Rush Street Interactive stated in its most recent financial results that it expects to achieve positive adjusted EBITDA for 2023’s second half, following a record-breaking year.
Richard Schwartz CEO of the operator, announced a strong fourth quarter and new highs for the year, thanks to significant growth in North American and Latin American markets.
RSI also released its revenue guidance for 2023, ranging from $630m to $700m.
Record 2022 for RSI
RSI published its Q4 results and reported a 27% increase in revenue year-over-year, to $165.5m (Q4 2020: $130.6m).
Operator reported that operating costs were $193.9m for the quarter, an 15.6 percent increase YoY (2021: $167.6m) and a net loss was $31.1m.
This represents an 18.4% YoY increase (2021: 38.1m), and even though adjusted EBITDA was down $17.3m, it was still a 44.5 percent gain YoY (2021 – $31.2m).
The real-money monthly active users in Canada and the US were up 22 percent YoY and the average revenue per MAU stood at $327.
RSI opened two new offices in Colombia during the quarter. It also improved its technology platform, which includes player segmentations, to personalize casino experiences.
Operator has also launched a new squares-based game. It has also launched its online sportsbook in Maryland and Ohio on New Year’s Day 2023. The operator has also been awarded Responsible Gambling Council‘s RG Check accreditation.
RSI reported a 21% YoY increase in revenue to $592.2m (from $488.1m in 2021). This was due to significant growth in North America, Latin America and Latin America markets.
According to the operator, revenue in North American and Latin American markets opened after 2020 has increased by 95%.
Operating costs rose 23.1 percent YoY to $717m (from $582.4m in 2021), while net loss increased by 88.9% YoY, to $134.3m (from $71.1m in 2021). Adjusted EBITDA for the Year was $91.8m. This is a 40.9 percentage increase YoY (from $65.1m in 2121).
The MAUs in the US and Canada increased by 29 percent YoY, with an ARPMAU at $315. This was a decrease of 9 percentage points YoY.
Schwartz stated: “We are proud that we have reported another strong quarter, record results for the Year, and this was aided by 95 percent annual growth in our Latin American market and new North American markets after 2020.”
2023 Outlook
RSI’s guidance for 2023 has been published. It states that revenue for the year will be between $630m to $700m. The midpoint of this range, $665m, represents a 12 percent increase over 2022’s $592m.
Schwartz stated that the operator expected to have a positive adjusted EBITDA in the second half of this year, as long as it continues to invest selectively in the market.
The CEO stated that they expect to achieve positive Adjusted EBITDA in the second half 2023. They also continue to be selective, focusing on markets with higher returns.
“We will keep our eyes on the future and continue to work towards gaining and maintaining customer loyalty by treating customers well, being thoughtful, creating seamless experiences, and reducing friction wherever possible.
“We have built our platform and culture around a disciplined operating principle, which is evident in our results.”
