Rush Street Interactive has stated it is “on track” towards profitability following improvements in the first quarter of 2023 in adjusted EBITDA and net loss.
CEO Richard Schwartz defined the quarter’s results as “excellent” as the company saw its revenues rise across several areas during the period, including significant growth in Latin America.
Publishing its Q1 report, RSI’s revenue was $162.4m, up 20 per cent year-over-year (Q1 2022: $134.9m) thanks to more than 100 per cent growth in Latin America and new market launches in North America.
The operator also reported revenue improvements in both online casino and online sportsbook.
Operating costs for the quarter came in at $184.4m, down slightly compared to the previous year (2022: $185m).
RSI also improved its net loss in Q1 to $24.5m (2022: $52.3m loss). Adjusted EBITDA was still a loss of $8.7m, but at a much better figure than the previous year (2022: $43.4m loss).
Adjusted advertising and promotions expense was $49.4m (2022: $66.3m), while average revenue per monthly active user in the US and Canada was $325, up 23 per cent YoY.
As of March 31, RSI had $147m of unrestricted cash and cash equivalents.
Schwartz commented: “We are pleased with our first quarter results as we made great strides towards profitability with much improved adjusted EBITDA performance.
“Revenues grew 20 per cent compared to last year, propelled by more than 100 per cent growth in Latin America and new markets launched in North America after 2020. Results were strong across our business lines with revenue growth in both online casino and online sportsbook.”
During Q1, RSI launched the BetRivers Michigan Million slot tournament, a “first-of-its-kind online casino experience” and continued to see “profitable growth” in casino markets, increasing in estimated market share sequentially in Ontario, Colombia and West Virginia.
The company also extended its proprietary squares engine to basketball, growing the average bet size and more than doubling same-game parlay wagers. Sportscaster and reporter Julie Stewart-Binks was also added to its roster.
Looking ahead, RSI’s revenue guidance for 2023 is unchanged from what was published at the end of the fourth quarter – between $630m and $700m, with the midpoint of the range of $665m representing a 12 per cent increase compared to 2022’s $592m.
Schwartz noted that profitability for the second half of the year is still obtainable on the back of the company’s Q1 performance.
“On the back of these excellent results, we remain on track to achieving our goal of profitability for the second half of this year. We are staying disciplined in our approach and successfully balancing growth and profitability over the long run.
“Our results continue to show the approach is working well and we remain confident that our focused strategy will reward our shareholders over the long term.”