Rush Street Interactive, Inc. (NYSE: RSI) (“RSI”), a leading online
casino and sports betting company in the United States and the rest
of the Americas, today announced financial results for the second
quarter ended June 30, 2023.
Second Quarter 2023
Highlights
- Revenue was
$165.1 million during the second quarter of 2023, an increase
of 15%, compared to $143.7 million during the second quarter
of 2022.
- Net loss was $16.7 million
during the second quarter of 2023, compared to a net loss of $28.3
million during the second quarter of 2022.
- Adjusted EBITDA1 was a
positive $1.2 million during the second quarter of 2023,
compared to an Adjusted EBITDA loss of $18.6 million during
the second quarter of 2022.
- Adjusted advertising and promotions
expense1 was $40.4 million during the second quarter of 2023,
compared to $44.2 million during the second quarter of 2022.
- Average Revenue per Monthly Active
User (“ARPMAU”) in the United States and Canada was $359 during the
second quarter of 2023, up 11% year-over-year.
- As of June 30, 2023, RSI had
$128 million of unrestricted cash and cash equivalents.
Richard Schwartz, Chief Executive Officer of
RSI, said, “Through the first half of the year the organization
performed exceptionally well, achieving positive adjusted EBITDA
ahead of schedule. This performance capped our strong first half
with an adjusted EBITDA improvement of over $54 million compared to
the first half of the prior year. This increase in profitability
was mainly driven by operational improvements, as well as 15%
revenue growth, led by strong growth in Colombia and markets that
we launched after 2020.”
“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.”
______________________________
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.
Guidance
RSI expects revenue for the full year ending
December 31, 2023 to be between $650 and $690 million,
increasing the midpoint by $5 million compared to the previous
guidance. At the midpoint of the range, revenue of
$670 million represents 13% year-over-year growth when
compared to $592 million of revenues for 2022.
This range is based on certain assumptions,
including that (i) only operations in live jurisdictions as of
today’s date are included, (ii) all professional and college sports
calendars that have been announced come to fruition, including the
completion of their 2023 seasons, and (iii) RSI continues to
operate in markets in which it is live today, except for
Connecticut.
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 2023. A question-and-answer session will follow the prepared
remarks.
The conference call may be accessed by dialing
1-844-200-6205 (Toll Free) or 1-646-904 5544 (Local) or, for
international callers, 1-929-526-1599. The conference call access
code is 027620.
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 2, 2023.
About Rush Street
Interactive
RSI is a trusted online gaming and sports
entertainment company focused on markets in the United States,
Canada and Latin America. Through its brands, BetRivers,
PlaySugarHouse and RushBet, RSI was an early entrant in many
regulated jurisdictions. It currently offers real-money mobile and
online operations in fifteen U.S. states: Pennsylvania, Illinois,
New Jersey, New York, Ohio, Connecticut, Michigan, Indiana,
Virginia, Colorado, Maryland, Iowa, West Virginia, Arizona and
Louisiana, as well as in the regulated international markets of
Ontario, Canada, Colombia and Mexico. 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 2023 EGR North America Awards Customer Services Operator
of the Year, the 2022 EGR North America Awards Operator of the
Year, Customer Services Operator of the Year and Social Gaming
Operator of the Year, and the 2021 SBC Latinoamérica Awards
Sportsbook Operator of the Year. RSI was the first U.S.-based
online casino and sports betting operator to receive RG Check
iGaming Accreditation from the Responsible Gaming Council. 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 securities 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 (i.e., depreciation and
amortization, and share-based compensation) or are not related to
our underlying business performance (i.e., 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
(i.e., 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 non-controlling 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
non-controlling 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
Monthly Active Users (“MAUs”) and ARPMAU, in this press release.
