Rush Street Interactive (RSI) announced another good quarter this week. Revenues totaled $232 million, up 37% year on year. Adjusted EBITDA increased even more year on year, rising from $4.1 million to $23.4 million. Both numbers represent the company’s quarterly records.
“This success is a result of our distinctive goods and engaging user experience, which nurtures client loyalty while driving growth and profitability. Furthermore, our smart marketing spending has greatly boosted our bottom line. In light of these results, we are boosting our revenue guidance for 2024 by 3% and EBITDA guidance by 24% at the midpoint,” stated RSI CEO Richard Schwartz during the company’s earnings call on Thursday.
Schwartz went on to say that the company currently has 168,000 monthly active users (MAU) and an average revenue per monthly active user (ARPMAU) of $388.
Not only are their numbers increasing, but the cost of acquisition is decreasing. Schwartz highlighted that, while promotional and advertising expenses increased from $34.1 to $38.6 million year over year, the average cost per acquisition decreased by one-third.
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Loterj filed a lawsuit to suspend the SPA list of approved operators in Brazil.During the previous earnings call, Schwartz stated that the company had canceled some affiliate agreements in order to have the option of working with other acquisition channels as they attempted to better optimize marketing expenditure.
Schwartz did not go into great detail about success market by market, but he did say that the regional brand’s core markets were no longer as important for revenue as they had been previously.
“The percentage of revenue generated from markets outside of Illinois and Pennsylvania is now 62%, up from 52% during the quarter a year ago, easily the highest it’s been since going public,” stated the director.
He did make an exception for one market: Delaware. Rush Street won the RFP for a supplier after the state cancelled its contract with 888. The company began in the state in January and has already outperformed 888.
“Our GGR has already approached $100 million per year, indicating remarkable performance. This run rate is the consequence of nearly five times the prior operator’s run rate in iCasino, as well as our continued success in online sports.”
The corporation announced that they will authorize a $50 million share buyback program.
RSI anticipates revenue of $900-$920 million in 2024, with adjusted EBITDA of around $82-$86 million.
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