Rush Street Interactive, Inc. (RSI), a frontrunner іn the online casino and sports betting industry across the Americas, disclosed its financial results for the third quarter ending September 30, 2024. The company achieved remarkable financial milestones, with revenue soaring tо $232.1 million, marking a 37% increase from $169.9 million іn the same quarter оf the previous year. This growth іs a testament tо the company’s robust business strategies and operational excellence.
Significant Turnaround In Profitability
The period was particularly notable as RSI reported a net income of $3.2 million, a substantial recovery from a net loss of $13.4 million during the third quarter of 2023. This turnaround is indicative of the company’s successful cost management and enhanced revenue generation tactics. Additionally, adjusted EBITDA saw a significant rise to $23.4 million, up from $4.1 million in the third quarter of the previous year, reflecting more than a fivefold increase.
Marketing investments continued to grow, with adjusted advertising and promotions expenses reaching $38.6 million, a 13% increase year-over-year. This strategic spending has been crucial in driving the company’s user acquisition and retention efforts. Monthly Active Users (MAUs) in the United States and Canada grew by 28% to approximately 168,000, while MAUs in Latin America, including Mexico, saw a remarkable 122% increase to about 329,000.
On the financial management front, RSI announced a significant development with the authorization by its Board оf Directors tо repurchase up tо $50 million оf its Class A common stock. This initiative underscores the company’s confidence іn its financial health and its commitment tо delivering value tо its shareholders. As оf the end оf the quarter, unrestricted cash and cash equivalents stood at $216 million, up from $194 million at the end оf June 2024, further solidifying its financial base.
CEO Comments On Record Results And Future Outlook
RSI’s Chief Executive Officer, Richard Schwartz, commented on the results in the company’s press release: “We are excited to report that we have achieved another quarter of exceptional performance, setting new quarterly records in both revenue and adjusted EBITDA. Our third quarter revenue surged by 37% year-over-year, and our adjusted EBITDA increased more than fivefold from the same period last year. These record results highlight the effectiveness of our strategic initiatives and ability to execute. Our focus on innovation to attract and retain high-value players continues to drive significant growth and profitability.”
He further noted, “Our strategy has yielded broad-based growth and success across all of our geographies and products. We’ve accelerated player growth for another consecutive quarter and acquired significantly more players with much greater marketing efficiency, all the while increasing our player values. This combination sets us up well for continued strong performance.”
Looking ahead, RSI provided updated guidance for the full year ending December 31, 2024, with expected revenue to be between $900 and $920 million, reflecting a mid-point increase of $30 million from previous forecasts. The company also anticipates adjusted EBITDA to be between $82 and $86 million, indicating robust year-over-year growth.