- Second Quarter Revenue of $122.8 Million, up
89% Year-over-Year - - Full Year 2021 Revenue Guidance Raised to
between $465 and $495 Million -
Rush Street Interactive, Inc. (NYSE:RSI) (“RSI”), a leading
online casino and sports betting company in the United States,
today announced financial results for the second quarter ended June
30, 2021.
Second Quarter 2021 Financial Highlights
- Revenue was $122.8 million during the second quarter of 2021,
an increase of 89%, compared to $65.0 million during the second
quarter of 2020.
- Net loss was $14.0 million during the second quarter of 2021,
compared to a net loss of $50.6 million during the second quarter
of 2020.
- Adjusted EBITDA1 loss was $6.6 million during the second
quarter of 2021, compared to an Adjusted EBITDA of $3.7 million
during the second quarter of 2020.
- Adjusted advertising and promotions expense1 was $36.9 million,
or 30% of revenue, during the second quarter of 2021, compared to
$7.4 million during the second quarter of 2020.
- Real-Money Monthly Active Users (“MAUs”) in the United States
for the second quarter of 2021 were up 128% year-over-year with
average revenue per MAU (“ARPMAU”) of $377 during the second
quarter of 2021.
- As of June 30, 2021, RSI had $361 million of unrestricted cash
and cash equivalents.
Richard Schwartz, Chief Executive Officer of RSI, said, “We are
very pleased with the continued execution of our business strategy
and remain focused on providing a premiere user experience for our
customers. In addition to successfully growing revenues in existing
markets, we have made significant progress in securing access
opportunities to new markets. Earlier today, we announced an
extremely exciting partnership with the State of Connecticut, where
we will be the exclusive partner of the Connecticut Lottery
offering both mobile and retail sports wagering, and be one of only
three operators operating in the state. This week, we also
announced an agreement for market access opportunities in
Louisiana, Mississippi, and New Mexico, with the latter two subject
to those states passing mobile gaming legislation. Earlier this
week, we also submitted mobile sports betting applications in New
York and Arizona.
While new market access is a key pillar to our growth story, we
also continue to work diligently to expand our exclusive content
offering for both sport betting and casino games as exemplified by
new partnerships with GTG Network for co-exclusive sports betting
information and Boom Entertainment for exclusive casino content.
Stay tuned for the launch of new and exclusive offerings in coming
quarters.
On the sports betting side, and as we head into the
ever-important football season, BetRivers recently entered into a
partnership with the Chicago Bears and is excited to be working
with several highly recognized and well-respected former athletes
as brand ambassadors. This includes our recent announcement of
Chicago football legend Mike Ditka who we are thrilled to have on
our team. We look forward to creating and streaming exclusive
content from these hometown heroes, directly to the BetRivers and
PlaySugarHouse apps.
Our ongoing commitment to improving the player experience by
enhancing the quality of our mobile apps and sites, coupled with
solid execution on our marketing programs, has led to continued
impressive paybacks, along with strong conversion and retention
rates. The strength of these metrics and efficiency of our
marketing efforts supports our confidence in the long-term success
of the business.”
Increasing 2021 Revenue Guidance
RSI expects revenues for the full year ending December 31, 2021
to be between $465 and $495 million, up from its previous guidance
of between $440 and $480 million. At the midpoint of the range,
revenue of $480 million represents 72% year-over-year growth when
compared to $278.5 million of revenues for 2020. This increase
reflects RSI’s strong first half 2021 results and anticipated
growth in recently opened and existing markets resulting from
increased marketing spend funded with cash on hand.
This range is based on certain assumptions, including that (i)
launch of operations in any new jurisdictions are not included,
(ii) all professional and college sports calendars that have been
announced come to fruition, including the completion or
commencement of their 2021 seasons, and (iii) RSI continues to
operate in states in which it is live today.
Recent Business Highlights
- Announced market access partnerships for five new markets,
including Connecticut, Arizona, Louisiana, Mississippi and New
Mexico, with the latter two being subject to the passage of
enabling mobile gaming legislation. We anticipate being able to
launch in Connecticut, Arizona, and Louisiana during the upcoming
football season.
- Crowned Casino Operator of the Year, Customer Services Operator
of the Year and Social Gaming Operator of the Year at the EGR North
America Awards 2021, winning the first two awards for the 2nd year
in row. The continued recognition for customer service exemplifies
how our market leading user experience drives players to remain
loyal to our platform.
