Rush Street Interactive expects positive adjusted EBITDA for H2 2023

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Rush Street Interactive has stated that it expects to achieve a positive adjusted EBITDA for the second half of 2023 in its latest financial results following a record year.

The operator’s CEO, Richard Schwartz, declared a robust fourth quarter and new annual highs thanks to significant growth in the Latin American and North American markets.

RSI has also issued its revenue guidance for 2023 of between $630m and $700m.

Record 2022 for RSI

Publishing its Q4 results, RSI reported a revenue increase of 27 per cent year-over-year to $165.5m (Q4 2021: $130.6m).

The operator declared that operating costs for the quarter finished at $193.9m, a 15.6 per cent increase YoY (2021: $167.6m), while also reporting a net loss of $31.1m.

This marks an 18.4 per cent improvement YoY (2021: $38.1m), and although adjusted EBITDA was a loss of $17.3m, this was a 44.5 per cent gain YoY (2021: $31.2m).

Real-money monthly active users in the US and Canada were up 22 per cent YoY, and the average revenue per MAU was $327.

During the quarter, RSI expanded its presence in Latin America by opening two new offices in Colombia, while it also enhanced its technology platform with player segmentations to further personalise casino experiences.

The operator has also launched a new squares game and has made advancements in the US, launching its online sportsbook in Maryland in November and in Ohio on New Year’s Day 2023, as well as receiving Responsible Gambling Council’s RG Check accreditation.

For the full year, RSI declared a 21 per cent YoY growth in revenue to a new record of $592.2m (2021: $488.1m) due to notable growth in North America and Latin America markets.

The operator has stated that in respective Latin American and North American markets launched after 2020, revenue has risen by 95 per cent.

Operating costs for 2022 rose by 23.1 per cent YoY to $717m (2021: $582.4m), while net loss also increased by 88.9 per cent YoY to $134.3m (2021: $71.1m), and adjusted EBITDA for the year concluded at a loss of $91.8m, a 40.9 per cent increase YoY (2021: $65.1m).

MAUs for the year in the US and Canada were up by 29 per cent YoY with an ARPMAU of $315, down 9 per cent YoY.

Schwartz commented: “We are proud to report another strong quarter and record results for the year, spurred by 95 per cent annual growth in our Latin American and new North American markets launched after 2020.”

2023 outlook

Looking ahead, RSI has published its guidance for 2023, declaring that it expects revenue for the full year to be between $630m and $700m, with the midpoint of the range of $665m representing a 12 per cent increase compared to 2022’s $592m.

Schwartz also added that the operator expects to achieve a positive adjusted EBITDA for the second half of the year as it continues to be selective with market investment.

The CEO said: “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.”