- Third Quarter Revenue of
- Increased Adjusted EBITDA Profitability for the
- Strong Performance Leads to Expectations to be Adjusted EBITDA Positive for Full Year 2023 -
- Raising Full Year 2023 Revenue Guidance Midpoint with a
Third Quarter 2023 Highlights
- Revenue was
$169.9 million during the third quarter of 2023, an increase of 15%, compared to$148.0 million during the third quarter of 2022. - Net loss was
$13.4 million during the third quarter of 2023, compared to a net loss of$22.7 million during the third quarter of 2022. - Adjusted EBITDA1 was a positive
$4.1 million during the third quarter of 2023, compared to an Adjusted EBITDA loss of$12.5 million during the third quarter of 2022. - Adjusted advertising and promotions expense1 was
$34.1 million during the third quarter of 2023, compared to$44.7 million during the third quarter of 2022. - Average Revenue per Monthly Active User (“ARPMAU”) in
the United States andCanada was$374 during the third quarter of 2023, up 8% year-over-year. - As of
September 30, 2023 , RSI had$171 million of unrestricted cash and cash equivalents. - Selected by the
Delaware Lottery as its exclusive online gaming provider with expected launch in early winter. - Launched unique Prop Central functionality with initial sportsbook results leading to material increases in higher-margin player prop bets.
“With strong revenue growth and more efficient marketing spend, we are proud to report another quarter of increasing quarterly profitability on an adjusted EBITDA basis as well as our expectation to have positive Adjusted EBITDA for the full year, underscoring our commitment to sustainable growth and profitability. Our focus on innovation and efficiency has elevated our market-leading ROI enabling us to navigate competitive markets with remarkable success and resilience. As we look ahead to new opportunities in
______________________________
1 This is a non-GAAP financial measure. Please see “Non-GAAP Financial Measures” for more information about this non-GAAP financial measure and “Reconciliations of GAAP to Non-GAAP Financial Measures” for a reconciliation of the most comparable measure calculated in accordance with GAAP to this non-GAAP financial measure.
Guidance
RSI expects revenue for the full year ending
This range is based on certain assumptions, including that (i) only operations in live jurisdictions as of today’s date are included, and (ii) RSI continues to operate in markets in which it is live today, except for
Earnings Conference Call and Webcast Details
RSI will host a conference call and audio webcast today at
The conference call may be accessed by dialing 1-844-200-6205 (Toll Free) or 1-646-904-5544 (Local) or, for international callers, 1-929-526-1599. The conference call access code is 982260.
A live audio webcast of the earnings conference call may be accessed on RSI’s website at ir.rushstreetinteractive.com, along with a copy of this press release and an investor slide presentation. The audio webcast and investor slide presentation will be available on RSI’s investor relations website until at least
About
RSI is a trusted online gaming and sports entertainment company focused on markets in
Non-GAAP Financial Measures
In addition to providing financial measurements based on accounting principles generally accepted in
RSI defines Adjusted EBITDA as net income (loss) before interest, income taxes, depreciation and amortization, share-based compensation, adjustments for certain one-time or non-recurring items and other adjustments. Adjusted EBITDA excludes certain expenses that are required in accordance with GAAP because certain expenses are either non-cash (i.e., depreciation and amortization, and share-based compensation) or are not related to our underlying business performance (i.e., interest income or expense).
RSI defines Adjusted Operating Costs and Expenses as RSI’s GAAP operating costs and expenses adjusted to exclude the impacts of share-based compensation, certain one-time or non-recurring items and other adjustments. Adjusted Operating Costs and Expenses excludes certain expenses that are required in accordance with GAAP because certain expenses are either non-cash (i.e., share-based compensation) or are not related to our underlying business performance.
RSI defines Adjusted Net Loss Per Share as Adjusted Net Loss divided by Adjusted Weighted Average Common Shares Outstanding. Adjusted Net Loss is defined as net loss attributable to
RSI includes these non-GAAP financial measures because management uses them to evaluate RSI’s core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. Management believes that these non-GAAP financial measures provide investors with useful information on RSI’s past financial and operating performance, enable comparison of financial results from period-to-period where certain items may vary independent of business performance, and allow for greater transparency with respect to metrics used by RSI’s management in operating our business. Management also believes these non-GAAP financial measures are useful in evaluating our operating performance compared to that of other companies in our industry, as these metrics generally eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance.
Key Metrics
RSI provides certain key metrics, including Monthly Active Users (“MAUs”) and ARPMAU, in this press release. RSI defines MAUs as the number of unique users per month who have placed at least one real-money bet across one or more of our online casino or online sports betting offerings, and it defines ARPMAU as average revenue for the applicable period divided by the average MAUs for the same period.
