Rush Street Interactive (RSI) has released its second-quarter results for 2024, showcasing robust growth across its online casino and sports betting operations. The company has demonstrated remarkable progress, underscoring its strategic decisions and expanding market presence.
Revenue Surge
RSI reported a substantial increase in revenue for the second quarter of 2024, reaching $220.4 million. This figure represents a significant 34% year-on-year growth, highlighting the company’s strong market performance and expanding user base. The revenue growth was driven by increased engagement and strategic market initiatives.
Adjusted EBITDA Growth
The adjusted EBITDA for Q2 2024 was reported at $21.4 million, a dramatic increase from $1.2 million in the same quarter last year. This 1,683% rise illustrates the effectiveness of RSI’s operational strategies and cost management practices, contributing to substantial profitability improvements.
Net Loss Reduction
The net loss for the quarter was reduced to $0.3 million, marking an impressive improvement of approximately 98% compared to the $16.7 million net loss reported in Q2 2023. This reduction underscores the company’s progress in managing expenses and enhancing overall financial health.
Active User Statistics
RSI saw a notable increase in monthly active users across its key markets. In the US and Canada, monthly active users rose by 24% to approximately 164,000. In contrast, Latin America experienced an even more significant growth of 79%, bringing the total to about 288,000 users. This growth reflects RSI’s successful market penetration and user acquisition strategies.
Revenue Per User
The average revenue per monthly active user in the US and Canada was reported at $380 for Q2, while in Latin America, it stood at $37. This disparity highlights the higher monetization potential in the US and Canadian markets compared to Latin America, where the user base is larger but revenue per user is lower.
Advertising and Promotions Expense
Adjusted advertising and promotions expenses were reduced by 10% year-on-year, amounting to $36.3 million. This decrease indicates a more efficient allocation of marketing resources and effective promotional strategies.
Revenue Forecast
In light of its strong Q2 performance, RSI has revised its full-year revenue guidance for 2024. The company now anticipates revenue to fall between $860 million and $900 million, marking a $45 million increase in the midpoint of the previous guidance. This revised forecast reflects RSI’s confidence in maintaining its growth trajectory.
Adjusted EBITDA Forecast
RSI has also updated its full-year adjusted EBITDA guidance, expecting it to range between $64 million and $72 million. This adjustment represents a $13 million increase in the midpoint of the previous guidance, further indicating the company’s enhanced profitability outlook.
CEO’s Remarks
RSI’s CEO, Richard Schwartz, expressed enthusiasm about the company’s performance, stating, “We are thrilled to announce another quarter of record-breaking revenues and adjusted EBITDA. The first half of the year has seen our revenue grow by 34% coupled with a $46 million improvement in Adjusted EBITDA compared to last year.”
Schwartz attributed the results to strategic decisions made over recent years and ongoing efforts to attract and retain players. He emphasized the efficiency of RSI’s operations and the balanced growth across iCasino and online sports segments. Notably, the company has experienced its highest revenue growth in over two years in its established markets, such as Pennsylvania, New Jersey, and Michigan, and continued success in Delaware.
Market Expansion
The recent launch of the RushBet platform in Peru underscores RSI’s commitment to expanding its footprint in Latin America. This move is part of RSI’s broader strategy to explore new markets and leverage growth opportunities across the Americas.
RSI remains focused on innovation, growth, and delivering value to its customers. The company’s strategic initiatives and market expansion efforts position it well to become a leader in online gaming across the Americas.
Rush Street Interactive’s Q2 2024 results reflect a period of exceptional growth and strategic success. With significant increases in revenue, adjusted EBITDA, and improvements in net loss, RSI demonstrates its ability to capitalize on market opportunities and drive sustainable growth. The company’s updated full-year guidance and ongoing market expansion efforts further solidify its position in the online casino and sports betting industry.