NYSE:RSI

Rush Street Interactive Announces Fourth Quarter and Full Year 2022 Results

Published

2 years ago

March 2, 2023

– Fourth Quarter Revenue of $166 Million, up 27% Year-over-Year –
– Full Year 2022 Revenue of $592 Million, up 21% Year-over-Year –
– Initiating Full Year 2023 Revenue Guidance of between $630 and $700 Million –
– Expect to Achieve Positive Adjusted EBITDA for the Second Half of 2023 –

CHICAGO, March 01, 2023 (GLOBE NEWSWIRE) — Rush Street Interactive, Inc. (NYSE: RSI) (“RSI”), a leading online casino and sports betting company in the United States and the rest of the Americas, today announced financial results for the fourth quarter and full year ended December 31, 2022.

Fourth Quarter 2022 Financial Highlights

Revenue was $165.5 million during the fourth quarter of 2022, an increase of 27%, compared to $130.6 million during the fourth quarter of 2021.
Net loss was $31.1 million during the fourth quarter of 2022, compared to a net loss of $38.1 million during the fourth quarter of 2021.
Adjusted EBITDA¹ was a loss of $17.3 million during the fourth quarter of 2022, compared to an Adjusted EBITDA loss of $31.2 million during the fourth quarter of 2021.
Adjusted advertising and promotions expense¹ was $63.2 million during the fourth quarter of 2022, compared to $64.0 million during the fourth quarter of 2021.
Real-Money Monthly Active Users (“MAUs”) in the United States and Canada for the fourth quarter of 2022 were up 22% year-over-year with average revenue per MAU (“ARPMAU”) of $327 during the fourth quarter of 2022.
As of December 31, 2022, RSI had $180 million of unrestricted cash and cash equivalents.

Full Year 2022 Financial Highlights

Revenue was $592.2 million during full year 2022, an increase of 21%, compared to $488.1 million during full year 2021.
Net loss was $134.3 million during full year 2022, compared to a net loss of $71.1 million during full year 2021.
Adjusted EBITDA¹ was a loss of $91.8 million during full year 2022, compared to $65.1 million during full year 2021.
Adjusted advertising and promotions expense¹ was $218.4 million during the full year 2022, compared to $186.9 million during the full year of 2021.
MAUs in the United States and Canada for the full year 2022 were up 29% year-over-year with ARPMAU of $315 during the year, down 9% year-over-year.

_________________________
¹ This is a non-GAAP financial measure. Please see “Non-GAAP Financial Measures” for more information about this non-GAAP financial measure and “Reconciliations of GAAP to Non-GAAP Financial Measures” for a reconciliation of the most comparable measure calculated in accordance with GAAP to this non-GAAP financial measure.

Richard Schwartz, Chief Executive Officer of RSI, said, “We are proud to report another strong quarter and record results for the year, spurred by 95% annual growth in our Latin American and new North American markets launched after 2020. We expect to achieve positive Adjusted EBITDA for the second half of 2023 and continue to be selective as we prioritize investments in markets with higher returns.”

“Looking forward, we will continue to focus on earning and retaining customer loyalty, by treating them well, being thoughtful, developing seamless experiences and reducing friction at every possible point. We have built our proprietary platform and culture around a disciplined operating philosophy, which is reflected in our results.”

European Gaming Congress 2024 (Warsaw, Poland)

Guidance

RSI is initiating revenue guidance for the full year 2023. It expects revenues for the full year ending December 31, 2023 to be between $630 and $700 million. At the midpoint of the range, revenue of $665 million represents 12% year-over-year growth when compared to $592 million of revenues for 2022.

This range is based on certain assumptions, including that (i) only operations in live jurisdictions as of today’s date are included, (ii) all professional and college sports calendars that have been announced come to fruition, including the completion of their 2023 seasons, and (iii) RSI continues to operate in markets in which it is live today.

Recent Business Highlights

BetRivers went live with online and mobile sportsbook wagering in Maryland in November and in Ohio on New Year’s Day 2023.
Enhanced technology platform to further personalize casino experiences by player segmentations
Successful launch of a fully integrated and innovative squares game in our sportsbook.
Expanded Latin American presence, opening two new state-of-the-art offices in Colombia in advance of additional growth opportunities ahead.
Continued as an industry leader in responsible gaming achieving the distinction as the first U.S.-based online gaming and betting company to receive accreditations under the Responsible Gambling Council’s RG Check.

Earnings Conference Call and Webcast Details

RSI will host a conference call and audio webcast today at 5:00 p.m. Eastern Time (4:00 p.m. Central Time), during which management will discuss fourth quarter and full year results and provide commentary on business performance and its current outlook for 2023. A question-and-answer session will follow the prepared remarks.

The conference call may be accessed by dialing 1-844-200-6205 for domestic callers or 1-929-526-1599 for international callers. The conference call access code is 885159.

A live audio webcast of the earnings conference call may be accessed on RSI’s website at ir.rushstreetinteractive.com, along with a copy of this press release and an investor slide presentation. The audio webcast and investor slide presentation will be available on RSI’s investor relations website until at least April 1, 2023.

About Rush Street Interactive

RSI is a trusted online gaming and sports entertainment company focused on markets in the United States, Canada and Latin America. Through its brands, BetRivers, PlaySugarHouse and RushBet, RSI was an early entrant in many regulated jurisdictions. It currently offers real-money mobile and online operations in fifteen U.S. states: Pennsylvania, Illinois, New Jersey, New York, Ohio, Connecticut, Michigan, Indiana, Virginia, Colorado, Maryland, Iowa, West Virginia, Arizona and Louisiana, as well as in the regulated international markets of Ontario, Canada, Colombia and Mexico. RSI offers, through its proprietary online gaming platform, some of the most popular online casino games and sports betting options in the United States. Founded in 2012 in Chicago by gaming industry veterans, RSI was named the 2022 EGR North America Awards Operator of the Year, Customer Services Operator of the Year and Social Gaming Operator of the Year, and the 2021 SBC Latinoamérica Awards Sportsbook Operator of the Year. RSI was the first U.S.-based online casino and sports betting operator to receive RG Check iGaming Accreditation from the Responsible Gaming Council. For more information, visit www.rushstreetinteractive.com.