RSI defines MAUs as the number of unique users 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 its customer base for the applicable period of measurement,
there are inherent challenges in measuring usage and engagement
with respect to RSI’s online offerings across its 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, financial condition or profitability, currency
fluctuations, RSI’s strategic plans and focus, anticipated launches
or withdrawals of RSI’s current or new offerings in existing or
future jurisdictions, 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 and sustain
growth; RSI’s ability to execute its business plan, meet its
projections and obtain relevant market access and/or gaming
licenses; 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 general economic
conditions, inflation rates and unemployment on 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, except as required by law.
Media Contacts:Lisa
Johnson(609) 788-8548lisa@lisajohnsoncommunications.com
Investor
Contact:ir@rushstreetinteractive.com
|
Rush Street Interactive, Inc. |
|
Condensed Consolidated Statements of
Operations |
|
(Unaudited and in thousands, except per share data) |
| |
| |
Three Months Ended June
30, |
|
Six Months Ended June
30, |
| |
2023 |
|
2022 |
|
2023 |
|
2022 |
| |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
Revenue |
$ |
165,062 |
|
|
$ |
143,736 |
|
|
$ |
327,423 |
|
|
$ |
278,674 |
|
| |
|
|
|
|
|
|
|
| Operating costs and
expenses |
|
|
|
|
|
|
|
|
Costs of revenue |
|
109,853 |
|
|
|
104,882 |
|
|
|
217,007 |
|
|
|
204,740 |
|
|
Advertising and promotions |
|
40,965 |
|
|
|
44,742 |
|
|
|
90,905 |
|
|
|
111,591 |
|
|
General administration and other |
|
20,558 |
|
|
|
16,610 |
|
|
|
42,150 |
|
|
|
32,150 |
|
|
Depreciation and amortization |
|
7,988 |
|
|
|
3,290 |
|
|
|
13,743 |
|
|
|
6,027 |
|
| Total operating costs and
expenses |
|
179,364 |
|
|
|
169,524 |
|
|
|
363,805 |
|
|
|
354,508 |
|
| Loss from
operations |
|
(14,302 |
) |
|
|
(25,788 |
) |
|
|
(36,382 |
) |
|
|
(75,834 |
) |
| |
|
|
|
|
|
|
|
| Other income
(expenses) |
|
|
|
|
|
|
|
|
Interest income (expense), net |
|
288 |
|
|
|
(223 |
) |
|
|
668 |
|
|
|
(445 |
) |
| Total other income
(expenses) |
|
288 |
|
|
|
(223 |
) |
|
|
668 |
|
|
|
(445 |
) |
| Loss before income
taxes |
|
(14,014 |
) |
|
|
(26,011 |
) |
|
|
(35,714 |
) |
|
|
(76,279 |
) |
| |
|
|
|
|
|
|
|
| Income tax expense |
|
2,720 |
|
|
|
2,335 |
|
|
|
5,520 |
|
|
|
4,337 |
|
| Net Loss |
$ |
(16,734 |
) |
|
$ |
(28,346 |
) |
|
$ |
(41,234 |
) |
|
$ |
(80,616 |
) |
| |
|
|
|
|
|
|
|
| Net loss attributable to
non-controlling interests |
|
(11,595 |
) |
|
|
(20,014 |
) |
|
|
(28,835 |
) |
|
|
(57,587 |
) |
| Net loss attributable
to Rush Street Interactive, Inc. |
$ |
(5,139 |
) |
|
$ |
(8,332 |
) |
|
$ |
(12,399 |
) |
|
$ |
(23,029 |
) |
| |
|
|
|
|
|
|
|
| Net loss per common share
attributable to Rush Street Interactive, Inc. – basic and
