DraftKings Inc. (NASDAQ:DKNG), a leader in digital sports entertainment and gaming, has announced the appointment of Erik Bradbury as its new Chief Accounting Officer, effective August 12, 2024. Bradbury brings over two decades of financial experience to the Boston-based company, including a previous tenure as DraftKings' Chief Accounting Officer from September 2020 to September 2023.
The announcement, made today, follows Bradbury's recent role as Senior Vice President, Controller & Chief Accounting Officer for IAC Inc., where he was responsible for the company's accounting and financial reporting since September 2023. His extensive background also includes a partnership at Ernst & Young LLP and a position as a Professional Accounting Fellow at Financial Executives International.
Bradbury's return to DraftKings is marked by the approval of a significant restricted stock unit award valued at $1,633,333, which will vest over four years, and a performance-based stock unit award worth $3,266,667, tied to the company's performance in 2025 and 2027.
Alan Ellingson, who has been serving as the interim principal accounting officer in addition to his role as Chief Financial Officer, will step down from the accounting officer role upon Bradbury's commencement.
DraftKings noted that this change in leadership is not due to any disagreements regarding accounting practices, operations, or policies. Furthermore, Bradbury has no material direct or indirect interest in any transactions requiring disclosure, nor is he related to any board members or executive officers at DraftKings.
The company's choice to reappoint Bradbury underscores its focus on maintaining robust financial leadership as it continues to grow and innovate in the competitive landscape of online sports betting and entertainment. This information is based on a press release statement.
In other recent news, DraftKings Inc. has been the focus of several recent developments. Despite the potential impact of Illinois' new tax structure on the gaming industry, Morgan Stanley (NYSE:MS) has maintained its Overweight rating and a $51.00 price target on DraftKings shares, reinforcing its position as their Top Pick in the North American Gaming & Lodging sector. The firm anticipates DraftKings will maintain its financial guidance, suggesting confidence in market growth and a balanced promotional environment.
Simultaneously, Susquehanna has maintained a Positive rating on DraftKings while lowering the shares target to $49 from $56, reflecting stronger than anticipated industry growth and the recent acquisition of JackPocket. The revised 2024 revenue and EBITDA projections stand at $5.03 billion and $485 million respectively.
Stifel also adjusted its price target for DraftKings shares to $50, a decrease from the previous $51, in response to recent legislative developments in Illinois. However, the firm believes the impact on DraftKings' future earnings estimates should be minimal. On the other hand, BMO (TSX:BMO) Capital maintained an Outperform rating and a stock price target of $54.00 for DraftKings, showing confidence in the company's long-term prospects despite potential challenges from new tax legislation in Illinois. These are among the recent developments for DraftKings.
InvestingPro Insights
As DraftKings Inc. (NASDAQ:DKNG) welcomes back Erik Bradbury into the fold as Chief Accounting Officer, the company's financial outlook appears optimistic according to InvestingPro metrics. With a market capitalization of $18.88 billion, DraftKings is recognized for its substantial revenue growth, which stood at an impressive 57.0% in the last twelve months as of Q1 2024. This growth trajectory is further bolstered by a quarterly revenue growth of 52.67% in Q1 2024, indicating robust business performance and potential for continued expansion.
InvestingPro Tips highlight that analysts are expecting an upturn in net income and sales growth for the current year, which aligns with the strategic financial leadership that Bradbury is poised to contribute. Moreover, with four analysts revising their earnings upwards for the upcoming period, there is an air of positive sentiment surrounding the company's profitability prospects.
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