Non-GAAP Financial Measures

In addition to providing financial measurements based on accounting principles generally accepted in the United States (“GAAP”), this press release includes certain financial measures that are not prepared in accordance with GAAP, including Adjusted EBITDA, Adjusted Operating Costs and Expenses, Adjusted Net Loss Per Share, Adjusted Net Loss and Adjusted Weighted Average Common Shares Outstanding, each of which is a non-GAAP performance measure that RSI uses to supplement its results presented in accordance with GAAP. A reconciliation of each such non-GAAP financial measure to the most directly comparable GAAP financial measure can be found below. RSI believes that presentation of these non-GAAP financial measures provides useful information to investors regarding RSI’s results of operations and operating performance, as they are similar to measures reported by its public competitors and are regularly used by securities analysts, institutional investors and other interested parties in analyzing operating performance and prospects. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for any GAAP financial measures and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.

RSI defines Adjusted EBITDA as net income (loss) before interest, income taxes, depreciation and amortization, share-based compensation, adjustments for certain one-time or non-recurring items and other adjustments. Adjusted EBITDA excludes certain expenses that are required in accordance with GAAP because certain expenses are either non-cash (i.e., depreciation and amortization, and share-based compensation) or are not related to our underlying business performance (i.e., interest income or expense).

RSI defines Adjusted Operating Costs and Expenses as RSI’s GAAP operating costs and expenses adjusted to exclude the impacts of share-based compensation, certain one-time or non-recurring items and other adjustments. Adjusted Operating Costs and Expenses excludes certain expenses that are required in accordance with GAAP because certain expenses are either non-cash (i.e., share-based compensation) or are not related to our underlying business performance.

RSI defines Adjusted Net Loss Per Share as Adjusted Net Loss divided by Adjusted Weighted Average Common Shares Outstanding. Adjusted Net Loss is defined as net loss attributable to Rush Street Interactive, Inc. as used in the diluted net loss per share calculation, adjusted for the reallocation of net loss attributable to non-controlling interests, share-based compensation, certain one-time or non-recurring items and other adjustments. Adjusted Weighted Average Common Shares Outstanding is defined as the weighted average number of common shares outstanding as used in the diluted net loss per share calculation, adjusted for the assumed conversion of the non-controlling interest’s Rush Street Interactive, LP Class A units to Class A common stock of RSI on a one-to-one-basis.

RSI includes these non-GAAP financial measures because management uses them to evaluate RSI’s core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. Management believes that these non-GAAP financial measures provide investors with useful information on RSI’s past financial and operating performance, enable comparison of financial results from period-to-period where certain items may vary independent of business performance, and allow for greater transparency with respect to metrics used by RSI’s management in operating our business. Management also believes these non-GAAP financial measures are useful in evaluating our operating performance compared to that of other companies in our industry, as these metrics generally eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance.

Key Metrics

RSI provides certain key metrics, including MAUs and ARPMAU, in this press release. RSI defines MAUs as the number of unique users per month who have placed at least one real-money bet across one or more of our online casino or online sports betting offerings, and it defines ARPMAU as average revenue for the applicable period divided by the average MAUs for the same period.

The numbers RSI uses to calculate MAUs and ARPMAU are based on internal RSI data. While these numbers are based on what RSI believes to be reasonable judgments and estimates of its customer base for the applicable period of measurement, there are inherent challenges in measuring usage and engagement with respect to RSI’s online offerings across its customer base. Such challenges and limitations may also affect RSI’s understanding of certain details of its business. In addition, RSI’s key metrics and related estimates, including the definitions and calculations of the same, may differ from estimates published by third parties or from similarly-titled metrics of its competitors due to differences in operations, offerings, methodology and access to information. RSI regularly reviews, and may adjust its processes for calculating, its internal metrics to improve their accuracy.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. RSI’s actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, statements regarding guidance, RSI’s future results of operations, financial condition or profitability, currency fluctuations, RSI’s strategic plans and focus, anticipated launches of RSI’s current or new offerings in existing or future jurisdictions, player growth and engagement, product initiatives and the objectives of management for future operations. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside RSI’s control and are difficult to predict. Factors that may cause such differences include, without limitation: changes in applicable laws or regulations; RSI’s ability to manage and sustain growth; RSI’s ability to execute its business plan, meet its projections and obtain relevant market access and/or gaming licenses; unanticipated product or service delays; general economic and market conditions impacting the demand for RSI’s products and services; economic and market conditions in the gaming, entertainment and leisure industry in the markets in which RSI operates; the potential adverse effects of COVID-19 on capital markets, general economic conditions, inflation rates, unemployment and RSI’s liquidity, operations and personnel; and other risks and uncertainties indicated from time to time in RSI’s filings with the SEC. RSI cautions that the foregoing list of factors is not exclusive. RSI cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. RSI does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

Media Contacts:
Lisa Johnson
(609) 788-8548
[email protected]

Investor Contact:
[email protected]

Rush Street Interactive, Inc.
Consolidated Condensed Statements of Operations
(Unaudited and in thousands, except per share data)

	Three Months Ended December 31,						Twelve months ended December 31,
	2022			2021			2022			2021
Revenue	$	165,534		$	130,565		$	592,212		$	488,105

Operating costs and expenses
Costs of revenue		106,603			86,477			414,664			332,145
Advertising and promotions		63,666			64,640			220,460			190,476
General administration and other		19,371			14,868			67,561			55,518
Depreciation and amortization		4,259			1,650			14,325			4,245
Total operating costs and expenses		193,899			167,635			717,010			582,384
Loss from operations		(28,365	)		(37,070	)		(124,798	)		(94,279	)