The numbers RSI uses to calculate MAUs and ARPMAU are based on internal RSI data. While these numbers are based on what RSI believes to be reasonable judgments and estimates of its customer base for the applicable period of measurement, there are inherent challenges in measuring usage and engagement with respect to RSI’s online offerings across its customer base. Such challenges and limitations may also affect RSI’s understanding of certain details of its business. In addition, RSI’s key metrics and related estimates, including the definitions and calculations of the same, may differ from estimates published by third parties or from similarly-titled metrics of its competitors due to differences in operations, offerings, methodology and access to information. RSI regularly reviews, and may adjust its processes for calculating, its internal metrics to improve their accuracy.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. RSI's actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, statements regarding guidance, RSI’s future results of operations, financial condition, cash flows or profitability (whether on a GAAP or non-GAAP basis), currency fluctuations, RSI’s strategic plans and focus, anticipated launches or withdrawals of RSI’s current or new offerings in existing or future jurisdictions, player growth and engagement, product initiatives, outcomes of current or future regulatory developments and the objectives of management for future operations. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside RSI's control and are difficult to predict. Factors that may cause such differences include, without limitation: changes in applicable laws or regulations; RSI’s ability to manage and sustain growth; RSI’s ability to execute its business plan, meet its projections and obtain relevant market access and/or gaming licenses; unanticipated product or service delays; general economic and market conditions impacting the demand for RSI’s products and services; economic and market conditions in the gaming, entertainment and leisure industry in the markets in which RSI operates; the potential adverse effects of general economic conditions, inflation and interest rates and unemployment on RSI’s liquidity, operations and personnel; and other risks and uncertainties indicated from time to time in RSI's filings with the
Media Contacts:
(609) 788-8548
lisa@lisajohnsoncommunications.com
Investor Contact:
ir@rushstreetinteractive.com
Condensed Consolidated Statements of Operations | ||||||||||||||||
(Unaudited and in thousands, except per share data) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Revenue | $ | 169,887 | $ | 148,004 | $ | 497,310 | $ | 426,678 | ||||||||
Operating costs and expenses | ||||||||||||||||
Costs of revenue | 116,159 | 103,321 | 333,166 | 308,061 | ||||||||||||
Advertising and promotions | 34,620 | 45,203 | 125,525 | 156,794 | ||||||||||||
General administration and other | 22,409 | 16,040 | 64,559 | 48,190 | ||||||||||||
Depreciation and amortization | 8,401 | 4,039 | 22,144 | 10,066 | ||||||||||||
Total operating costs and expenses | 181,589 | 168,603 | 545,394 | 523,111 | ||||||||||||
Loss from operations | (11,702 | ) | (20,599 | ) | (48,084 | ) | (96,433 | ) | ||||||||
Other income (expenses) | ||||||||||||||||
Interest income (expense), net | 762 | (219 | ) | 1,430 | (664 | ) | ||||||||||
Loss before income taxes | (10,940 | ) | (20,818 | ) | (46,654 | ) | (97,097 | ) | ||||||||
Income tax expense | 2,426 | 1,839 | 7,946 | 6,176 | ||||||||||||
Net Loss | $ | (13,366 | ) | $ | (22,657 | ) | $ | (54,600 | ) | $ | (103,273 | ) | ||||
Net loss attributable to non-controlling interests | (9,187 | ) | (16,044 | ) | (38,022 | ) | (73,631 | ) | ||||||||
Net loss attributable to | $ | (4,179 | ) | $ | (6,613 | ) | $ | (16,578 | ) | $ | (29,642 | ) | ||||
Net loss per common share attributable to | $ | (0.06 | ) | $ | (0.10 | ) | $ | (0.25 | ) | $ | (0.47 | ) | ||||
Weighted average common shares outstanding – basic and diluted | 69,698,787 | 64,058,437 | 67,465,694 | 63,283,591 |
Condensed Consolidated Statements of Comprehensive Loss | ||||||||||||||||
(Unaudited and in thousands) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Net loss | $ | (13,366 | ) | $ | (22,657 | ) | $ | (54,600 | ) | $ | (103,273 | ) | ||||
Other comprehensive loss | ||||||||||||||||
