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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: Take a look at Draftking shares kind of up one percent.

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Speaker 2: It's been a choppy session after the company reported fourth

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Speaker 2: quarter results announcing that they would buy the lottery app

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Speaker 2: jack Pocket for seven hundred and fifty million dollars in

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Speaker 2: a cash and stock deal.

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Speaker 1: Delighted to say to walk us through the.

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Speaker 2: Numbers, CEO Jason Robbins, Actually where I want to start, Jason,

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Speaker 2: and good morning to you. There's a note out from

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Speaker 2: Morgan Stanley that says the results in the court are

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Speaker 2: gone were impacted by unfavorable sports results, and it just

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Speaker 2: goes back to the idea that that there's a marketplace

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Speaker 2: you operate.

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Speaker 1: What do you make of that, Well, I.

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Speaker 3: Think that you know, when you're taking action on sports,

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Speaker 3: then sometimes you're subject to those outcomes, and sometimes they

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Speaker 3: swing the better's way, and sometimes they swing the books.

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Speaker 3: Where this happened to be the worst two week stretch

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Speaker 3: of I should say, the most customer friendly two weeks

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Speaker 3: stretch of outcomes we've seen since becoming a public company.

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Speaker 3: And you know that happens over the course of time.

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Speaker 3: It certainly swings, you know, either way, and it evens

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Speaker 3: out but in a quarter, you know, you can get

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Speaker 3: bit and in this case, we had just issued guidance

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Speaker 3: and reaffirmed it in our investor day literally the week before,

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Speaker 3: and so you know sometimes that happens timing wise, But

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Speaker 3: if you adjust for that, the underlying fundamentals of the

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Speaker 3: business were incredibly strong. I mean, that was why we

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Speaker 3: were able to raise our guidance for this year by

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Speaker 3: so much. On the revenue side, we increased our adjusted

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Speaker 3: even the guidance by fifteen percent. That was really due

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Speaker 3: to a record customer acquisition quarter as well as really

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Speaker 3: strong engagement from our existing players.

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Speaker 2: So the M and A piece was really interesting, and

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Speaker 2: you know, I guess do you just see it as

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Speaker 2: a new market that you wanted to move into. What

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Speaker 2: was the motivation there?

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Speaker 3: Well, we did some analysis to directly compare our customer

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Speaker 3: base with theirs, and there was significant overlap. So we

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Speaker 3: feel good that it's an audience that really crosses over

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Speaker 3: and with actual CRM and real cross sell marketing, we

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Speaker 3: think we can increase that significantly.

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Speaker 1: The other thing we saw.

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Speaker 3: Was that the customers that overlapped actually spent more by

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Speaker 3: about fifty percent with DraftKings on average, and the customers

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Speaker 3: who did not overlap with Jackpockets audience. So not only

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Speaker 3: is there good crossover, it's also a higher value customer

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Speaker 3: that we can cross sell.

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Speaker 1: So there's a lot to like there.

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Speaker 3: And we think this really, you know, this is all

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Speaker 3: about CAC and LTV.

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Speaker 1: That's the nature of the business.

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Speaker 3: How do you get the customers on the platform as

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Speaker 3: efficiently as possible, and then how do you engage them

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Speaker 3: and keep them and get the highest LTVs over time

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Speaker 3: as possible. And so anything that helps on either side

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Speaker 3: of that equation, let alone both like this does I

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Speaker 3: think really will strengthen our ability to compete and win

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Speaker 3: in the US online gaming industry.

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Speaker 1: And so that's really what it's about.

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Speaker 3: That's our focus, and we feel like this is a

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Speaker 3: huge step forward for that.

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Speaker 4: Tell us about the equation that you have to decide

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Speaker 4: on whether to build or buy. Why buy in this occasion, Jason.

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Speaker 3: Well, the team that we got is incredible. Pete in

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Speaker 3: his team are really sharp and understand this market and

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Speaker 3: understand this customer better than anyone I've ever met. Also,

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Speaker 3: the technology they've built is hard. You know, it's not

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Speaker 3: easy to build a system that can scale to fulfill

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Speaker 3: in multi state and this type of setup, so really

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Speaker 3: that is tough. We looked at, you know, potentially different options,

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Speaker 3: and we felt like this team was the best, and

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Speaker 3: also the technology they built is the best, so well.

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Speaker 3: I certainly think there's always different ways to approach things,

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Speaker 3: and of course we think we got a good deal.

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Speaker 1: Too, that always part of it. But I think there's

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Speaker 1: always different ways to.

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Speaker 3: Approach things, and in this case, we felt like the

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Speaker 3: combination of the team we were getting and the technology

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Speaker 3: they've built was just too good to pass up.

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Speaker 4: Talking of different ways to approach things, and we are

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Speaker 4: indeed speaking with Jason Robbins, Draftking CEO to our TV

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Speaker 4: and radio audiences. What about this new sports streaming? What

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Speaker 4: about Disney getting into bed with Fox with Warner Brothers.

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Speaker 4: What do you make of it? Do you think you'll

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Speaker 4: get through the regulators?

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Speaker 1: Well, it'll be really interesting to see.

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Speaker 3: I mean, first of all, I'm not surprised that you're

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Speaker 3: seeing deals like that. Obviously, we've seen the media industry

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Speaker 3: get really disrupted by streaming, and sports has sort of

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Speaker 3: been that thing that everybody's kind of still waiting to see.

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Speaker 1: How does this evolve, how does this shake out?

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Speaker 3: And so You're going to continue to see more innovation,

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Speaker 3: more disruptive deals, and.

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Speaker 1: You know where it all shakes out. I don't know.

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Speaker 3: If I did, i'd be you know, I'd be making

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Speaker 3: more bets on those spaces than I am.

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Speaker 1: But it's not our world.

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Speaker 3: We're kind of watching and waiting to see and I think,

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Speaker 3: you know, usually in those situations, opportunities to partner with

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Speaker 3: new interesting ventures can emerge.

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Speaker 1: So we'll have to see how it all shakes out.

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Speaker 3: But certainly a fascinating time in the sports media space.

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Speaker 2: Jason, what's the next step in DraftKings technology story?

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Speaker 1: Now? What is it you want to do with the

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Speaker 1: platform and what do you want build? Well?

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Speaker 3: First, I think we still have a lot to do

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Speaker 3: to just continue to create an incredible product in OSB

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Speaker 3: and I gaming for our customers, Jack Pocket. Hopefully when

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Speaker 3: we close that that'll be something that there's a lot

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Speaker 3: of runway. They still have only launched Scratchers in one

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Speaker 3: or two states and a lot more to go there.

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Speaker 3: I think, so tons to do on the product side,

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Speaker 3: just to continue to build out and reach a wider

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Speaker 3: audience and also provide more interesting things for people to

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Speaker 3: engage in.

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Speaker 1: I think on the sports betting side.

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Speaker 3: Live betting and game betting continues to be a big

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Speaker 3: untapped opportunity. We're seeing it naturally increase, and that's without

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Speaker 3: I think a lot of the core piece of the ecosystem,

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Speaker 3: like broadcast latency totally figured out across sports, So a

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Speaker 3: lot of room i think still to grow in many

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Speaker 3: areas of the product, and we're going to continue focusing

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Speaker 3: on the customer, listening to what our customers say and

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Speaker 3: try and deliver a great experience for them.

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Speaker 4: Jason Robbins always great catching up with you. Thanks so much,