Rush Street Interactive (RSI) reported another successful quarter this week. Revenues came in at $232 million, a 37% year-over-year jump. Adjusted EBITDA had an even bigger annual jump, up to $23.4 million from $4.1 million. Both numbers are quarterly records for the company.
“This success is a testament to our unique products and engaging user experience, which fosters loyal customers and drives growth and profitability. Additionally, our efficient marketing spend has contributed significantly to our bottom line. In light of these results, we are raising our 2024 revenue guidance by 3% and EBITDA guidance by 24% at the midpoint,” RSI CEO Richard Schwartz said on the company’s Thursday earnings call.
Schwartz went on to note that the company now has 168,000 monthly active users (MAU) with average revenue per monthly active users (ARPMAU) of $388.
Not only are those numbers on the rise, the cost of acquisition is on the decline. Schwartz noted that, even though promotional and advertising expenses rose from $34.1 to $38.6 million year over year, that average cost per acquisition was down by one-third.
During the previous earnings call, Schwartz noted that the company had terminated several of its affiliate agreements in order to open up the option to work with different acquisition channels as they tried to better optimize marketing spend.
Schwartz did not break down success market by market too much but did indicate that the core markets of the regional brand were not as responsible for revenues as they were in the past.
“The percentage of revenue generated from markets outside of Illinois and Pennsylvania is now 62%, up from 52% during the quarter a year ago, easily the highest it’s been since going public,” he noted.
One market he did make an exception for was Delaware. Rush Street won the RFP for a provider after the state ended its deal with 888. The company launched in the state in January and is already dwarfing the performance 888 ever put up.
“Performance has been exceptionally strong with our GGR now running at an annual rate nearing $100 million. This run rate is the result of an increase of almost 5x the predecessor operator’s run rate in iCasino and the solid success we’re having in online sports.”
The company announced they will be authorizing a $50 million share buyback program.
RSI expects revenue of $900-$920 million for 2024 and adjusted EBITDA of roughly $82-$86 million.