diluted |
$ |
(0.08 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.37 |
) |
| Weighted average common shares
outstanding – basic and diluted |
|
67,389,454 |
|
|
|
63,976,146 |
|
|
|
66,330,641 |
|
|
|
62,889,746 |
|
|
Rush Street Interactive, Inc. |
|
Condensed Consolidated Statements of Comprehensive
Loss |
|
(Unaudited and in thousands) |
| |
| |
Three Months Ended June
30, |
|
Six Months Ended June 30, |
| |
2023 |
|
2022 |
|
2023 |
|
2022 |
| |
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
Net loss |
$ |
(16,734 |
) |
|
$ |
(28,346 |
) |
|
$ |
(41,234 |
) |
|
$ |
(80,616 |
) |
| |
|
|
|
|
|
|
|
| Other comprehensive
loss |
|
|
|
|
|
|
|
| Foreign currency translation
adjustment |
|
1,626 |
|
|
|
(1,923 |
) |
|
|
1,970 |
|
|
|
(409 |
) |
| Comprehensive
loss |
$ |
(15,108 |
) |
|
$ |
(30,269 |
) |
|
$ |
(39,264 |
) |
|
$ |
(81,025 |
) |
| |
|
|
|
|
|
|
|
| Comprehensive loss
attributable to non-controlling interests |
|
(10,463 |
) |
|
|
(21,378 |
) |
|
|
(27,460 |
) |
|
|
(57,863 |
) |
| Comprehensive loss
attributable to Rush Street Interactive, Inc. |
$ |
(4,645 |
) |
|
$ |
(8,891 |
) |
|
$ |
(11,804 |
) |
|
$ |
(23,162 |
) |
|
Rush Street Interactive, Inc. |
|
Reconciliations of GAAP to Non-GAAP Financial
Measures |
|
(Unaudited and in thousands) |
| |
| Adjusted
EBITDA: |
| |
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| ($ in
thousands) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Net loss |
$ |
(16,734 |
) |
|
$ |
(28,346 |
) |
|
$ |
(41,234 |
) |
|
$ |
(80,616 |
) |
| |
|
|
|
|
|
|
|
| Interest (income) expense,
net |
|
(288 |
) |
|
|
223 |
|
|
|
(668 |
) |
|
|
445 |
|
| Income tax expense |
|
2,720 |
|
|
|
2,335 |
|
|
|
5,520 |
|
|
|
4,337 |
|
| Depreciation and
amortization |
|
7,988 |
|
|
|
3,290 |
|
|
|
13,743 |
|
|
|
6,027 |
|
| Share-based compensation
expense |
|
7,518 |
|
|
|
3,880 |
|
|
|
15,193 |
|
|
|
7,817 |
|
| Adjusted
EBITDA |
$ |
1,204 |
|
|
$ |
(18,618 |
) |
|
$ |
(7,446 |
) |
|
$ |
(61,990 |
) |
Adjusted Operating Costs and
Expenses:
| |
Three Months Ended June
30, |
|
Six Months Ended June
30, |
| |
2023 |
|
2022 |
|
2023 |
|
2022 |
| GAAP operating costs
and expenses: |
|
|
|
|
|
|
|
|
Costs of revenue |
$ |
109,853 |
|
|
$ |
104,882 |
|
|
$ |
217,007 |
|
|
$ |
204,740 |
|
| Advertising and
promotions |
|
40,965 |
|
|
|
44,742 |
|
|
|
90,905 |
|
|
|
111,591 |
|
| General administration and
other |
|
20,558 |
|
|
|
16,610 |
|
|
|
42,150 |
|
|
|
32,150 |
|
| Depreciation and
amortization |
|
7,988 |
|
|
|
3,290 |
|
|
|
13,743 |
|
|
|
6,027 |
|
| Total operating costs
and expenses |
$ |
179,364 |
|
|
$ |
169,524 |
|
|
$ |
363,805 |
|
|
$ |
354,508 |
|
| |
|
|
|
|
|
|
|
| Non-GAAP operating
cost and expense adjustments: |
|
|
|
|
|
|
|
| Costs of revenue1 |
$ |
(269 |
) |
|
$ |
(246 |
) |
|
$ |
(526 |
) |
|
$ |
(490 |
) |
| Advertising and
promotions1 |
|
(559 |
) |
|
|
(511 |
) |
|
|
