Rush Street Interactive Reports Q3 2023 Financials

Rush Street Interactive, Inc. (NYSE: RSI), an igaming company specializing in online casinos and sports betting across the United States and other American markets, has disclosed its financial outcomes for the third quarter that concluded on September 30, 2023.

During the third quarter, the company saw its revenue rise to US$169.9 million (£139.5 million/€160.3 million), marking a 15% increase from the $148.0 million reported in the same period the previous year. The net loss for the company improved to $13.4 million in comparison to the $22.7 million loss reported in the third quarter of 2022.

A notable point for the quarter was the positive Adjusted EBITDA of $4.1 million, a significant turnaround from the Adjusted EBITDA loss of $12.5 million in the same quarter of the previous year. This marks the second consecutive quarter of increased Adjusted EBITDA profitability for the company.

The firm also optimized its marketing expenditures, with adjusted advertising and promotion expenses reported at $34.1 million, down from $44.7 million year-over-year. This strategic adjustment in spending reflects the company’s ongoing efforts to improve its financial efficiency.

Average Revenue per Monthly Active User (ARPMAU) within the U.S. and Canada showed an 8% increase, reaching $374. As of the end of the third quarter, Rush Street Interactive maintained a robust financial position with $171 million in unrestricted cash and cash equivalents.

Further bolstering its market presence, Rush Street Interactive has been selected by the Delaware Lottery as its exclusive online gaming provider, with a launch anticipated in the early winter. Additionally, the company has introduced its unique Prop Central feature within its sportsbook offering, which has already led to a noticeable uptick in higher-margin player proposition bets.

Looking ahead, the positive trends and strong performance have led Rush Street Interactive to raise its full-year 2023 revenue guidance, with a revised projected range of between $665 million and $685 million. This upward revision indicates confidence in the company’s continued growth trajectory and financial health for the remainder of the year.

Richard Schwartz, Chief Executive Officer of RSI, said, “Thanks to our decade-long investment in cutting-edge technology and a customer-centric approach, we’ve positioned ourselves as a top 5 online operator in the U.S., with a leading position in iGaming and a growing online sports book. 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.”

“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.”