Rush Street Interactive is optimistic about its future after achieving a positive adjusted EBITDA figure in the second quarter of 2023.
CEO Richard Schwartz noted that the increase in profitability was mainly driven by operational improvements as the midpoint of the operator’s full year guidance was raised by $5m.
Publishing its Q2 financials, RSI declared $165.1m in revenue for the quarter, a 15 per cent increase when compared to the previous year (Q2 2022: $143.7m). Revenue also grew in comparison to Q1’s $162.4m.
The operator highlighted a strong contribution from operations in Colombia, as revenue grew in the Latin American nation by almost 50 per cent year-over-year when measured in Colombian pesos, and by over 30 per cent in US dollars.
“This increase in profitability was mainly driven by operational improvements”
Richard Schwartz, CEO of Rush Street Interactive
The average revenue per monthly active user in the US and Canada rose by 11 per cent to $359 (2022: $325) and 10 per cent sequentially.
Loss from operations was also better than the previous year, rising by 44.5 per cent to $14.3m (2022: $25.8m).
As a result of the revenue improvements, net income rose as well in comparison to last year’s figure, although still at a loss. RSI reported a Q2 net loss of $16.7m, up 40.9 per cent YoY (2022: $28.3m).
Adjusted EBITDA moved back into the positive during the quarter to $1.2m, up from a loss of $18.6m the previous year. Adjusted advertising and promotions expenses came in at $40.4m, down 8.6 per cent (2022: $44.2m).
As of June 30, 2023, RSI had $128m of unrestricted cash and cash equivalents and no debt.
Reflecting on the results, Schwartz commented: “Through the first half of the year the organisation performed exceptionally well, achieving positive adjusted EBITDA ahead of schedule.
“This performance capped our strong first half with an adjusted EBITDA improvement of over $54m compared to the first half of the prior year.
“This increase in profitability was mainly driven by operational improvements, as well as 15 per cent revenue growth, led by strong growth in Colombia and markets that we launched after 2020.”
During Q2, alongside the improvements seen in Colombia, RSI also introduced a new feature for online casino called ‘Jackpot hot mode’, offering daily and hourly jackpots to boost player engagement.
“…we are confident in our ability to continue executing successfully, positioning ourselves for further revenue and profitability growth”
Richard Schwartz, CEO of Rush Street Interactive
Poker Night in America also produced TV poker content from a private mansion in Vegas called Studio 52.
As for sports betting, RSI introduced prop bet list views which drove MLB prop betting up by 60 per cent YoY. Improvements were also made to same game parlays, leading to a higher hold percentage.
Across North America, MAUs in online casino markets rose by 9 per cent during the quarter.
Looking ahead, RSI has improved its 2023 revenue guidance at the midpoint by $5m with its guidance range adjusting between $650m and $690m (previously $630m and $700m). The midpoint of the range – $670m – marks 13 per cent YoY growth (2022: $592m).
Schwartz added: “We have built a fundamentally strong business with a firm foundation. Looking ahead, we are optimistic about our ability to innovate and continue to improve the quality of the user experience.
“With a solid financial position, a proprietary and scalable technology platform, and effective operational discipline, we are confident in our ability to continue executing successfully, positioning ourselves for further revenue and profitability growth in the future.”