Rush Street Interactive has lifted its full-year outlook as the online gaming and sports entertainment company expresses its delight with its first-quarter results.
Revenue increased 218 percent to $111.8 million in the quarter ending March 31, 2021 (Q4 2020: $35.2 million), with real money active users in the US up 166 percent year over year and 20 percent sequentially, and average revenue per monthly active user finishing at $302 compared to $341 in the previous quarter.
Adjusted EBITDA swung from $1.1 million in the first quarter of 2020 to a loss of $15.1 million in the first quarter of 2021, with advertisement and marketing spending at $40.5 million, or 36 percent of sales, compared to $8.5 million a year earlier.
Strong first quarter
Greg Carlin, CEO of RSI said: “We are excited about our strong first quarter results, during which we launched online casino and sportsbook in Michigan and online sportsbook in Virginia, and delivered revenue growth of 218 per cent over last year’s first quarter. We are also pleased by our quarter-on-quarter growth, underpinned by our strong and stable casino results.
“We continue to have solid momentum as we launched online casino in West Virginia in April, and are now live in the four largest US online casino markets which we expect to drive significant profitability over the long term.
“Additionally, due to our strong cash position, we were able to increase our marketing spend in 2021. Short average payback periods of only six months provide confidence in our ability to effectively increase marketing spend while driving continued strong growth in revenue and MAUs. As a result, we are increasing our 2021 revenue guidance.”
Furthermore, RSI now expects revenue for the full year ending December 31, 2021 to be between $440 million and $480 million, up from $420 million to $460 million in its previous guidance.
Revenue of $460 million, at the midpoint of the range, will mark a 65 percent year-from-year increase over $278.5 million in 2020.
According to the company, the increase reflects good Q1 2021 results as well as expected growth in newly opened and established markets as a result of increased marketing spend financed with cash on hand.