I listen to a lot of Chiefs podcasts, and every single one has multiple DraftKings commercials ever since sports betting became legal in Kansas. At the moment DK seems to be supporting the entire ecosystem.
They’re a publicly traded company now so you can go see their expenses on their financial statements.
Last year their operating loss was basically:
$2.2 billion of revenue LESS
$1.5B Cost Of Revenue
$1.2B Sales and Marketing
$0.3B Product and Technology
$0.8B General administrative
So they lost $1.5B on operations. Cost of revenue includes some of the things you’re talking about like product taxes and compliance costs. Cost of revenue also includes (if I am reading their financial statements correctly) an amortization expense of the large initial investment to start up Draft Kings, i.e. “developed technology, customer relationships, internally-developed software, gaming licenses, trademarks and tradenames and digital assets.” I think these factors explain why the Cost Of Revenue is their biggest offset to revenue - like a lot of companies, the large initial start up cost is both a cost and an intangible asset to the company at start up, and the cost is brought onto the balance sheet gradually over time through amortizations.
Anyway it seems like they are no where close to being profitable. Their revenue jumped 70% in 2022 over 2021 and it is still less than the amortized cost of their start up investment plus annual marketing fees. In fact Cost of Revenue grew faster than Revenue during this period of expansion, which is a bit alarming. I think that has something to do with your comment on needing to spend lots of extra money to enter new markets to get new revenue, and there’s also a basic business model issue in that they pay more payment processing fees as their volume of transactions grows with their business.
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Yep. They throw lots of money at podcasts, and they also have “Official Partnership” deals with multiple professional sports brands. Those deals aren’t cheap, and since they can’t operate everywhere, a sizeable chunk of the spend is targeting people who don’t have access to the site (or might only be able to use it a few times a year when traveling)
I took a look at their cash flow statement to compare to their operating loss, and I was surprised to see that they are paying out ~$600mm/yr in stock options, which seems crazy dilutive.
I feel like I’m missing something that’s very basic…
Can you withdraw contributions to a Roth (contributions, not earnings) anytime, tax free?
I think that’s right, the idea is that you can get your contributions back any time but investment earnings can only be withdraw tax free after 59 1/2 (because it is after all supposed to be a retirement account).
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Correct, since Roth contributions were after tax, those can be withdrawn at any time without penalty. However, if you want to withdraw earnings, you must be at least 59 1/2 AND have had the account for at least five years (both conditions must be met). So if you are gonna do a Roth, it’s a good idea to go ahead and start one young, even if you just throw a few bucks into it, so that you at least have met the 5-year requirement once you reach age 59 1/2 and need the money for whatever reason.
Thanks. I am merely a humble Canadian, I do not know all the details of the tax system in The Greatest Country In The World.
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Are withdrawals pro rata or is possible to take out all contributions before taking any earnings?
Afaik you can take out whatever you’ve put in just no gainz until those conditions are met
Not pro rata
Your custodian should track it and disperse it LIFO. So in theory, you’ll get 100% basis (contribution + conversions) before any gains.
That’s not how it works. The basis tracking is up to the tax payer.
I’m pretty sure Draft Kings spent a fuck ton of money in Florida to fuck up the Seminole Tribe’s gambling compact, but weren’t successful. I wouldn’t be surprised if they made similar bids in other states and failed, too.
Woops - you’re right.
Shameless
https://twitter.com/modestproposal1/status/1642572263571570688?s=46&t=XGja5BtSraUljl_WWUrIUg
lool seeking alpha SELL SELL SELL MORTIMER
https://seekingalpha.com/article/4592219-amc-sell-before-reverse-split
(up 23% today)
I did dump my modest holdings for a tiny profit though
I wonder what this court ruling means for them. Unless the rumor of a buyout by Amazon is true, AMC definitely needs to find a way to dilute. For max lulz I hope they copy BBBY and sell the dumping rights to Hudson Bay.
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Bye bye Tupperware?
The April 7 SEC filing statement from Tupperware execs isn’t doing shareholders any more favors.
“The Company has determined that a violation of its Credit Agreement covenants is probable to occur as a result of forecasted non-compliance with financial covenants and the Company’s delay in filing its Form 10-K, as well as cash constraints caused by higher interest costs and timing of re-engineering actions,” the statement warned. “Further, due to the challenging internal and external business economics causing volatility in the Company’s earnings, coupled with the increased levels and cost of borrowings under its Credit Agreement, the Company currently forecasts that it may not have adequate liquidity in the near term. The Company has therefore concluded that there is substantial doubt about its ability to continue as a going concern.”
I thought Amazon was going to buy amc. Was that just nonsense?