Other income (expenses)
Interest income (expense), net		91			(146	)		(573	)		(187	)
Change in fair value of warrant liabilities		—			—			—			41,802
Change in fair value of earnout interests liability		—			—			—			(13,740	)
Total other income (expense)		91			(146	)		(573	)		27,875
Loss before income taxes		(28,274	)		(37,216	)		(125,371	)		(66,404	)

Income tax expense		2,785			907			8,961			4,688
Net loss		(31,059	)		(38,123	)		(134,332	)		(71,092	)

Net loss attributable to non-controlling interests		(22,070	)		(27,718	)		(95,701	)		(51,603	)
Net loss attributable to Rush Street Interactive, Inc.	$	(8,989	)	$	(10,405	)	$	(38,631	)	$	(19,489	)

Net loss per common share attributable to Rush Street Interactive, Inc. – basic	$	(0.14	)	$	(0.17	)	$	(0.61	)	$	(0.35	)
Weighted average common shares outstanding – basic		64,272,722			59,581,075			63,532,906			56,265,541

Net loss per common share attributable to Rush Street Interactive, Inc. – diluted	$	(0.14	)	$	(0.17	)	$	(0.61	)	$	(0.51	)
Weighted average common shares outstanding – diluted		64,272,722			59,581,075			63,532,906			57,426,885

Rush Street Interactive, Inc.
Consolidated Statements of Comprehensive Loss
(Unaudited and in thousands)

	Three Months Ended December 31,						Twelve months ended December 31,
	2022			2021			2022			2021
Net loss	$	(31,059	)	$	(38,123	)	$	(134,332	)	$	(71,092	)

Other comprehensive loss
Foreign currency translation adjustment		(2,109	)		(1,051	)		(3,886	)		(2,111	)
Comprehensive loss		(33,168	)		(39,174	)		(138,218	)		(73,203	)

Comprehensive loss attributable to non-controlling interests		(23,564	)		(28,483	)		(98,441	)		(53,168	)
Comprehensive loss attributable to Rush Street Interactive, Inc.	$	(9,604	)	$	(10,691	)	$	(39,777	)	$	(20,035	)

Rush Street Interactive, Inc.
Reconciliations of GAAP to Non-GAAP Financial Measures
(Unaudited and in thousands)

Adjusted EBITDA:

	Three Months Ended December 31,						Twelve months ended December 31,
	2022			2021			2022			2021
Net loss	$	(31,059	)	$	(38,123	)	$	(134,332	)	$	(71,092	)

Interest (income) expense, net		(91	)		146			573			187
Income tax expense		2,785			907			8,961			4,688
Depreciation and amortization		4,259			1,650			14,325			4,245
Change in fair value of warrant liability		—			—			—			(41,802	)
Change in fair value of earnout interests liability		—			—			—			13,740
Share-based compensation expense		6,790			4,207			18,691			24,912
Adjusted EBITDA	$	(17,316	)	$	(31,213	)	$	(91,782	)	$	(65,122	)

Adjusted Operating Costs and Expenses:

	Three Months Ended December 31,						Twelve months ended December 31,
	2022			2021			2022			2021
GAAP operating costs and expenses:
Costs of revenue	$	106,603		$	86,477		$	414,664		$	332,145
Advertising and promotions		63,666			64,640			220,460			190,476
General administration and other		19,371			14,868			67,561			55,518
Depreciation and amortization		4,259			1,650			14,325			4,245
Total GAAP operating costs and expenses	$	193,899		$	167,635		$	717,010		$	582,384

Non-GAAP operating cost and expense adjustments:
Costs of revenue¹	$	(248	)	$	(297	)	$	(987	)	$	(1,808	)
Advertising and promotions¹		(516	)		(634	)		(2,048	)		(3,605	)
General administration and other¹		(6,026	)		(3,276	)		(15,656	)		(19,499	)
Depreciation and amortization		—			—			—			—
Total non-GAAP operating cost and expense adjustments	$	(6,790	)	$	(4,207	)	$	(18,691	)	$	(24,912	)

Adjusted operating costs and expenses:
Costs of revenue	$	106,355		$	86,180		$	413,677		$	330,337
Advertising and promotions		63,150			64,006			218,412			186,871
General administration and other		13,345			11,592			51,905			36,019
Depreciation and amortization		4,259			1,650			14,325			4,245
Total adjusted operating costs and expenses	$	187,109		$	163,428		$	698,319		$	557,472

Non-GAAP operating cost and expense adjustments for the three-and-twelve months ended December 31, 2022 and 2021 include Share-based compensation expense.

Rush Street Interactive, Inc.
Reconciliations of GAAP to Non-GAAP Financial Measures
(Unaudited and in thousands, except share and per share data)

Adjusted Net Loss, Adjusted Weighted Average Common Shares Outstanding and Adjusted Net Loss Per Share:

	Three months ended December 31,						Twelve months ended December 31,
	2022			2021			2022			2021
Adjusted Net Loss
Net loss attributable to Rush Street Interactive, Inc. – diluted¹	$	(8,989	)	$	(10,405	)	$	(38,631	)	$	(29,058	)
Adjustments:
Net loss attributable to non-controlling interests		(22,070	)		(27,718	)		(95,701	)		(51,603	)
Change in fair value of warrant liabilities attributable to non-controlling interests		—			—			—			(32,233	)
Change in fair value of earnout interests liability		—			—			—			13,740
Share-based compensation expense		6,790			4,207			18,691			24,912
Adjusted Net Loss	$	(24,269	)	$	(33,916	)	$	(115,641	)	$	(74,242	)

Adjusted Weighted Average Common Shares Outstanding
Weighted average common shares outstanding – diluted²		64,272,722			59,581,075			63,532,906			57,426,885
Adjustments:
Conversion of weighted average RSILP units to Class A Common Shares		156,255,867			159,657,590			156,660,156			159,335,977
Adjusted Weighted Average Common Shares Outstanding		220,528,589			219,238,665			220,193,062			216,762,862

