On May 1, Jason Park will assume a newly established position at DraftKings, marking a significant transition after nearly five years as the Chief Financial Officer (CFO) since his start in June 2019.
This strategic move positions Park to spearhead technology deployments aimed at enhancing operational efficiencies and to manage the integration of the impending $750 million acquisition of Jackpocket, a development that was publicized last month.
DraftKings’ co-founder and CEO, Jason Robins, expressed his decision to appoint Park for this crucial role, emphasizing the anticipated benefits in terms of profitability and operational improvements.
Robins highlighted Park’s extensive experience, including five years as DraftKings’ CFO and 11 years as a private equity operating partner, as foundational to driving the company’s growth and optimizing the impending Jackpocket acquisition to solidify DraftKings’ stance in the US online gaming market.
Alan Ellingson is set to fill the vacancy left by Park as CFO, starting May 1.
Having served as the senior vice president of finance and analytics, Ellingson’s promotion is a testament to his impactful contributions since joining DraftKings in February 2020.
His tenure at the company has been marked by significant advancements, including his pivotal role in financial planning and analytics, and his prior experience at Iron Mountain further complements his capabilities.
Robins praised Ellingson’s promotion, recognizing his deep understanding of DraftKings’ financial and analytical frameworks and his commitment to driving shareholder value.
This leadership change aligns with the company’s objectives towards financial stability and growth.
In tandem with these executive changes, DraftKings disclosed its financial performance for 2023, showcasing a notable 63% revenue increase to $3.7 billion and a significant reduction in operational losses.
The fourth quarter of 2023 alone saw a 44% rise in revenue to $1.2 billion and a marked improvement in adjusted EBITDA, setting a positive trajectory for the company.
Looking ahead to 2024, DraftKings has revised its financial outlook, now anticipating its first full year of positive adjusted EBITDA, with earnings potentially reaching up to $510 million.
The company’s revenue forecast for 2024 ranges between $4.65 billion and $4.90 billion, indicating a bright future and solid growth prospects.