Rush Street Interactive revenue jumps 21% in Q1 2022 as losses deepen

Rush Street Interactive (RSI) has reported a 21% year-on-year jump in its revenue for the first quarter of 2022, with revenue rising to $134.9m.

Releasing its financial results for the period, the BetRivers and PlaySugarHouse operator reported net losses of $52.3m, a substantial increase when compared to a Q1 2021 net loss of just $0.1m.

In tandem, adjusted EBITDA losses also deepened during Q1 2022 to $43.4m, up from a much lower figure of $15.4m 12 months prior.

RSI’s adjusted advertising expenditure jumped substantially during Q1 by 64% year on year to $66.3m, thanks in part to successive launches across five new markets including New York and Ontario.

RSI’s real-money active user numbers (MAUs) also increased during Q1, rising 32% year on year to over 150,000 players and an average revenue per MAU of $265 over the quarter.

The operator reported an unrestricted cash and cash equivalents on its balance sheet of $232.2m, with no outstanding debts.

As a result of its revenue gains, RSI has increased its full-year 2022 guidance to between $600m and $650m from a prior guidance figure of between $580m and $630m.

At the midpoint of the range, revenue of $625m represents 28% year-over-year growth when compared to $488m of revenue for 2021.

Rush Street had a busy Q1 period, launching in New York, Louisiana, and Ontario, as well as expanding its content and brand ambassador portfolio with a number of new partners, including New York broadcaster Mike Francesa and the New Orleans Pelicans.

RSI CEO Richard Schwartz highlighted the quarter as a period of strengthening for the operator, despite the deepening losses in its adjusted EBITDA and net losses.

“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,” Schwartz said.

“We grew MAUs sequentially at our fastest pace in six quarters and experience shows that these players build significant value over time.”

Alluding to RSI’s strategy, Schwartz continued: “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 $15m, 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,” he added.