Net loss per common share attributable to Rush Street Interactive, Inc. – diluted	$	(0.14	)	$	(0.17	)	$	(0.61	)	$	(0.51	)
Adjusted Net Loss per Share	$	(0.11	)	$	(0.15	)	$	(0.53	)	$	(0.34	)

Net loss attributable to Rush Street Interactive, Inc. – diluted for the twelve months ended December 31, 2021, includes the Net loss attributable to Rush Street Interactive, Inc. adjusted for the dilutive effect of previously outstanding warrants that were redeemed in March 2021 (i.e., the portion of the change in fair value of warrants attributed to Rush Street Interactive Inc.). There was no dilutive effect for the three months ended December 31, 2021 or the three-and-twelve months ended December 31, 2022.
Weighted average common shares outstanding – diluted for the twelve months ended December 31, 2021, includes the basic number of weighted average common shares outstanding, adjusted for the dilutive effect of previously outstanding warrants that were redeemed in March 2021 using the Treasury Stock Method. There was no dilutive effect for the three months ended December 31, 2021 or the three-and-twelve months ended December 31, 2022.

NYSE:RSI

Rush Street Interactive Named Casino Operator of the Year at 2024 SBC Latinoamérica Awards

Published

2 weeks ago

November 4, 2024

GlobeNewswire

rush-street-interactive-named-casino-operator-of-the-year-at-2024-sbc-latinoamerica-awards

CHICAGO, Nov. 04, 2024 (GLOBE NEWSWIRE) — Rush Street Interactive, Inc. (NYSE: RSI) (“RSI”), a leading online gaming and sportsbook operator, is proud to announce that it has been named Casino Operator of the Year at the prestigious SBC Latinoamérica Awards 2024. This accolade highlights RSI’s exceptional growth and commercial success in the Latin American market.

“We are honored to receive the SBC’s Latinoamérica’s Casino Operator of the Year award,” said Richard Schwartz, CEO of RSI. “This recognition is a testament to our strategic focus on expanding our presence in Latin America and delivering a superior gaming experience to our players. Our commitment to innovation, customer satisfaction, and responsible gaming continues to drive our success in this dynamic market. RSI has significantly expanded its footprint in Latin America, launching operations in new markets and strengthening its position as a top-tier operator. We have introduced a range of innovative gaming products and services tailored to the preferences of Latin American players.”

Rush Street Interactive Named Casino Operator of the Year at 2024 SBC Latinoamérica Awards

The company’s dedication to providing exceptional customer service and a seamless gaming experience has been a key driver of its success. The SBC Latinoamérica Awards are renowned for recognizing excellence and innovation in the gaming industry. This award underscores RSI’s leadership and commitment to delivering value to its shareholders and customers alike.

About Rush Street Interactive

RSI is a trusted online gaming and sports entertainment company focused on markets in the United States, Canada and Latin America. Through its brands, BetRivers, PlaySugarHouse and RushBet, RSI was an early entrant in many regulated jurisdictions. It currently offers real-money mobile and online operations in fifteen U.S. states: New Jersey, Pennsylvania, Indiana, Colorado, Illinois, Iowa, Michigan, Virginia, West Virginia, Arizona, New York, Louisiana, Maryland, Ohio and Delaware, as well as in the regulated international markets of Colombia, Ontario (Canada), Mexico and Peru. RSI offers, through its proprietary online gaming platform, some of the most popular online casino games and sports betting options in the United States. Founded in 2012 in Chicago by gaming industry veterans, RSI was named the EGR North America Awards Customer Services Operator of the Year five years in a row (2020-2024), the 2022 EGR North America Awards Operator of the Year and Social Gaming Operator of the Year, and the 2021 SBC Latinoamérica Awards Sportsbook Operator of the Year. RSI was the first U.S.-based online casino and sports betting operator to receive RG Check iGaming Accreditation from the Responsible Gaming Council. For more information, visit www.rushstreetinteractive.com.

Media Contacts:
Lisa Johnson
[email protected]

Investor Contact:
[email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/1bd74ebc-3ec1-4490-a54c-04492f5397e4.

NYSE:RSI

Rush Street Interactive Premieres Its New Online Poker Platform in Pennsylvania, Developed in Partnership with Well-Respected Poker Pro Phil Galfond

Published

2 weeks ago

October 31, 2024

GlobeNewswire

BetRivers Collaborates with Rivers Casino Poker Rooms to Connect Online and Live Poker Experiences

CHICAGO, Oct. 31, 2024 (GLOBE NEWSWIRE) — Rush Street Interactive, Inc. (NYSE: RSI) (“RSI”), a leading online casino and sports betting company in the United States and the rest of the Americas, today announced the official launch of its highly anticipated proprietary online poker platform, in close partnership with Phil Galfond, a widely respected figure in the poker community. This ground-breaking launch marks a significant milestone in RSI’s broader poker strategy, offering a unique player-first experience designed by poker players, for poker players.

Designed by Poker Players for Poker Players

The BetRivers Poker platform was crafted through continuous real-time feedback from those who know the game best, including the experienced senior leadership team, many of whom are former professional poker players themselves. Their hands-on involvement has ensured that every feature, from game variety to reward systems, serves the poker community authentically.

A key differentiator of the BetRivers Poker platform is the deep involvement of Phil Galfond—not just as an ambassador, but as a vital partner in its design and development. As a professional poker player and industry innovator, Galfond brings invaluable insight into the game, ensuring the platform is finely tuned to meet the needs of poker players at every level.

“As poker players, we designed this platform from the ground up to be for the players – all players. From the amateur playing their very first hand to the sophisticated pro, everyone was kept in mind as we focused on fairness, excitement, and generous rewards that truly benefit the player,” said Phil Galfond. “I’ve been heavily involved in the game design, promotions, and policy decisions, and, more importantly, in building an incredible team that sees online poker the way I do.”