- Announced a multi-year exclusive partnership with the Chicago
Bears and Rivers Casino making BetRivers the Bears’ Official
Sportsbook partner.
- Formed a brand ambassador partnership agreement with NFL legend
Mike Ditka.
- Launched Evolution Gaming’s online live dealer casino games in
Michigan on July 22nd, the first day the product was authorized to
launch in the state.
- Partnered with Scientific Games to be the first operator to
premiere its proven online casino game library in West Virginia at
BetRivers.com.
- Announced a multi-year co-exclusive partnership with GTG
Network to offer GTG’s iSport Genius data facts and insights in all
states where RSI operates its online sportsbooks.
- Made a minority investment in Boom Entertainment, a premier
online gaming developer and technology provider, and entered into a
partnership with them that brings with it several potential market
access opportunities in states such as Mississippi, New Mexico and
Louisiana, along with incremental high-quality online casino games,
including certain exclusive games only available on our
platform.
- Added to the Russell 2000® Index and Russell 3000® Index as
part of the indexes’ annual reconstitution that took place on June
25, 2021.
Technology Updates
- RSI mobile sportsbook app independently rated #4 out of 31 apps
in the US market in July 2021 by Eilers & Krejcik.
- Launched Android App on GooglePlay across our US
footprint.
- Launched new and materially improved iOS apps in Illinois,
Iowa, Indiana, Colorado and Virginia.
- Remain on track to launch an iOS app in live casino markets in
2H21.
- Brought several exciting new sports betting features to market
including betting tips, a stats center, enhanced player search
functionality, live event score and game clock updates and more
live streamed content.
- Plans to offer more advanced single game parlay bet options in
time for the upcoming NFL season where customers will be able to
parlay the existing moneyline, spread and totals with player prop
bets including passing yards, rushing yards, touchdowns scored and
more.
Earnings Conference Call and Webcast Details
RSI will host a conference call and audio webcast today at 5:00
p.m. Eastern Time (4:00 p.m. Central Time), during which management
will discuss second quarter results and provide commentary on
business performance and its current outlook for 2021. A
question-and-answer session will follow the prepared remarks.
The conference call may be accessed by dialing (844) 200-6205
for domestic callers or +44 208-0682-558 for international callers.
The conference call access code is 828144.
A live audio webcast of the earnings conference call may be
accessed on RSI’s website at ir.rushstreetinteractive.com, along
with a copy of this press release and an investor slide
presentation. The audio webcast and investor slide presentation
will be available on RSI’s investor relations website until at
least September 12, 2021.
About Rush Street Interactive
RSI is a trusted online gaming and sports entertainment company
focused only on legal and regulated markets in the United States
and Latin America. Through its brands, BetRivers.com and
PlaySugarHouse.com, RSI was an early entrant in many regulated
jurisdictions and is currently live with real-money mobile, online
and/or retail operations in ten U.S. states: Pennsylvania,
Illinois, New Jersey, New York, Michigan, Indiana, Virginia,
Colorado, Iowa and West Virginia. RSI is also active
internationally, offering its online casino and sportsbook in the
regulated gaming market of Colombia on RushBet.co. RSI offers,
through its proprietary online gaming platform, some of the most
popular online casino games and sports betting options in the
United States. Founded in 2012 in Chicago by gaming industry
veterans, RSI was named the 2020 Global Gaming Awards Digital
Operator of the Year and the 2021 EGR North America Awards Casino
Operator of the Year, Customer Services Operator of the Year and
Social Gaming Operator of the Year. RSI is committed to
industry-leading responsible gaming practices and seeks to provide
its customers with the resources and services they need to play
responsibly. For more information, visit
www.rushstreetinteractive.com.
