Rush Street Interactive continues strong performance as Q3 revenue rises 15%
BetRivers and PlaySugarHouse operator reduces net losses and advertising expenditure while also spurring adjusted EBITDA growth
Rush Street Interactive (RSI) has reported a 15% year-on-year (YOY) increase in its revenue for Q3 2023 to $169.9m, exceeding the $148m generated during the same period of 2022.
Releasing its latest financial update, the BetRivers and PlaySugarHouse operator confirmed a 41% YOY drop in its net losses during Q3 2023, which fell to $13.4m in the period compared to $22.7m in Q3 2022.
RSI’s adjusted EBITDA continued its positive trend started in Q2, with the firm reporting a positive $4.1m, up from a prior Q3 2022 negative loss figure of $12.5m 12 months prior.
The firm’s adjusted advertising and promotional expenditure dipped on a YOY basis, falling from $44.7m in Q3 2022 to $34.1m in Q3 2023.
RSI’s average revenue per monthly active user (ARPMAU) grew to $374 during Q3 2023, rising 8% on a YOY basis.
As of September 30, 2023, RSI had $171m of unrestricted cash and cash equivalents available.
During the quarter, RSI was confirmed by the Delaware Lottery as its new lottery partner, with a launch expected in the First State later this winter.
The firm also marked the new NFL season by debuting a new Prop Central functionality to enhance its sportsbook, with initial results leading to “material increases” in higher-margin player prop bets.
RSI CEO Richard Schwartz was justifiably upbeat in his remarks on the firm’s Q3 financial performance, highlighting focuses on marketing spend and innovation.
“Thanks to our decade-long investment in cutting-edge technology and a customer-centric approach, we’ve positioned ourselves as a top five online operator in the US, with a leading position in igaming and a growing online sports book,” Schwartz said.
“As discerning consumers seek out the best products and user experiences, our third-quarter results affirm our ability to deliver on both counts as we continue to acquire, engage, and retain customers.”
The RSI CEO continued: “With strong revenue growth and more efficient marketing spend, we are proud to report another quarter of increasing quarterly profitability on an adjusted EBITDA basis as well as our expectation to have positive adjusted EBITDA for the full year, underscoring our commitment to sustainable growth and profitability.
“Our focus on innovation and efficiency has elevated our market-leading ROI, enabling us to navigate competitive markets with remarkable success and resilience. As we look ahead to new opportunities in North America and Latin America, we remain optimistic and excited about the path that lies ahead,” he concluded.
RSI has increased its 2023 revenue target to between $665m and $685m following its Q3 results, compared to previous guidance numbers.
At the midpoint of the range, revenue of $675m represents 14% YOY growth when compared to $592m of revenues for 2022.
Despite the positive financial results, RSI’s share price has continued to decline, with shares falling by 22% in the last month to trade at just $3.54 per share in today’s trading (November 2).