Innovative Features and Game Variety

BetRivers Poker offers a comprehensive suite of game formats, including cash games, Sit & Go tournaments, and Multi-Table Tournaments (MTTs), catering to players of all skill levels. The platform also introduces unique features like Dynamic Avatars, which provide players with real-time insights into their opponents’ play styles. These avatars dynamically adjust their expressions based on the opponent’s behavior, offering an intuitive and engaging way to read the competition. Additionally, the Cub3d Sit and Go Tournaments (SNGs) allow players to win up to 1500x their buy-in in minutes.

Expanding the Reach to Omnichannel Poker with Rivers Casinos

RSI’s collaboration with the renowned poker rooms at Rivers Casinos in Pittsburgh and Philadelphia enhances the poker experience for retail players, offering additional rewards and promotions that connect online and in-person play. Retail players can enjoy integrated rewards and seamless transitions between digital and live poker environments, making it easier to engage and play across both platforms. This omnichannel approach adds value for Rivers Casino’s poker community while offering all players the benefits of playing both online and live.

“We are incredibly excited about the launch of this platform. Our goal is to create a seamless experience for players, bridging the gap between the BetRivers digital and Rivers Casino offerings,” said Richard Schwartz, Chief Executive Officer of Rush Street Interactive. “By aligning with Rush Street Gaming’s strong retail presence, we are able to leverage our combined strengths to offer a truly unique poker experience that benefits players and drives growth across our entire portfolio.”

Tim Drehkoff, Chief Executive Officer of Rush Street Gaming, added, “This launch reinforces our commitment to offering Rivers Casino’s guests a wide variety of gaming options. By integrating online and in-person poker, we’re not only enhancing the player experience, but also providing a seamless loyalty and rewards program. We’re committed to continuing to innovate and provide value to our players.”

Low Rake & iRush Rewards Program

BetRivers Poker will offer among the lowest rake in Pennsylvania, giving players more value with every hand. Players also benefit from poker’s integration into the award-winning BetRivers iRush Rewards program, where they can earn and redeem points across both digital and retail properties. This cross-vertical integration highlights RSI’s dedication to delivering value across all gaming verticals, including online casino and sportsbook, with poker expected to drive a substantial overall revenue uplift.

Collaboration with Poker Night in America TV Series

BetRivers Poker’s reach will be expanded through its association with the well-known Poker Night in America (PNIA) series, owned by RSI. BetRivers Poker will appear across PNIA’s platforms, including social media, streaming, and its TV show, with plans to increase its presence over time. This exposure will help introduce BetRivers Poker to a broader audience of poker enthusiasts, leveraging PNIA’s established reach and influence in the poker community.

The Future of BetRivers Poker

The BetRivers online poker platform will initially launch in Pennsylvania, with plans to expand into additional jurisdictions as part of RSI’s long-term strategy. With its innovative features, strong partnerships, and a commitment to putting the player first, BetRivers is set to become the premier destination for online poker.

About Rush Street Interactive

RSI is a trusted online gaming and sports entertainment company focused on markets in the United States, Canada and Latin America. Through its brands, BetRivers, PlaySugarHouse and RushBet, RSI was an early entrant in many regulated jurisdictions. It currently offers real-money mobile and online operations in fifteen U.S. states: New Jersey, Pennsylvania, Indiana, Colorado, Illinois, Iowa, Michigan, Virginia, West Virginia, Arizona, New York, Louisiana, Maryland, Ohio and Delaware, and, as well as in the regulated international markets of Colombia, Ontario (Canada), Mexico and Peru. RSI offers, through its proprietary online gaming platform, some of the most popular online casino games and sports betting options in the United States. Founded in 2012 in Chicago by gaming industry veterans, RSI was named the EGR North America Awards Customer Services Operator of the Year five years in a row (2020-2024), the 2022 EGR North America Awards Operator of the Year and Social Gaming Operator of the Year, and the 2021 SBC Latinoamérica Awards Sportsbook Operator of the Year. RSI was the first U.S.-based online casino and sports betting operator to receive RG Check iGaming Accreditation from the Responsible Gaming Council. For more information, visit www.rushstreetinteractive.com.

About Rush Street Gaming

Rush Street Gaming and its affiliates have developed and operate Rivers Casino in Pittsburgh, Pennsylvania; Philadelphia, Pennsylvania; Des Plaines, Illinois (Chicago area); Schenectady, New York; and Portsmouth, Virginia. By placing an emphasis on superior design and outstanding customer service, Rush Street Gaming has become one of the leading casino developers in the United States. Rush Street’s casinos employ approximately 6,000 Team Members and generate more than $1.5 billion in annual gaming revenue. All Rush Street Gaming casinos have been voted a “Best Place to Work” or “Top Workplace” by their Team Members. For more information, visit RushStreetGaming.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. RSI’s actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, RSI’s expectations about its launch of online poker, the anticipated scope, benefits, results of online poker and future expansion, as well as RSI’s relative rake levels compared to competitors. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside RSI’s control and are difficult to predict. Factors that may cause such differences include, without limitation, changes in applicable laws or regulations, unanticipated product or service delays, and other risks and uncertainties indicated from time to time in RSI’s most recent Annual Report on Form 10-K, including those under “Risk Factors” therein, and in RSI’s other filings with the SEC. RSI cautions that the foregoing list of factors is not exclusive. RSI cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. RSI does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

Contacts

Media:
[email protected]

Investors:
[email protected]

NYSE:RSI

Rush Street Interactive Announces Third Quarter 2024 Results and Raises Full Year Guidance

Published

2 weeks ago

October 30, 2024

GlobeNewswire

– Third Quarter Revenue of $232 Million, up 37% Year-over-Year –
– Third Quarter Net Income of $3.2 Million –
– Strong Momentum Continues with Third Quarter Adjusted EBITDA of $23 Million –
– Raising Full Year 2024 Adjusted EBITDA Guidance 24% at the Midpoint with a Revised Range
of Between $82 and $86 Million –
– Announces Share Repurchase Authorization of $50 Million –

CHICAGO, Oct. 30, 2024 (GLOBE NEWSWIRE) — Rush Street Interactive, Inc. (NYSE: RSI) (“RSI”), a leading online casino and sports betting company in the United States and the rest of the Americas, today announced financial results for the third quarter ended September 30, 2024.

