Rush Street’s Q1 Report Highlights Improved Revenue and Reduction in Losses

Rush Street Interactive (RSI), a leading American online casino and sports betting company, has published its quarterly report for the period ended March 31. The company reported a significant increase in revenue and significantly narrowed its losses.

For context, Rush Street reported Q1 revenue of $217 million, up 34% year-on-year from the $162.4 million reported a year ago. Additionally, the operator was able to decrease its net loss from $24.5 million in Q1 2023 to only $2.2 million in Q1 2024.

Furthermore, RSI highlighted adjusted EBITDA of $17.1 million for the period. This figure far exceeded the $8.7 million adjusted EBITDA loss in Q1 2023 and represents an improvement of $25.8 million.

In addition, the gambling company managed to reduce its advertising and promotions expenses from $49.4 million in Q1 2023 to $37.8 million in Q1 2024.

Additional highlights included a 20% year-on-year increase in monthly active users in the US and Canada to 176,000. On average, customers in this region spent $355 per month.

The number of monthly active users in Latin America, on the other hand, stood at 224,000, up 72% year-on-year. The average customer spending in this region stood at $43.

RSI ended the quarter with $191 million in unrestricted cash and cash equivalents.

The company also published its FY 2024 guidance, saying that it expects revenue of $810-860 million and adjusted EBITDA of $50-60 million. The midpoints of these figures would represent increases of 21% and 573% respectively.

CEO Schwartz Is Pleased with the Results

RSI’s CEO, Richard Schwartz, commented on the matter, saying that his team is “extremely pleased” with the record-breaking quarterly results across the iGaming and sports betting segments.

Our team is proud to have achieved these results, which stemmed from our long-standing, unwavering commitment to prioritize the quality of our product and customer experience.

Richard Schwartz, CEO, RSI

He also praised the results in Delaware where Rush Street is the only iGaming company. For now, the CEO remains convinced that Delaware’s monopoly will remain unchallenged.

Schwartz added that his team is looking forward to scaling RSI, driving further growth and delivering more shareholder value. To that end, Rush Street will evaluate a launch in additional markets, such as Peru and potentially Brazil.

In the meantime, Rush Street will continue to develop in-house games and engage players with proprietary content.

Schwartz concluded that he is unable to confirm the reported merger talks with DraftKings but vaguely said that his team will “continue to evaluate all opportunities.”