Non-GAAP Financial Measures
In addition to providing financial measurements based on
accounting principles generally accepted in the United States
(“GAAP”), this press release includes certain financial measures
that are not prepared in accordance with GAAP, including Adjusted
EBITDA, Adjusted Operating Costs and Expenses, Adjusted Net Loss
Per Share, Adjusted Net Loss and Adjusted Weighted Average Common
Shares Outstanding, each of which is a non-GAAP performance measure
that RSI uses to supplement its results presented in accordance
with GAAP. A reconciliation of each such non-GAAP financial measure
to the most directly comparable GAAP financial measure can be found
below. RSI believes that presentation of these non-GAAP financial
measures provides useful information to investors regarding RSI’s
results of operations and operating performance, as they are
similar to measures reported by its public competitors and are
regularly used by security analysts, institutional investors and
other interested parties in analyzing operating performance and
prospects. These non-GAAP financial measures are not intended to be
considered in isolation or as a substitute for any GAAP financial
measures and, as calculated, may not be comparable to other
similarly titled measures of performance of other companies in
other industries or within the same industry.
RSI defines Adjusted EBITDA as net income (loss) before
interest, income taxes, depreciation and amortization, share-based
compensation, adjustments for certain one-time or non-recurring
items and other adjustments. Adjusted EBITDA excludes certain
expenses that are required in accordance with GAAP because certain
expenses are either non-cash (for example, depreciation and
amortization, and share-based compensation) or are not related to
our underlying business performance (for example, interest income
or expense).
RSI defines Adjusted Operating Costs and Expenses as RSI’s GAAP
operating costs and expenses adjusted to exclude the impacts of
share-based compensation, certain one-time or non-recurring items
and other adjustments. Adjusted Operating Costs and Expenses
excludes certain expenses that are required in accordance with GAAP
because certain expenses are either non-cash (for example,
share-based compensation) or are not related to our underlying
business performance.
RSI defines Adjusted Net Loss Per Share as Adjusted Net Loss
divided by Adjusted Weighted Average Common Shares Outstanding.
Adjusted Net Loss is defined as net loss attributable to Rush
Street Interactive, Inc. as used in the diluted net loss per share
calculation, adjusted for the reallocation of net loss attributable
to noncontrolling interests, share-based compensation, certain
one-time or non-recurring items and other adjustments. Adjusted
Weighted Average Common Shares Outstanding is defined as the
weighted average number of common shares outstanding as used in the
diluted net loss per share calculation, adjusted for the assumed
conversion of the noncontrolling interest’s Rush Street
Interactive, LP Class A units to Class A common stock of RSI on a
one-to-one-basis.
RSI includes these non-GAAP financial measures because
management uses them to evaluate RSI’s core operating performance
and trends and to make strategic decisions regarding the allocation
of capital and new investments. Management believes that these
non-GAAP financial measures provide investors with useful
information on RSI’s past financial and operating performance,
enable comparison of financial results from period-to-period where
certain items may vary independent of business performance, and
allow for greater transparency with respect to metrics used by
RSI’s management in operating our business. Management also
believes these non-GAAP financial measures are useful in evaluating
our operating performance compared to that of other companies in
our industry, as these metrics generally eliminate the effects of
certain items that may vary from company to company for reasons
unrelated to overall operating performance.
Key Metrics
RSI provides certain key metrics, including MAUs and ARPMAU, in
this press release. RSI defines MAUs as the number of unique
players per month who have placed at least one real-money bet
across one or more of our online casino or online sports betting
offerings, and it defines ARPMAU as average revenue for the
applicable period divided by the average MAUs for the same
period.