Third Quarter 2024 and Recent Highlights

Revenue was $232.1 million during the third quarter of 2024, an increase of 37%, compared to $169.9 million during the third quarter of 2023.
Net income during the third quarter of 2024 was $3.2 million, compared to a net loss of $13.4 million during the third quarter of 2023.
Adjusted EBITDA¹ was $23.4 million during the third quarter of 2024, compared to $4.1 million during the third quarter of 2023.
Adjusted advertising and promotions expense¹ was $38.6 million during the third quarter of 2024, an increase of 13% compared to $34.1 million during the third quarter of 2023.
Monthly Active Users (“MAU”) in the United States and Canada were approximately 168,000, up 28% year-over-year. MAUs in Latin America (which includes Mexico) were approximately 329,000, up 122% year-over-year.
Average Revenue per Monthly Active User (“ARPMAU”) in the United States and Canada was $388 during the third quarter of 2024, up 4% year-over-year. ARPMAU in Latin America was $39, compared to $43 last year.
As of September 30, 2024, unrestricted cash and cash equivalents increased to $216 million from $194 million as of June 30, 2024.
On October 24, 2024, RSI’s Board of Directors authorized the repurchase of an aggregate of up to $50 million of RSI’s Class A common stock.²

Richard Schwartz, Chief Executive Officer of RSI, said, “We are excited to report that we have achieved another quarter of exceptional performance, setting new quarterly records in both revenue and adjusted EBITDA. Our third quarter revenue surged by 37% year-over-year, and our adjusted EBITDA increased more than fivefold from the same period last year. These record results highlight the effectiveness of our strategic initiatives and ability to execute. Our focus on innovation to attract and retain high-value players continues to drive significant growth and profitability.”

“Our strategy has yielded broad based growth and success across all of our geographies and products. We’ve accelerated player growth for another consecutive quarter, acquired significantly more players with much greater marketing efficiency, all the while increasing our player values. This combination sets us up well for continued strong performance.”

“In addition to these strong results, we are pleased to announce a share repurchase authorization of up to $50 million. This move reflects our confidence in the company’s future and our commitment to enhancing shareholder value. Our cash generation and strong balance sheet provides us with the option to make this strategic investment. We remain on a clear path to becoming a leader in online gaming across the Americas, and are dedicated to delivering exceptional value to our customers and shareholders.”

Guidance

RSI expects revenue for the full year ending December 31, 2024 to be between $900 and $920 million, increasing the midpoint by $30 million compared to the prior guidance. At the midpoint of the range, revenue of $910 million represents 32% year-over-year growth when compared to $691 million of revenue for 2023.

RSI expects Adjusted EBITDA¹ for the full year ending December 31, 2024 to be between $82 and $86 million, increasing the midpoint by $16 million compared to the prior guidance. At the midpoint of the range, Adjusted EBITDA of $84 million compares to $8.2 million of Adjusted EBITDA for 2023.

These guidance ranges are based on certain assumptions, including that (i) only operations in live jurisdictions as of today’s date are included, and (ii) RSI continues to operate in markets in which it is live today.

Earnings Conference Call and Webcast Details
RSI will host a conference call and audio webcast today at 6:00 p.m. Eastern Time (5:00 p.m. Central Time), during which management will discuss third quarter results and provide commentary on business performance and its current outlook for 2024. A question-and-answer session will follow the prepared remarks.

The conference call may be accessed by dialing 1-833-470-1428 (Toll Free) or 1-404-975-4839 (Local) or, for international callers, 1-929-526-1599. The conference call access code is 550436.

About Rush Street Interactive
RSI is a trusted online gaming and sports entertainment company focused on markets in the United States, Canada and Latin America. Through its brands, BetRivers, PlaySugarHouse and RushBet, RSI was an early entrant in many regulated jurisdictions. It currently offers real-money mobile and online operations in fifteen U.S. states: New Jersey, Pennsylvania, Indiana, Colorado, Illinois, Iowa, Michigan, Virginia, West Virginia, Arizona, New York, Louisiana, Maryland, Ohio and Delaware, as well as in the regulated international markets of Colombia, Ontario (Canada), Mexico and Peru. RSI offers, through its proprietary online gaming platform, some of the most popular online casino games and sports betting options in the United States. Founded in 2012 in Chicago by gaming industry veterans, RSI was named the EGR North America Awards Customer Services Operator of the Year five years in a row (2020-2024), the 2022 EGR North America Awards Operator of the Year and Social Gaming Operator of the Year, and the 2021 SBC Latinoamérica Awards Sportsbook Operator of the Year. RSI was the first U.S.-based online casino and sports betting operator to receive RG Check iGaming Accreditation from the Responsible Gaming Council. For more information, visit www.rushstreetinteractive.com.

Non-GAAP Financial Measures
In addition to providing financial measurements based on accounting principles generally accepted in the United States (“GAAP”), this press release includes certain financial measures that are not prepared in accordance with GAAP, including Adjusted EBITDA, Adjusted Operating Costs and Expenses, Adjusted Earnings (Loss) Per Share, Adjusted Net Income (Loss) and Adjusted Weighted Average Common Shares Outstanding, each of which is a non-GAAP performance measure that RSI uses to supplement its results presented in accordance with GAAP. A reconciliation of each such non-GAAP financial measure to the most directly comparable GAAP financial measure can be found below. RSI believes that presentation of these non-GAAP financial measures provides useful information to investors regarding RSI’s results of operations and operating performance, as they are similar to measures reported by its public competitors and are regularly used by securities analysts, institutional investors and other interested parties in analyzing operating performance and prospects. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for any GAAP financial measures and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.

