Rush Street Interactive suffers net loss despite 75% YoY revenue jump

Rush Street Interactive has posted its Q4 and FY2021 financials, declaring improvements in net loss and revenue, but significant losses in adjusted EBITDA.  
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Rush Street Interactive Inc (RSI) has announced its financial results for the fourth quarter and full-year 2021, declaring improvements in net loss and revenue, but significant losses in adjusted EBITDA.  

RSI has also initiated its guidance for 2022, as it is forecasting revenue for the full year to be between $580m and $630m.

For Q4, ended December 31, 2021, the operator reported revenue of $130.6m, a 31% improvement year-over-year compared to $100.0m recorded during Q4 2020. Revenues for the full-year hit $488.1m, a 75% increase YoY (FY2020: $278.5m).

Despite the revenue jump, RSI declared a net loss of $38.1m during Q4 (Q4 2020: $41.6m net loss) and a full-year net loss of $71.1m (FY2020: $131.6m net loss).

The operator’s Q4 adjusted EBITDA was a loss of $31.2m (Q4 2020: loss of $1.3m) while its full-year adjusted EBITDA was also a loss of $65.1m (FY2020: $4.4m).

RSI’s adjusted advertising and promotions expense came in at $64.0m in Q4 (Q4 2020: $23.1m), while its full-year adjusted advertising and promotions expense stood at $186.9m (FY2020: $56.5m).

Real-Money Monthly Active Users (MAUs) in the US went up 28% YoY for the operator in Q4 with average revenue per MAU (ARPMAU) of $327. For the full year, MAUs in the US were up 67% YoY with ARPMAU of $346, a 2% rise YoY.

As of December 31, 2021, RSI had $281m of unrestricted cash and cash equivalents.

CEO Richard Schwartz commented: “We are continuing our disciplined approach of balancing profitability from existing markets and investing in new market launches.

“RSI’s consumer experience leverages our best-in-class technology and now operates successfully in 14 total markets compared to only six at the end of 2020. Our track record demonstrates that we have been highly successful stewards of capital for our investors. Delivering strong shareholder returns remains our priority.”

During Q4, via its sportsbook partnership with the Connecticut Lottery, RSI launched its online sportsbook in Connecticut, along with nine of the 15 planned retail sportsbooks. In Arizona, it launched an online sportsbook through its partnership with the Arizona Rattlers. RSI also went live with its integrated iOS sportsbook-casino app near the end of the year. 

So far in 2022, the operator has launched online sportsbooks in New York and Louisiana, as well as increased BetRivers’ brand awareness in Canada via an Olympics-focused marketing campaign in anticipation of launch in Ontario.

RSI has also agreed to a market access partnership with Grupo Multimedios to bring online casino and sportsbook to Mexico with an expected Q2 2022 launch, it sealed a retail sportsbook partnership with the Hall of Fame Village in Canton, Ohio, and it became an official sportsbook partner of the New Orleans Pelicans.

Looking ahead, RSI is initiating revenue guidance for the full year 2022. It expects revenues for FY2022 to be between $580m and $630m. The midpoint of the range of this estimate of $605m represents a 24% YoY growth when compared to 2021’s $488m revenues.

Schwartz concluded: “During the first half of 2022 we look forward to expanding into Canada and Mexico with our online casino and sportsbook sites and apps in these two large population markets where we are well-positioned to achieve success.”