Publishing its financial results for the second quarter of 2022, Rush Street Interactive (RSI) has declared a year-over-year improvement in revenue, but also an increase in net loss and adjusted advertising and promotions expenses.
CEO Richard Schwartz also gave an update on the operator’s progress in Ontario, Canada and Mexico, noting that since their respective launches, Ontario’s handle and revenue have “steadily” grown, while they’re “excited” about upcoming marketing campaigns in Mexico.
In Q2, RSI’s revenue came in at $143.7m, an 17% YoY rise compared to the $122.8m reported in Q2 2021.
While the operator has made YoY revenue growth, its net loss has increased compared to the previous year, rising to $28.3m compared to a net loss of $14m during the same period in 2021.
Q2’s adjusted EBITDA was a loss of $18.6m (2021: loss of $6.6m), while adjusted advertising and promotions expense came in at $44.2m, an 20% YoY increase (2021: $36.9m).
In the US and Canada, the operator’s real-money monthly active users (MAUs) during the quarter grew by 35% YoY to 133,000, with average revenue per MAU (ARPMAU) of $325, up 23%.
As of June 30, Rush Street’s unrestricted cash and cash equivalents on the balance sheet were $202m with no debt outstanding.
Commenting on the results, Schwartz stated: “We made further progress towards our profitability goals with a sixth market turning positive during the quarter, adding to the five markets that also showed sequential profitability improvements in the second quarter.”
Rush Street’s Ontario and Mexico launches
During the quarter, RSI launched its products in several different markets across North America and Latin America, including Mexico and the Canadian province of Ontario.
In Mexico, the operator launched its RushBet online casino and online sportsbook through an exclusive partnership with Mexican media conglomerate Grupo Multimedios.
Rush Street also went live in Ontario with its online casino and online sportsbook, extending its partnership with Bragg Gaming Group in the province as well.
Schwartz remarked: “We significantly expanded our international reach with the recent launches in Ontario and Mexico, both large population markets where online casino is legal, playing to our strength.
“We have seen our handle and revenue in Ontario steadily grow since launching at the beginning of the second quarter and remain excited about our recent launch in Mexico and the start of our upcoming marketing campaigns in that market.”
Elsewhere in Q2, Rush Street launched an online sportsbook and a live dealer offering in West Virginia, grew content production and creative capabilities with the Poker Night in America acquisition, and went live with Inspired and High 5 casino games in Pennsylvania.
The operator also improved its responsible gaming program by becoming the first US-based online casino and sports betting company to partner with Neccton to utilize its player protection software.
Updated 2022 revenue guidance
Looking ahead, Rush Street has updated its financial guidance for 2022, as it expects revenues for the full year to be between $600m and $630m. At the midpoint, revenues of $615m would be a 26% YoY improvement (2021: $488m).
“Looking forward, we are confident heading into the back half of the year and what it holds for RSI, as many of our recently launched markets will be entering their first full football and soccer seasons,” Schwartz concluded.
“With our continued growth in both the United States and international markets, we are well-positioned to achieve our goal of Adjusted EBITDA profitability for the second half of 2023.”