- First Quarter Revenue of $135 Million, up 21%
Year-over-Year -
- Raising Full Year 2022 Revenue Guidance to
between $600 and $650 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 first quarter ended March
31, 2022.
First Quarter 2022 Financial Highlights
- Revenue was $134.9 million during the first quarter of 2022, an
increase of 21%, compared to $111.8 million during the first
quarter of 2021.
- Net loss was $52.3 million during the first quarter of 2022,
compared to a net loss of $0.1 million during the first quarter of
2021.
- Adjusted EBITDA1 was a loss of $43.4 million during the first
quarter of 2022, compared to an Adjusted EBITDA loss of $15.1
million during the first quarter of 2021.
- Adjusted advertising and promotions expense1 was $66.3 million
during the first quarter of 2022, compared to $40.5 million during
the first quarter of 2021.
- Real-Money Monthly Active Users (“MAUs”) in the United States
for the first quarter of 2022 grew 32% year-over-year to over
150,000 with average revenue per MAU (“ARPMAU”) of $265 during the
first quarter of 2022.
- As of March 31, 2022, unrestricted cash and cash equivalents on
the balance sheet were $232.2 million with no debt
outstanding.
Richard Schwartz, Chief Executive Officer of RSI, said,
“Launching five new markets in seven months with an additional
market set for launch by the end of the second quarter, positions
us well to continue to rapidly expand and diversify the business
with an eye towards profitability. We grew MAUs sequentially at our
fastest pace in six quarters and experience shows that these
players build significant value over time.”
“We remain disciplined in our approach and are balancing
profitability from more developed markets with investments in new
market launches. In fact, excluding the impact of our New York
launch during the first quarter, our Adjusted EBITDA loss is less
than $15 million, demonstrating the growing profitability of our
previously launched markets. Achieving consistent profitability is
our top priority and we expect RSI to be Adjusted EBITDA positive
for the second half of 2023.”
Increasing 2022 Revenue Guidance
RSI expects revenues for the full year ending December 31, 2022
to increase to between $600 million to $650 million, up from its
previous guidance of between $580 and $630 million. At the midpoint
of the range, revenue of $625 million represents 28% year-over-year
growth when compared to $488 million of revenues for 2021.
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 2022 seasons, and (iii) RSI continues to operate in markets
in which it is live today.
Recent Business Highlights
- Launched online sportsbook in New York and in Louisiana.
- Launched online casino and online sportsbook in Ontario, Canada
following the end of the first quarter.
- Crowned Operator of the Year, Social Gaming Operator of the
Year, and Customer Service Operator of the Year at the EGR North
America Awards 2022, winning the latter award for the 3rd year in a
row. The continued recognition for customer service demonstrates
our ongoing commitment to delivering a market leading user
experience.
- Further expanded our Ambassadors and Betting Content Production
during the first quarter with additions of New York sports
broadcasting legend Mike Francesca, Canadian broadcasting icon Dan
O’Toole, retired New York Mets manager Bobby Valentine, and former
Chicago Bull great Joakim Noah.
- Became an official sportsbook partner of the New Orleans
Pelicans, including the rebranding of the new BetRivers Chairman’s
Club.
- Named the first U.S.-based online casino and sports betting
operator to receive RG Check iGaming Accreditation from the
Responsible Gaming Council. This respected designation demonstrates
to both regulatory bodies and customers that RSI prioritizes and
embeds responsible gaming into the core of its operations.
- BetRivers sportsbook mobile app continues to be highly rated
and independently ranked #4 by Eilers & Krejcik out of 41 apps
in the US market.
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 first quarter results and provide commentary on
business performance and its current outlook for 2022. A
question-and-answer session will follow the prepared remarks.
The conference call may be accessed by dialing 1-844-450-0390
for domestic callers or 1-236-714-3032 for international callers.
The conference call access code is 1857599.
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 June 4, 2022.
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 thirteen U.S.
states: Pennsylvania, Illinois, New Jersey, New York, Connecticut,
Michigan, Indiana, Virginia, Colorado, Iowa, West Virginia, Arizona
and Louisiana, as well as in the regulated international markets of
Ontario, Canada and Colombia. 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 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 achieve 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 (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 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 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 or financial
condition, RSI’s strategic plans and focus, anticipated launches 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 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, inflation
rates, 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 Consolidated Condensed Statements of
Comprehensive Loss
(Unaudited and in thousands,
except per share data)
Three Months Ended
March 31,
2022
2021
(Unaudited)
(Unaudited)
Revenue
$
134,938
$
111,820
Operating costs and expenses
Costs of revenue
99,858
79,687
Advertising and promotions
66,849
42,216
General administration and other
15,540
16,564
Depreciation and amortization
2,737
674
Total operating costs and expenses
184,984
139,141
Loss from operations
(50,046
)
(27,321
)
Other income (expenses)
Interest expense, net
(222
)
(13
)
Change in fair value of warrant
liabilities
—
41,802
Change in fair value of earnout interests
liability
—
(13,740
)
Total other income (expenses)
(222
)
28,049
Income (loss) before income
taxes
(50,268
)
728
Income tax expense
2,002
804
Net loss
$
(52,270
)
$
(76
)
Net loss attributable to non-controlling
interests
(37,573
)
(59
)
Net loss attributable to Rush Street
Interactive, Inc.