By providing full year 2024 Adjusted EBITDA guidance, RSI provided its expectation of a forward-looking non-GAAP financial measure. Information reconciling full year 2024 Adjusted EBITDA to its most directly comparable GAAP financial measure, net income (loss), is unavailable to RSI without unreasonable effort due to, among other things, the inherent difficulty in forecasting and quantifying the comparable GAAP measure and the applicable adjustments and other amounts that would be necessary for such a reconciliation, and certain of these amounts are outside of RSI’s control and may be subject to high variability or complexity. Preparation of such reconciliations would also require a forward-looking balance sheet, statement of operations and statement of cash flows, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to RSI without unreasonable effort. RSI provides a range for its Adjusted EBITDA forecast that it believes will be achieved; however, RSI cannot provide any assurance that it can predict all of the components of the Adjusted EBITDA calculation. RSI provides a forecast for Adjusted EBITDA because it believes that Adjusted EBITDA, when viewed with RSI’s results calculated in accordance with GAAP, provides useful information for the reasons noted herein. However, Adjusted EBITDA is not a measure of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income (loss) or cash flow from operating activities or as an indicator of operating performance or liquidity.

RSI defines Adjusted Earnings (Loss) Per Share as Adjusted Net Income (Loss) divided by Adjusted Weighted Average Common Shares Outstanding. Adjusted Net Income (Loss) is defined as net income (loss) attributable to Rush Street Interactive, Inc. as used in the diluted earnings (loss) per share calculations, adjusted for the reallocation of net loss attributable to non-controlling interests, share-based compensation, certain one-time or non-recurring items and other adjustments. Adjusted Weighted Average Common Shares Outstanding is defined as the weighted average number of common shares outstanding as used in the diluted earnings (loss) per share calculation, adjusted for the assumed conversion of the non-controlling interest’s Rush Street Interactive, LP Class A units to Class A common stock of RSI on a one-to-one-basis, only in periods of Net Loss, and incremental shares from assumed conversion of stock options and restricted stock units when dilutive to Adjusted Net Income.

Key Metrics
RSI provides certain key metrics, including Monthly Active Users (“MAUs”) and ARPMAU, in this press release. RSI defines MAUs as the number of unique users per month who have placed at least one real-money bet across one or more of our online casino or online sports betting offerings, and it defines ARPMAU as average revenue for the applicable period divided by the average MAUs for the same period.

Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. RSI’s actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “propose”, “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, statements regarding revenue and Adjusted EBITDA guidance, RSI’s future results of operations, financial condition, cash flows or profitability (whether on a GAAP or non-GAAP basis), currency fluctuations, RSI’s strategic plans and focus, anticipated launches or withdrawals of RSI’s current or new offerings in existing or future jurisdictions, player growth and engagement, product initiatives, outcomes of current or future regulatory developments and the objectives of management for future operations. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside RSI’s control and are difficult to predict. Factors that may cause such differences include, without limitation: changes in applicable laws or regulations; RSI’s ability to manage and sustain growth; RSI’s ability to execute its business plan, meet its projections and obtain relevant market access and/or gaming licenses; unanticipated product or service delays; general economic and market conditions impacting the demand for RSI’s products and services; economic and market conditions in the gaming, entertainment and leisure industry in the markets in which RSI operates; the potential adverse effects of general economic conditions, inflation and interest rates and unemployment on RSI’s liquidity, operations and personnel; and other risks and uncertainties indicated from time to time in RSI’s filings with the SEC. RSI cautions that the foregoing list of factors is not exclusive. RSI cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. RSI does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

Media Contacts:
Lisa Johnson
[email protected]

Investor Contact:
[email protected]

Rush Street Interactive, Inc. Condensed Consolidated Statements of Operations (Unaudited and in thousands, except per share data)

	Three Months Ended September 30,					Nine Months Ended September 30,
		2024		2023			2024		2023
	(Unaudited)		(Unaudited)			(Unaudited)		(Unaudited)
Revenue	$	232,109	$	169,887		$	669,916	$	497,310

Operating costs and expenses
Costs of revenue		151,414		116,159			440,414		333,166
Advertising and promotions		39,252		34,620			114,600		125,525
General and administrative		26,508		22,409			79,582		64,559
Depreciation and amortization		8,471		8,401			23,127		22,144
Total operating costs and expenses		225,645		181,589			657,723		545,394
Income (loss) from operations		6,464		(11,702	)		12,193		(48,084	)

Other income
Interest income, net		2,049		762			5,525		1,430
Income (loss) before income taxes		8,513		(10,940	)		17,718		(46,654	)

Income tax expense		5,274		2,426			16,970		7,946
Net income (loss)		3,239		(13,366	)		748		(54,600	)
Net income (loss) attributable to non-controlling interests		2,049		(9,187	)		385		(38,022	)
Net income (loss) attributable to Rush Street Interactive, Inc.	$	1,190	$	(4,179	)	$	363	$	(16,578	)

Earnings (loss) per common share attributable to Rush Street Interactive, Inc. – basic	$	0.01	$	(0.06	)	$	0.00	$	(0.25	)
Weighted average common shares outstanding – basic		82,847,325		69,698,787			79,652,992		67,465,694
Earnings (loss) per common share attributable to Rush Street Interactive, Inc. – diluted	$	0.01	$	(0.06	)	$	0.00	$	(0.25	)
Weighted average common shares outstanding – diluted		233,118,670		69,698,787			230,235,179		67,465,694

Rush Street Interactive, Inc. Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited and in thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Net income (loss)	$	3,239		$	(13,366	)	$	748		$	(54,600	)

