RSI Posts Q2 2023 Results, Beats Wall Street Consensus

Rush Street Interactive, a market leader in online casino and sports betting, has defied Wall Street expectations by posting stronger financial results in the second quarter than expected.

The company achieved a revenue of $165.1 million, which was a 15% gain in Q2 2022, and managed to pare down its loss to $16.7 million, from $28.3 million a year earlier. The Rush Street Interactive results are consistent with the Q1 2023 performance which also showed resilience and growth on the part of the company.  

Rush Street Interactive Defies Wall Street Expectations

Wall Street took notice and said that the company promised a solid return on investment for those who had invested in the company. Overall, Rush Street Interactive emerged with $1.2 million in ROI in the second quarter of the year.

The company’s chief executive, Richard Schwartz, was similarly excited with these developments and he said that it was all owing to the company’s strong execution of internal planning and strategies. Schwartz said that the company was pleased with its performance, and also noted that it had beaten Wall Street forecasts.

Meanwhile, Rush Street Interactive has been able to further establish itself as one of the top five operators in the country. To help understand the numbers, the company gave the word to CFO Kyle Sauers who walked investors and the public through the finances. Sports betting markets still weren’t the most profitable, but the company emerged victorious in all but one – New York.

According to Sauers, the hold percentages were meaningful – the word he used to describe the metric, at least when it concerned sports betting. Sports betting saw an increase in baseball wagers, which has prompted the company to work harder on introducing parlay and props bets for events such as Major League Baseball. Schwartz added:

We put a lot of effort into surfacing the right type of bets for the right type of players. We’re going to be highlighting a beautiful new feature for NFL season.

RSI CEO Richard Schwartz

Meanwhile, iGaming hold percentages were in line with what the company had predicted, Sauers explained. Sauers also expects the company’s revenue at the end of the year to be anything between $650 million and $690 million, a significant achievement over the long term.

No Reason for Overexcitement as RSI Builds Methodically

However, Sauer is not too quick to draw rash conclusions either.  Although he sees a reason why the third quarter of the year may end up profitable for the company, he has cautioned that the fourth one will most likely be slowing down. Meanwhile, Rush Street Interactive is not slowing down when it comes to expansion.

The company is actively looking into the “legislative front” of at least several states, including Indiana, Illinois, and New York, where it wants to deploy iGaming solutions when and if possible. However, these states may not legalize their iGaming industries as quickly as hoped for, and RSI may need to turn its gaze elsewhere – to Maryland, which seems to be far more likely to be first.

All in all, Schwartz assured that the company will continue to execute its strategy and strive towards profitability.