Foreign currency translation adjustment | 1,495 | (1,368 | ) | 3,465 | (1,777 | ) | ||||||||||
Comprehensive loss | $ | (11,871 | ) | $ | (24,025 | ) | $ | (51,135 | ) | $ | (105,050 | ) | ||||
Comprehensive loss attributable to non-controlling interests | (8,161 | ) | (17,014 | ) | (35,621 | ) | (74,877 | ) | ||||||||
Comprehensive loss attributable to | $ | (3,710 | ) | $ | (7,011 | ) | $ | (15,514 | ) | $ | (30,173 | ) |
Reconciliations of GAAP to Non-GAAP Financial Measures | ||||||||||||||||
(Unaudited and in thousands) | ||||||||||||||||
Adjusted EBITDA: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Net loss | $ | (13,366 | ) | $ | (22,657 | ) | $ | (54,600 | ) | $ | (103,273 | ) | ||||
Interest (income) expense, net | (762 | ) | 219 | (1,430 | ) | 664 | ||||||||||
Income tax expense | 2,426 | 1,839 | 7,946 | 6,176 | ||||||||||||
Depreciation and amortization | 8,401 | 4,039 | 22,144 | 10,066 | ||||||||||||
Share-based compensation expense | 7,402 | 4,084 | 22,595 | 11,901 | ||||||||||||
Adjusted EBITDA | $ | 4,101 | $ | (12,476 | ) | $ | (3,345 | ) | $ | (74,466 | ) |
Adjusted Operating Costs and Expenses:
Three Months Ended | Nine Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
GAAP operating costs and expenses: | ||||||||||||||||
Costs of revenue | $ | 116,159 | $ | 103,321 | $ | 333,166 | $ | 308,061 | ||||||||
Advertising and promotions | 34,620 | 45,203 | 125,525 | 156,794 | ||||||||||||
General administration and other | 22,409 | 16,040 | 64,559 | 48,190 | ||||||||||||
Depreciation and amortization | 8,401 | 4,039 | 22,144 | 10,066 | ||||||||||||
Total operating costs and expenses | $ | 181,589 | $ | 168,603 | $ | 545,394 | $ | 523,111 | ||||||||
Non-GAAP operating cost and expense adjustments: | ||||||||||||||||
Costs of revenue1 | $ | (269 | ) | $ | (249 | ) | $ | (795 | ) | $ | (739 | ) | ||||
Advertising and promotions1 | (565 | ) | (516 | ) | (1,660 | ) | (1,532 | ) | ||||||||
General administration and other1 | (6,568 | ) | (3,319 | ) | (20,140 | ) | (9,630 | ) | ||||||||
Depreciation and amortization | — | — | — | — | ||||||||||||
Total non-GAAP operating cost and expense adjustments | $ | (7,402 | ) | $ | (4,084 | ) | $ | (22,595 | ) | $ | (11,901 | ) | ||||
Adjusted operating costs and expenses: | ||||||||||||||||
Costs of revenue | $ | 115,890 | $ | 103,072 | $ | 332,371 | $ | 307,322 | ||||||||
Advertising and promotions | 34,055 | 44,687 | 123,865 | 155,262 | ||||||||||||
General administration and other | 15,841 | 12,721 | 44,419 | 38,560 | ||||||||||||
Depreciation and amortization | 8,401 | 4,039 | 22,144 | 10,066 | ||||||||||||
Total adjusted operating costs and expenses | $ | 174,187 | $ | 164,519 | $ | 522,799 | $ | 511,210 | ||||||||
- Non-GAAP Operating Costs and Expense Adjustments include Share-based compensation expense.
Reconciliations of GAAP to Non-GAAP Financial Measures |
(Unaudited and in thousands, except share and per share data) |
Adjusted Net Loss, Adjusted Weighted Average Common Shares Outstanding and Adjusted Net Loss Per Share:
Three Months Ended | Nine Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Adjusted Net Loss | ||||||||||||||||
Net loss attributable to | $ | (4,179 | ) | $ | (6,613 | ) | $ | (16,578 | ) | $ | (29,642 | ) | ||||
Adjustments: | ||||||||||||||||
Net loss attributable to non-controlling interests | (9,187 | ) | (16,044 | ) | (38,022 | ) | (73,631 | ) | ||||||||
Share-based compensation expense | 7,402 | 4,084 | 22,595 | 11,901 | ||||||||||||
Adjusted Net Loss | $ | (5,964 | ) | $ | (18,573 | ) | $ | (32,005 | ) | $ | (91,372 | ) | ||||
Adjusted Weighted Average Common Shares Outstanding | ||||||||||||||||
Weighted average common shares outstanding – basic and diluted | 69,698,787 | 64,058,437 | 67,465,694 | 63,283,591 | ||||||||||||
Adjustments: | ||||||||||||||||
Conversion of weighted average RSILP Units to Class A Common Shares | 152,319,724 | 156,373,584 | 154,196,531 | 156,796,400 | ||||||||||||
Adjusted Weighted Average Common Shares Outstanding | 222,018,511 | 220,432,021 | 221,662,225 | 220,079,991 | ||||||||||||
Net loss per common share attributable to | $ | (0.06 | ) | $ | (0.10 | ) | $ | (0.25 | ) | $ | (0.47 | ) | ||||
Adjusted Net Loss per Share | $ | (0.03 | ) | $ | (0.08 | ) | $ | (0.14 | ) | $ | (0.42 | ) |
Source:
2023 GlobeNewswire, Inc., source