Other comprehensive income (loss)
Foreign currency translation adjustment		(148	)		1,495			(3,781	)		3,465
Comprehensive income (loss)		3,091			(11,871	)		(3,033	)		(51,135	)
Comprehensive income (loss) attributable to non-controlling interests		1,956			(8,161	)		(2,049	)		(35,621	)
Comprehensive income (loss) attributable to Rush Street Interactive, Inc.	$	1,135		$	(3,710	)	$	(984	)	$	(15,514	)

Rush Street Interactive, Inc. Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited and in thousands)
Adjusted EBITDA:

	Three Months Ended September 30,						Nine Months Ended September 30,
*($ in thousands)*		2024			2023			2024			2023
Net income (loss)	$	3,239		$	(13,366	)	$	748		$	(54,600	)

Interest income, net		(2,049	)		(762	)		(5,525	)		(1,430	)
Income tax expense		5,274			2,426			16,970			7,946
Depreciation and amortization		8,471			8,401			23,127			22,144
Share-based compensation expense		8,458			7,402			26,574			22,595
Adjusted EBITDA	$	23,393		$	4,101		$	61,894		$	(3,345	)

Adjusted Operating Costs and Expenses:

	Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
GAAP operating costs and expenses:
Costs of revenue	$	151,414		$	116,159		$	440,414		$	333,166
Advertising and promotions		39,252			34,620			114,600			125,525
General and administrative		26,508			22,409			79,582			64,559
Depreciation and amortization		8,471			8,401			23,127			22,144
Total operating costs and expenses	$	225,645		$	181,589		$	657,723		$	545,394

Non-GAAP operating cost and expense adjustments:
Costs of revenue¹	$	(295	)	$	(269	)	$	(860	)	$	(795	)
Advertising and promotions¹		(606	)		(565	)		(1,866	)		(1,660	)
General and administrative¹		(7,557	)		(6,568	)		(23,848	)		(20,140	)
Depreciation and amortization		—			—			—			—
Total non-GAAP operating cost and expense adjustments	$	(8,458	)	$	(7,402	)	$	(26,574	)	$	(22,595	)

Adjusted operating costs and expenses:
Costs of revenue	$	151,119		$	115,890		$	439,554		$	332,371
Advertising and promotions		38,646			34,055			112,734			123,865
General and administrative		18,951			15,841			55,734			44,419
Depreciation and amortization		8,471			8,401			23,127			22,144
Total adjusted operating costs and expenses	$	217,187		$	174,187		$	631,149		$	522,799

Non-GAAP Operating Costs and Expense Adjustments include Share-based compensation expense.

Rush Street Interactive, Inc. Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited and in thousands, except share and per share data)
Adjusted Net Income (Loss), Adjusted Weighted Average Common Shares Outstanding and Adjusted Earnings (Loss) Per Share:

	Three Months Ended September 30,					Nine Months Ended September 30,
		2024		2023			2024		2023
Adjusted net income (loss)
Net income (loss) attributable to Rush Street Interactive, Inc. – basic	$	1,190	$	(4,179	)	$	363	$	(16,578	)
Effect of diluted securities:
Increase to net income attributable to non-controlling interests		2,049		—			385		—
Net income (loss) attributable to Rush Street Interactive, Inc. – diluted	$	3,239	$	(4,179	)	$	748	$	(16,578	)
Adjustments:
Net loss attributable to non-controlling interests⁽¹⁾		—		(9,187	)		—		(38,022	)
Share-based compensation expense		8,458		7,402			26,574		22,595
Adjusted net income (loss)	$	11,697	$	(5,964	)	$	27,322	$	(32,005	)

Adjusted weighted-average common shares outstanding
Weighted-average common shares outstanding – basic		82,847,325		69,698,787			79,652,992		67,465,694
Effect of diluted securities:
Assumed conversion of RSILP Units to Class A Common Shares		142,687,546		—			144,940,579		—
Incremental shares from assumed conversion of stock options and restricted stock units		7,583,799		—			5,641,608		—
Weighted-average common shares outstanding – diluted		233,118,670		69,698,787			230,235,179		67,465,694
Adjustments:
Assumed conversion of RSILP Units to Class A Common Shares⁽¹⁾		—		152,319,724			—		154,196,531
Adjusted weighted-average common shares outstanding		233,118,670		222,018,511			230,235,179		221,662,225

Adjusted earnings (loss) per share
Earnings (loss) per common share attributable to Rush Street Interactive, Inc. – basic	$	0.01	$	(0.06	)	$	0.00	$	(0.25	)
Earnings (loss) per common share attributable to Rush Street Interactive, Inc. – diluted	$	0.01	$	(0.06	)	$	0.00	$	(0.25	)
Adjusted Earnings (loss) per share	$	0.05	$	(0.03	)	$	0.12	$	(0.14	)

¹Adjusted net income (loss) includes the reallocation of net loss attributable to non-controlling interests that is not otherwise included in net income (loss) attributable to Rush Street Interactive, Inc. – diluted. Adjusted weighted-average common shares outstanding includes the assumed conversion of weighted-average RSILP units to Class A Common Shares that is not otherwise included in Weighted-average common shares outstanding – diluted.

¹ This is a non-GAAP financial measure. Please see “Non-GAAP Financial Measures” for more information about this non-GAAP financial measure and “Reconciliations of GAAP to Non-GAAP Financial Measures” for any applicable reconciliation of the most comparable measure calculated in accordance with GAAP to this non-GAAP financial measure.
²RSI is authorized to repurchase shares of its Class A common stock from time to time through open market purchases, privately negotiated transactions or other transactions in accordance with applicable securities laws. The timing and amount of repurchases depends on several factors, including market and business conditions, the trading price of RSI’s Class A Common Stock and the nature of other investment opportunities. This repurchase program does not require RSI to acquire any specific number or amount of Class A common stock and may be limited, amended or terminated at any time.