Rush Street Interactive has reported a second consecutive quarter of adjusted EBITDA profitability in the third quarter of 2023.
As a result of the strong quarter, the operator is expecting a positive adjusted EBITDA for the full year, and it has also raised its revenue guidance midpoint.
Publishing its Q3 results, RSI declared a 15 per cent year-over-year increase in revenue to $169.9m (Q3 2022: $148m) – $151m from US and Canadian operations, $19m from Latin American, including Mexico, operations.
Contributions from Latin America – Colombia and Mexico – have grown since Q1 2020 from 6.5 per cent to 11.2 per cent this past quarter. This is a figure which could grow even further in the future as the operator eyes potential expansion into Brazil, Chile, Peru, Argentina and Ecuador.
The operator has also stated that it is a top five operator in all visible icasino markets where it operates in the US and Canada – Delaware, Pennsylvania, West Virginia, Michigan, New Jersey and Ontario.
Monthly active users in icasino markets in the US and Canada were up four per cent YoY in Q3, while the average revenue per monthly active user in the US and Canada was $374, which is an eight per cent increase YoY (2022: $359).
“We’ve positioned ourselves as a top five online operator in the US, with a leading position in igaming and a growing online sportsbook.”
RSI CEO Richard Schwartz
The operator attributes the improvements to ARPMAU to its constant focus on ‘improving the quality of the customer experience’.
RSI’s net income improved during Q3, but it is still coming in at a loss of $13.4m (2022: $22.7m).
However, adjusted EBITDA profitability was achieved for the second consecutive quarter, reporting $4.1m in comparison to a loss of $12.5m the previous year. Adjusted advertising and promotions expense during the quarter came in at $34.1m (2022: $44.7m).
As of September 30, RSI had $171m of unrestricted cash and cash equivalents.
Commenting on the results, CEO Richard Schwartz said: “Thanks to our decade-long investment in cutting-edge technology and a customer-centric approach, we’ve positioned ourselves as a top five online operator in the US, with a leading position in igaming and a growing online sportsbook.
“As discerning consumers seek out the best products and user experiences, our third quarter results affirm our ability to deliver on both counts as we continue to acquire, engage and retain customers.”
Key highlights from RSI during Q3 include being selected by the Delaware Lottery as its exclusive online gaming provider – which is expected to launch later this year.
The operator also went live with its Prop Central functionality, with initial sportsbook results leading to material increases in higher-margin player prop bets.
“As we look ahead to new opportunities in North America and Latin America, we remain optimistic and excited about the path that lies ahead.”
RSI CEO Richard Schwartz
In response to the strong Q3, RSI is increasing the midpoint of its 2023 revenue guidance to $675m – revenue guidance between $665m and $685m – a 14 per cent YoY growth in comparison to 2022’s revenues of $592m.
Schwartz continued: “With strong revenue growth and more efficient marketing spend, we are proud to report another quarter of increasing quarterly profitability on an adjusted EBITDA basis as well as our expectation to have positive adjusted EBITDA for the full year, underscoring our commitment to sustainable growth and profitability.
“Our focus on innovation and efficiency has elevated our market-leading ROI enabling us to navigate competitive markets with remarkable success and resilience. As we look ahead to new opportunities in North America and Latin America, we remain optimistic and excited about the path that lies ahead.”
