is Alan Ellingson, currently senior vice-president of finance and analytics at DraftKings. He becomes CFO with effect from 1 May.
DraftKings said Ellingson will be tasked with continuing to improve shareholder value by driving the business towards its financial objectives.
Ellingson joined DraftKings in February 2020, starting as vice-president of financial planning and analysis. He went on to become senior vice-president of finance and took on his current role in January last year.
Prior to his time with DraftKings, Ellingson worked in several roles at Iron Mountain.
“I am very excited to elevate Alan to CFO,” Robins said. “He will continue to lead the company on the very clear path that we have laid out. Alan has been with DraftKings for more than four years. He has extensive experience across our finance and analytics teams and, most importantly, deeply understands our core value drivers and focus on maximising shareholder value.”
DraftKings sets out growth potential for 2024
Details of the proposed Jackpocket acquisition were announced on the same day DraftKings posted its 2023 results.
Over the past year, revenue was up 63% to $3.7bn while loss from operations was cut from $1.50bn to $789.2m. In addition, negative adjusted EBITDA was $151.0m, compared to the previous year’s $721.8m.
DraftKings also ended 2023 on a high, with revenue in Q4 rising 44% to $1.2bn. Loss from operations was $43.8m compared to $232.2m in Q4 2022. Adjusted EBITDA increased from a negative $49.9m to positive $151.0m.
Based on the figures, DraftKings published improved forecasts for the current financial year.
DraftKings now expects to report its first full year of positive adjusted EBITDA during 2024, with earnings of up to $510m. This is higher than the previously stated $450m.
As for revenue in 2024, this is set to be between $4.65bn and $4.90bn, up from the range of $4.50bn to $4.80bn.