The numbers RSI uses to calculate MAUs and ARPMAU are based on
internal RSI data. While these numbers are based on what RSI
believes to be reasonable judgments and estimates of our customer
base for the applicable period of measurement, there are inherent
challenges in measuring usage and engagement with respect to our
online offerings across our customer base. Such challenges and
limitations may also affect RSI’s understanding of certain details
of its business. In addition, RSI’s key metrics and related
estimates, including the definitions and calculations of the same,
may differ from estimates published by third parties or from
similarly-titled metrics of its competitors due to differences in
operations, offerings, methodology and access to information. RSI
regularly reviews, and may adjust its processes for calculating,
its internal metrics to improve their accuracy.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. RSI's actual results may
differ from their expectations, estimates and projections and
consequently, you should not rely on these forward-looking
statements as predictions of future events. Words such as "expect,"
"estimate," "project," "budget," "forecast," "anticipate,"
"intend," "plan," "may," "will," "could," "should," "believes,"
"predicts," "potential," "continue," and similar expressions are
intended to identify such forward-looking statements. These
forward-looking statements include, without limitation, statements
regarding guidance, RSI’s future results of operations or financial
condition, RSI’s strategic plans and focus, player growth and
engagement, product initiatives and the objectives of management
for future operations. These forward-looking statements involve
significant risks and uncertainties that could cause the actual
results to differ materially from the expected results. Most of
these factors are outside RSI's control and are difficult to
predict. Factors that may cause such differences include, without
limitation: changes in applicable laws or regulations; RSI’s
ability to manage growth; RSI’s ability to execute our business
plan and meet its projections; unanticipated product or service
delays; general economic and market conditions impacting the demand
for RSI’s products and services; economic and market conditions in
the gaming, entertainment and leisure industry in the markets in
which RSI operates; the potential adverse effects of the COVID-19
pandemic on capital markets, general economic conditions,
unemployment and RSI’s liquidity, operations and personnel; and
other risks and uncertainties indicated from time to time in RSI's
filings with the SEC. RSI cautions that the foregoing list of
factors is not exclusive. RSI cautions readers not to place undue
reliance upon any forward-looking statements, which speak only as
of the date made. RSI does not undertake or accept any obligation
or undertaking to release publicly any updates or revisions to any
forward-looking statements to reflect any change in its
expectations or any change in events, conditions or circumstances
on which any such statement is based.
Rush Street Interactive,
Inc.
Consolidated Condensed
Statements of Operations and Comprehensive Loss
(Unaudited and in thousands,
except per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Revenue
$
122,800
$
65,038
$
234,620
$
100,215
Operating costs and expenses
Costs of revenue
84,760
49,287
164,447
71,667
Advertising and promotions
37,543
7,445
79,759
15,915
General administration and other
11,768
58,399
28,332
75,165
Depreciation and amortization
914
457
1,588
916
Total operating costs and expenses
134,985
115,588
274,126
163,663
Loss from operations
(12,185
)
(50,550
)
(39,506
)
(63,448
)
Other income (expenses)
Interest expense, net
(17
)
(40
)
(30
)
(85
)
Change in fair value of warrant
liabilities
-
-
41,802
-
Change in fair value of earnout interests
liability
-
-
(13,740
)
-
Total other income (expenses)
(17
)
(40
)
28,032
(85
)
Loss before income taxes
(12,202
)
(50,590
)
(11,474
)
(63,533
)
Income tax expense
1,752
-
2,556
-
Net loss
$
(13,954
)
$
(50,590
)
$
(14,030
)
$
(63,533
)
Net loss attributable to non-controlling
interests
(10,187
)
-
(10,246
)
-
Net loss attributable to Rush Street
Interactive, Inc.
$
(3,767
)
$
(50,590
)
$
(3,784
)
$
(63,533
)
Net loss per common share attributable to
Rush Street Interactive, Inc. – basic
$
(0.06
)
N/A
$
(0.07
)
N/A
Weighted average common shares outstanding
– basic
59,163,547
N/A
53,093,129
N/A
Net loss per common share attributable to
Rush Street Interactive, Inc. – diluted
$
(0.06
)
N/A
$
(0.24
)
N/A
Weighted average common shares outstanding
– diluted
59,163,547
N/A
55,452,029
N/A
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Net loss
$
(13,954
)
$
(50,590
)
$
(14,030
)
$
(63,533
)
Other comprehensive income
(loss)
Foreign currency translation
adjustment
(268
)
54
(892
)
(310
)
Comprehensive loss
$
(14,222
)
$
(50,536
)
$
(14,922
)
$
(63,843
)
Comprehensive loss attributable to
non-controlling interests
(10,383
)
-
(10,923
)
-
Comprehensive loss attributable to Rush
Street Interactive, Inc.
$
(3,839
)
$
(50,536
)
$
(3,999
)
$
(63,843
)
Rush Street Interactive,
Inc.
