Rush Street Interactive, Inc. (RSI), an online gaming and sports betting operator, published its fourth quarter and full-year financial reports. Revenues increased by 27% and 21%, respectively.
Strong revenue growth
RSI contributed to a total revenue of $592.2million for the full year 2022 with $165.5 million in revenue during the last quarter. Comparatively, the Chicago-based gaming company generated revenue of $130.6 millions in Q4 2021, and $488.1 million for the entire year.
Richard Schwartz, chief executive of RSI, commented on the results. He stated that the strong quarter as well as record year results were due to a 95% increase in RSI’s Latin American and North American markets. The company had plans to launch operations after 2020.
Net Loss, Negative Adjusted EBITDA
The net loss of the company in Q4 2022 was $31.1million, which is 18.4% less than the $38.1 million recorded in 2021’s fourth quarter. The quarterly adjusted EBITDA lost $17.3 million, which is 44.6% less than the Q4 2021 adjusted EBITDA loss (31.2 million).
Net loss for the entire year was $134.4million, an increase of 88.9% over $71.1million in the previous year. Full-year adjusted EBITDA was negative $91.8million, an increase of 41% over $65.1 million in 2021.
Schwartz stated that they expect to achieve positive Adjusted EBITDA in the second half 2023. Schwartz also said that they will continue to be selective and prioritize investing in markets with higher returns.
Guidance for Revenue Guidance 2023
RSI used this report to provide revenue guidance for 2023. It expects to generate revenue between $630 million to $700 million. This is based on certain assumptions. These include professional and college sports calendars being intact, company operations in all jurisdictions that it currently operates, and results from new jurisdiction launches.
“Looking ahead, we will continue to work hard on retaining and earning customer loyalty by being kind, thoughtful, providing seamless experiences, and reducing friction wherever possible. Schwartz stated that the company’s proprietary platform and culture was built around a disciplined operating philosophy. This is evident in our results.
Other financial highlights
RSI reported that the adjusted advertising and promotion expenses for the fourth quarter were $63.2 million, compared with $64 million in 2021. However, the total year saw an increase of 16.9%, to $218.4million ($186.9 million in 2021).
In the fourth quarter, the number of real-money monthly users increased proportionally to the year. 22% in Q4 was followed by 29% in full year 2022. This allowed RSI an average revenue per month active user of $327 for the fourth quarter and $315 for the entire year. The year-to-date result is down by 9%.
RSI’s cash balance at the end of the reporting period, December 31, 2022 was $180 million in cash and cash equivalents.
