After the close on Monday, DraftKings (NASDAQ:DKNG) announced leadership changes, with chief financial officer (CFO) Jason Park moving into the role of chief transformation officer, effective May 1, 2024. As a result, Alan Ellingson, DraftKings' senior vice president of finance and analytics, will be elevated to CFO beginning the same day.
The newly created chief transformation officer role will see Park lead initiatives to deploy technologies to capture additional operating efficiencies as well as oversee the integration of the proposed acquisition of Jackpocket Inc.
Alan Ellingson joined DraftKings in 2020. DraftKings CEO Jason Robins said Ellingson "has extensive experience across our finance and analytics teams, and most importantly, deeply understands our core value drivers and focus on maximizing shareholder value."
Reacting to the management changes, analysts at JMP Securities said in a note Tuesday that the change "comes at an interesting time as the company now has the ability to shift its focus to shareholder returns."
"We believe the new chief transformation officer will leverage his private equity background from his time at Bain, and a business on the cusp of FCF inflection (JMP est. 2024E: $413M; 2025E FCF: $927M) to drive deeper into a more efficient operating structure to enhance profitability in the coming years," added JMP.
The firm, which maintained a Market Outperform rating and $52 price target on DKNG, also said Jackpocket represents a large opportunity across the business.