Reconciliations of GAAP to
Non-GAAP Financial Measures
(Unaudited and in thousands)
Adjusted EBITDA:
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Net loss
$
(13,954
)
$
(50,590
)
$
(14,030
)
$
(63,533
)
Depreciation and amortization
914
457
1,588
916
Interest expense, net
17
40
30
85
Income tax expense
1,752
-
2,556
-
Change in fair value of warrant
liability
-
-
(41,802
)
-
Change in fair value of earnout interests
liability
-
-
13,740
-
Share-based compensation
4,661
53,769
16,237
67,259
Adjusted EBITDA
$
(6,610
)
$
3,676
$
(21,681
)
$
4,727
Adjusted Operating Costs and
Expenses:
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
GAAP operating costs and
expenses:
Costs of revenue
$
84,760
$
49,287
$
164,447
$
71,667
Advertising and promotions
37,543
7,445
79,759
15,915
General administration and other
11,768
58,399
28,332
75,165
Depreciation and amortization
914
457
1,588
916
Total operating costs and
expenses
$
134,985
$
115,588
$
274,126
$
163,663
Non-GAAP operating cost and expense
adjustments:
Costs of revenue1
$
(298
)
$
-
$
(1,213
)
$
-
Advertising and promotions1
(636
)
-
(2,334
)
-
General administration and other1
(3,727
)
(53,769
)
(12,690
)
(67,259
)
Depreciation and amortization
-
-
-
-
Total non-GAAP operating cost and
expense adjustments
$
(4,661
)
$
(53,769
)
$
(16,237
)
$
(67,259
)
Adjusted operating costs and
expenses:
Costs of revenue
$
84,462
$
49,287
$
163,234
$
71,667
Advertising and promotions
36,907
7,445
77,425
15,915
General administration and other
8,041
4,630
15,642
7,906
Depreciation and amortization
914
457
1,588
916
Total adjusted operating costs and
expenses
$
130,324
$
61,819
$
257,889
$
96,404
1 Share-based compensation.
Rush Street Interactive,
Inc.
Reconciliations of GAAP to
Non-GAAP Financial Measures
(Unaudited and in thousands)
Adjusted Net Loss, Adjusted Weighted
Average Common Shares Outstanding and Adjusted Net Loss Per
Share:
Three Months Ended June 30,
2021
Six Months Ended June 30,
2021
Adjusted Net Loss
Net loss attributable to Rush Street
Interactive, Inc. – diluted(1)
$
(3,767
)
$
(13,353
)
Adjustments:
Add: Net loss attributable to
non-controlling interests
(10,187
)
(10,246
)
Less: Change in fair value of warrant
liabilities attributable to noncontrolling interests
-
(32,233
)
Add: Change in fair value of earnout
interests liability
-
13,740
Add: Share-based compensation expense
4,661
16,237
Adjusted Net Loss
$
(9,293
)
$
(25,855
)
Adjusted Weighted Average Common Shares
Outstanding
Weighted average common shares outstanding
– diluted(2)
59,163,547
55,452,029
Adjustments:
Add: Conversion of RSILP units to Class A
Common Shares
160,000,000
160,000,000
Adjusted Weighted Average Common Shares
Outstanding
219,163,547
215,452,029
Net loss per common share attributable to
Rush Street Interactive, Inc. – diluted:
$
(0.06
)
$
(0.24
)
Adjusted Net Loss per Share
$
(0.04
)
$
(0.12
)
(1)
Net loss attributable to Rush Street
Interactive, Inc. – diluted for the six months ended June 30, 2021,
includes the Net loss attributable to Rush Street Interactive, Inc.
adjusted for the dilutive effect of previously outstanding warrants
that were redeemed in March 2021 (i.e., the portion of the change
in fair value of warrants attributed to Rush Street Interactive
Inc.). There was no dilutive effect for the three months ended June
30, 2021.
(2)
Weighted average common shares outstanding
– diluted for the six months ended June 30, 2021, includes the
basic number of weighted average common shares outstanding,
adjusted for the dilutive effect of previously outstanding warrants
that were redeemed in March 2021 using the Treasury Stock Method.
There was no dilutive effect for the three months ended June 30,
2021.
__________________ 1 This is a non-GAAP financial measure.
Please see “Non-GAAP Financial Measures” for more information about
this non-GAAP financial measure and “Reconciliations of GAAP to
Non-GAAP Financial Measures” for a reconciliation of the most
comparable measure calculated in accordance with GAAP to this
non-GAAP financial measure.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210812005833/en/
Media: Jonathan Gasthalter / Carissa Felger / Nathaniel
Garnick (312) 319-9233 / (212) 257-4170 rsi@gasthalter.com or Lisa
Johnson (609) 788-8548 lisa@lisajohnsoncommunications.com
Investors: ir@rushstreetinteractive.com
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