Rush Street Interactive (RSI) has revealed its financial performance for the first quarter ended March 31, showcasing a remarkable revenue growth of 34 percent. The company recorded $217.4 million in revenue, a significant increase from the $162.4 million reported in the same period last year. This substantial growth in revenue marks a new quarterly record for the company.
The net loss for the quarter also showed considerable improvement, narrowing to $2.2 million from $24.5 million in Q1 2023. This reduction in net loss underscores RSI’s progress towards financial stability. Additionally, the company’s Adjusted EBITDA reached $17.1 million, a notable enhancement compared to previous quarters.
CEO’s Statement
Richard Schwartz, CEO of RSI, expressed his satisfaction with the company’s performance: “We are extremely pleased with our record first quarter results achieving company quarterly record Revenues and Adjusted EBITDA of $217m and $17m, respectively. This was accomplished by growing both our iCasino and Online Sports businesses by over 35% year-over-year, in large part by acquiring new players more efficiently while simultaneously increasing the number and value of our users. 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.”
Growth Drivers
The impressive financial results were driven by several key factors. Firstly, both the iCasino and Online Sports businesses experienced substantial growth, each expanding by over 35% year-over-year. This growth was primarily due to more efficient acquisition of new players, alongside an increase in both the number and value of users.
Richard Schwartz highlighted the importance of these achievements: “We are very excited about the opportunity to continue to scale the business and drive growth on the back of our current momentum, which includes increasing our Adjusted EBITDA guidance by 38% at the midpoint. With this growth and scale comes improving earnings and free cash flow.”
Strategic Initiatives and Future Outlook
RSI remains committed to scaling its business and driving sustained growth. The company has increased its Adjusted EBITDA guidance by 38% at the midpoint, reflecting its confidence in continued financial improvement. Schwartz emphasized the company’s strategic focus: “Looking forward, we remain energized in our view that the team is primed to continue executing on our strategy and delivering value to shareholders.”
Key Appointments and Partnerships
In line with its growth strategy, RSI has recently appointed Brian Sapp to the newly created role of Chief Marketing Officer (CMO). Sapp, who reports directly to CEO Richard Schwartz, will spearhead the company’s marketing efforts, aiming to further enhance player acquisition and retention.
Additionally, RSI has renewed its exclusive multi-year agreement with renowned New York sports broadcaster Mike Francesa. Francesa will continue to provide network and social media content, contributing to RSI’s brand visibility and engagement with sports enthusiasts.
Rush Street Interactive’s first-quarter financial results highlight its strong performance and strategic growth initiatives. The company’s ability to achieve record revenues and significantly reduce net losses demonstrates its effective business model and operational efficiency. With a focus on expanding its iCasino and Online Sports businesses, coupled with key appointments and partnerships, RSI is well-positioned for continued success and value creation for its shareholders.