RSI Posts Strong Q3 Report, Boosts FY Guidance

Leading gaming and betting operator Rush Street Interactive (RSI), published its financials for the quarter ended September 30, outlining a vast increase in revenue and income.

Because of the strong performance, Rush Street Interactive updated its guidance to reflect its current forecasts.

RSI Posts Strong Metrics Across the Board

Rush Street Interactive reported $232.1 million in Q3 revenue, marking a stellar increase of 37% year-on-year. Whereas the company reported a net loss of $13.3 million in Q3 2023, it now published a net income of $3.2 million.

Adjusted EBITDA skyrocketed from $4.1 million in Q3 2023 to $23.4 million in Q3 2024, highlighting the company’s progress.

Adjusted advertising and promotion expenses reached $38.6 million, marking a 13% increase year-on-year. The increased expenses led to an increase in users in the US and Canada where there were approximately 168,000 monthly active users, up 28% YOY. At the same time, MAUs in LATAM (including Mexico) surged to 329,000, up 122% YOY.

Customers in the US and Canada spent an average of $388 a month, up 4% YOY. Those in LATAM, on the other hand, toned down their spending to $39 a month (previously $43).

RSI noted that, as of September 30, 2024, it had $216 million in unrestricted cash and cash equivalents.

As mentioned, RSI updated its guidance for 2024 following the publication of its latest report. The company expects FY revenue of between $900 and $920 million, increasing the midpoint by $30 million from the prior guidance. The midpoint of the current range ($910 million) would represent a 32% YOY growth, RSI added.

In the meantime, the company also expects Adjusted EBITDA in the range of $82 and $86 million, increasing the midpoint by $16 million compared to the previous guidance. The midpoint range ($84 million) would mark a significant increase from $8.2 million of adjusted EBITDA for 2023.

Additionally, a few days ago, RSI confirmed a share-buyback program that will see the company repurchase up to $50 million of its Class A common stock.

Innovation Drives Growth

Richard Schwartz, RSI’s CEO commented on the latest report, expressing excitement about the spectacular financial performance. He said that the record-breaking results are the result of the company’s efficient strategy and ability to execute its goals. The CEO added that the commitment to innovation continues to drive player retention and, by extension, growth.

We’ve accelerated player growth for another consecutive quarter, acquired significantly more players with much greater marketing efficiency, all the while increasing our player values. This combination sets us up well for continued strong performance.

Richard Schwartz, CEO, RSI

Schwartz was likewise excited about the share buyback program, which further highlights the company’s confidence in its future.

In other news, the company just launched a new online poker platform in Pennsylvania.