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Posted on: March 18, 2024, 05:34h.
Last updated on: March 18, 2024, 05:34h.
DraftKings (NASDAQ: DKNG) announced today that CFO Jason Park is moving to another role within the gaming company and that Senior Vice President of Finance and Analytics Alan Ellingson, will assume the top financial job at the firm on May 1.
Park joined Boston-based DraftKings as chief financial officer in June 2019, leading financial operations at the gaming company through the 2019 reverse merger with special purpose acquisition company (SPAC) Diamond Eagle Acquisition Corp. that paved the way for the sports betting giant to become a standalone publicly traded entity in April 2020.
Park was also instrumental and helping DraftKings turn the corner from money-loser to a profitable company known for consistently upping revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) forecasts.
During his tenure as Chief Financial Officer, DraftKings’ revenue grew from $323 million in 2019 to $3,665 million in 2023. The Company also produced positive Adjusted EBITDA in the second and fourth quarters of 2023 due in part to Mr. Park’s leadership of operational efficiency programs,” according to a statement issued by the gaming company.
During Park’s tenure, DraftKings stock has been turbulent, running from around $10 soon after the SPAC deal was announced to north of $74 in March 2021 before sliding below $10 at one point in May 2022. The shares of have since more than quadrupled and the stock’s overall performance with Park as CFO is impressive at a gain of 325% as of March 15.
Park’s New Role at DraftKings
In his new gig at DraftKings, Park will hold the title of chief transformation officer.
CEO and co-founder Jason Robins noted that in that role, Park will be responsible unlocking value tied to the operator’s recently announced acquisition of online lottery provider Jackpocket as well as addressing possible benefits for the gaming company in the world of artificial intelligence (AI).
“There are also potentially transformational AI applications on the horizon that could change the way businesses operate and serve their customers to create potential long-term advantages,” said Robins in the statement.
Park noted that more information on the transition will be provided on DraftKings’ next earnings conference call. Based on previous reporting patterns, it’s estimated the gaming company will deliver first-quarter results on May. 2.
Ellingson Resume
Ellingson has been with DraftKings since 2020 and has spent much of that time working closely with Park, indicating his promotion to CFO is practical and potentially seamless for the operator. Some of his previous duties included “building the forecasting capabilities that support the creation, tracking and ongoing refresh of the company’s multi-year financial objectives.”
“Alan has been with DraftKings for more than four years, has extensive experience across our finance and analytics teams, and most importantly, deeply understands our core value drivers and focus on maximizing shareholder value,” noted Robins in the press release.
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