$
(14,697
)
$
(17
)
Net loss per common share attributable to
Rush Street Interactive, Inc. – basic
$
(0.24
)
$
0.00
Weighted average common shares outstanding
– basic
61,800,359
46,955,262
Net loss per common share attributable to
Rush Street Interactive, Inc. – diluted
$
(0.24
)
$
(0.18
)
Weighted average common shares outstanding
– diluted
61,800,359
53,415,488
Three Months Ended
March 31,
2022
2021
(Unaudited)
(Unaudited)
Net loss
$
(52,270
)
$
(76
)
Other comprehensive income
(loss)
Foreign currency translation
adjustment
1,514
(624
)
Comprehensive loss
$
(50,756
)
$
(700
)
Comprehensive loss attributable to
non-controlling interests
(36,485
)
(540
)
Comprehensive loss attributable to Rush
Street Interactive, Inc.
$
(14,271
)
$
(160
)
Rush Street Interactive,
Inc.
Reconciliations of GAAP to
Non-GAAP Financial Measures
(Unaudited and in thousands)
Adjusted EBITDA:
Three Months Ended
March 31,
($ in thousands)
2022
2021
Net loss
$
(52,270
)
$
(76
)
Interest expense, net
222
13
Income tax expense
2,002
804
Depreciation and amortization
2,737
674
Change in fair value of warrant
liability
—
(41,802
)
Change in fair value of earnout interests
liability
—
13,740
Share-based compensation expense
3,937
11,576
Adjusted EBITDA
$
(43,372
)
$
(15,071
)
Adjusted Operating Costs and
Expenses:
Three Months Ended
March 31,
2022
2021
GAAP operating costs and
expenses:
Costs of revenue
$
99,858
$
79,687
Advertising and promotions
66,849
42,216
General administration and other
15,540
16,564
Depreciation and amortization
2,737
674
Total operating costs and
expenses
$
184,984
$
139,141
Non-GAAP operating cost and expense
adjustments:
Costs of revenue1
$
(244
)
$
(915
)
Advertising and promotions1
(505
)
(1,698
)
General administration and other1
(3,188
)
(8,963
)
Depreciation and amortization
—
—
Total non-GAAP operating cost and
expense adjustments
$
(3,937
)
$
(11,576
)
Adjusted operating costs and
expenses:
Costs of revenue
$
99,614
$
78,772
Advertising and promotions
66,344
40,518
General administration and other
12,352
7,601
Depreciation and amortization
2,737
674
Total adjusted operating costs and
expenses
$
181,047
$
127,565
- Non-GAAP Operating Costs and Expense Adjustments for the three
months ended March 31, 2022 and March 31, 2021 include Share-based
compensation.
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 Ended
March 31,
2022
2021
Adjusted Net Loss
Net loss attributable to Rush Street
Interactive, Inc. – diluted1
$
(14,697
)
$
(9,586
)
Adjustments:
Net loss attributable to non-controlling
interests
(37,573
)
(59
)
Change in fair value of warrant
liabilities attributable to non-controlling interests
—
(32,171
)
Change in fair value of earnout interests
liability
—
13,740
Share-based compensation expense
3,937
11,576
Adjusted Net Loss
$
(48,333
)
$
(16,500
)
Adjusted Weighted Average Common Shares
Outstanding
Weighted average common shares outstanding
– diluted2
61,800,359
53,415,488
Adjustments:
Conversion of weighted average RSILP units
to Class A Common Shares
158,029,461
160,000,000
Adjusted Weighted Average Common Shares
Outstanding
219,829,820
213,415,488
Net loss per common share attributable to
Rush Street Interactive, Inc. – diluted:
$
(0.24
)
$
(0.18
)
Adjusted Net Loss per Share
$
(0.22
)
$
(0.08
)
- Net loss attributable to Rush Street Interactive, Inc. –
diluted for the three months ended March 31, 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 March 31,
2022.
- Weighted average common shares outstanding – diluted for the
three months ended March 31, 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 March 31, 2022.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220504005436/en/
Media: Lisa Johnson (609) 788-8548
lisa@lisajohnsoncommunications.com
Investors: ir@rushstreetinteractive.com
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