(1,095 |
) |
|
|
(1,016 |
) |
| General administration and
other1 |
|
(6,690 |
) |
|
|
(3,123 |
) |
|
|
(13,572 |
) |
|
|
(6,311 |
) |
| Depreciation and
amortization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Total non-GAAP
operating cost and expense adjustments |
$ |
(7,518 |
) |
|
$ |
(3,880 |
) |
|
$ |
(15,193 |
) |
|
$ |
(7,817 |
) |
| |
|
|
|
|
|
|
|
| Adjusted operating
costs and expenses: |
|
|
|
|
|
|
|
| Costs of revenue |
$ |
109,584 |
|
|
$ |
104,636 |
|
|
$ |
216,481 |
|
|
$ |
204,250 |
|
| Advertising and
promotions |
|
40,406 |
|
|
|
44,231 |
|
|
|
89,810 |
|
|
|
110,575 |
|
| General administration and
other |
|
13,868 |
|
|
|
13,487 |
|
|
|
28,578 |
|
|
|
25,839 |
|
| Depreciation and
amortization |
|
7,988 |
|
|
|
3,290 |
|
|
|
13,743 |
|
|
|
6,027 |
|
| Total adjusted
operating costs and expenses |
$ |
171,846 |
|
|
$ |
165,644 |
|
|
$ |
348,612 |
|
|
$ |
346,691 |
|
- Non-GAAP Operating Costs and
Expense Adjustments include Share-based compensation expense.
|
Rush Street Interactive, Inc. |
|
Reconciliations of GAAP to Non-GAAP Financial
Measures |
|
(Unaudited and in thousands, except share and per share data) |
| |
| Adjusted
Net Loss, Adjusted Weighted Average Common Shares Outstanding and
Adjusted Net Loss Per Share: |
| |
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| |
2023 |
|
2022 |
|
2023 |
|
2022 |
| Adjusted Net
Loss |
|
|
|
|
|
|
|
|
Net loss attributable to Rush Street Interactive, Inc. –
diluted |
$ |
(5,139 |
) |
|
$ |
(8,332 |
) |
|
$ |
(12,399 |
) |
|
$ |
(23,029 |
) |
| Adjustments: |
|
|
|
|
|
|
|
|
Net loss attributable to non-controlling interests |
|
(11,595 |
) |
|
|
(20,014 |
) |
|
|
(28,835 |
) |
|
|
(57,587 |
) |
|
Share-based compensation expense |
|
7,518 |
|
|
|
3,880 |
|
|
|
15,193 |
|
|
|
7,817 |
|
| Adjusted Net
Loss |
$ |
(9,216 |
) |
|
$ |
(24,466 |
) |
|
$ |
(26,041 |
) |
|
$ |
(72,799 |
) |
| |
|
|
|
|
|
|
|
| Adjusted Weighted
Average Common Shares Outstanding |
|
|
|
|
|
|
|
| Weighted average common shares
outstanding – diluted |
|
67,389,454 |
|
|
|
63,976,146 |
|
|
|
66,330,641 |
|
|
|
62,889,746 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
Conversion of weighted average RSILP Units to Class A Common
Shares |
|
154,453,141 |
|
|
|
156,004,353 |
|
|
|
155,150,489 |
|
|
|
157,011,313 |
|
| Adjusted Weighted
Average Common Shares Outstanding |
|
221,842,595 |
|
|
|
219,980,499 |
|
|
|
221,481,130 |
|
|
|
219,901,059 |
|
| |
|
|
|
|
|
|
|
| Net loss per common share
attributable to Rush Street Interactive, Inc. – basic and
diluted: |
$ |
(0.08 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.37 |
) |
| Adjusted Net Loss per
Share – basic and diluted |
$ |
(0.04 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.33 |
) |
Rush Street Interactive (NYSE:RSI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Rush Street Interactive (NYSE:RSI)
Historical Stock Chart
From Apr 2023 to Apr 2024
