RSI Raise Full-Year Revenue Outlook After Solid Q3

After the company lauded its ‘solid execution and financial discipline’ during Q3 trading, Rush Street Interactive (RSI) increased its full-year revenue outlook by 20 percent.

RSI noted that Q3 sales amounted to $78.2 million up a substantial 368.2 percent from 2019’s $16.7 million, when it released its financial results for the three-month period ended 30 September.

RSI Chief Executive Officer Greg Carlin said: “Solid execution and financial discipline helped drive our third-quarter success. During our third quarter, we grew revenues 370 per cent year-over-year with an 81 per cent increase in marketing spend during the same period.

“As we move toward completing a transformational year for RSI, we have built a strong technological and operational foundation that we expect will continue to serve us well as we expand into new markets.

“We are excited to be on the path to becoming a publicly listed company and expect that our customer acquisition strategy and growing market share will create sustainable long-term value for our shareholders.”

Adjusted earnings reached $9.9m for the year, up from a $1.3m loss recorded in 2019. Meanwhile the number of active real-money users increased dramatically, increasing by 135 percent year-on-year and 87 percent quarter-on-quarter, respectively.

The company, which entered into a business merger agreement with dMY Technology Group that will lead to a NYSE public listing, also saw its loss grow from $1.6 million to $28.1 million.

Richard Schwartz, RSI’s President, added: “Our third-quarter results demonstrate RSI’s commitment to excellence and validates our focus on player engagement and building a best-in-class technology stack, which have enabled us to attract and retain a loyal and diverse user base.

“We have maintained the number-one online casino share in the US for the second straight quarter, according to Eilers & Krejcik. The discipline in how we bring new players onto the BetRivers.com and PlaySugarHouse.com platforms, and retain existing players, is the hallmark of our approach and will remain core to the company as we continue to expand and enhance our product offerings.”

RSI praised its latest collaborations with five-time Stanley Cup champions Pittsburgh Penguins, Jerome Bettis and TopGolf among its Q3 highlights, having also collaborated with IMG Arena to debut the first UFC Event Centre ever.

RSI estimated that full-year sales would be in the region of $265m-$275m, an improvement of 20 percent from its previous $225m guidance.