RSI updates revenue guidance for 2021 and posts a strong Q1 2021 that marks a significant increase compared to 2020’s results.
Rush Street Interactive Ends Record Q1 2021
Rush Street Interactive (RSI) has published its financial results for the first quarter of the year ended on March 31, 2021. The latest number signal strength in the company’s operations despite the pandemic as RSI continues to reap the fruits of its focus on online gaming and betting.
Revenue in Q1 2021 swung up by 218% year-over-year, reaching $111.8 million in the quarter compared to $35.2 million for the same period a year earlier. Net loss stood at $76,000 according to the official numbers, and adjusted EBITDA hit $15.1 million.
The company detailed its advertising and promotions expense which stood at $40.5 million or 36% of the revenue during the quarter. Rush Street Interactive spent a considerable amount on promoting its products and brands compared to the same period last year when it only committed $8.5 million. The latest increase in advertising expenditure correlates directly to the company’s market growth.
Reporting the results as of March 31, 2021, RSI had $363 million in unrestricted cash and cash equivalents, giving it a strong base of operation for the next quarter. Commenting on the results, RSI CEO Greg Carlin said that the company was excited at the Q1 2021 results and noted that several important launches happened during the period, citing the casino and sportsbook rollout in Michigan and sportsbook launch in Virginia.
Outlining Revenue Guidance for 2021
“We are also pleased by our quarter-on-quarter growth, underpinned by our strong and stable casino results,” Carlin noted. According to him, Rush Street continues to enjoy a solid momentum brought on by the launch of its online casino in West Virginia in April, and the company presently operates in the four largest markets for iGaming products in the United States.
Market spend been regarded as another milestone for the company, which has been interested in spreading the word out while still driving continued strong growth in revenue and MAUs, Carlin added.
Buoyant on the latest results, the company is looking to secure between $440 million and $480 million in revenues by December 31, 2021. This is an improvement on the previous guidance that placed revenue between $420 million and $460 million, or an estimated 65% year-over-year increase compared to the $278.5 million revenues for 2020.
To achieve these goals, RSI would need to make sure that it launches in all predicted jurisdictions as well as see all professional sports and college events realized according to their stated schedule.