Rush Street Interactive posts record Q1 revenue of $217.4 million

Rush Street Interactive (RSI) has announced record revenue of $217.4 million for the first quarter of 2024, marking a significant 33.9% increase compared to the same period last year. Buoyed by the standout performance, the company has raised its full-year guidance to about $835 million, $35 million higher than the original forecast.

The surge in revenue for the three months ending on March 31 was primarily driven by the expansion of its online casino and sports betting businesses, coupled with a focus on enhancing the user experience, according to company officials.

Richard Schwartz, CEO of Rush Street Interactive, said that the positive momentum of the previous year has carried over into 2024. Schwartz attributed the record revenue to the successful execution of RSI's strategic initiatives and the increasing engagement of players on its platform.

"This was accomplished by growing both our iCasino and Online Sports businesses by over 35% year-over-year, in large part by acquiring new players more efficiently while simultaneously increasing the number and value of our users," Schwartz said. 

“Said simply, we are adding players to our platform more quickly. Players on average are of higher value. We are finding these new players more efficiently than ever and we are driving meaningful profitability from this impressive growth.”

In addition to the record revenue, RSI also reported a notable improvement in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q1. Adjusted EBITDA was $17.1 million, compared to a loss of $8.7 million during the first quarter of 2023, an improvement of $25.8 million.

The company's strong financial performance has led to an upward revision of its full-year guidance, with revenue expected to range between $810.0 million and $860.0 million, and adjusted EBITDA projected to be between $50.0 million and $60.0 million.

“We are very excited about the opportunity to continue to scale the business and drive growth on the back of our current momentum, which includes increasing our adjusted EBITDA guidance by 38% at the midpoint,” Schwartz said.

The launch of the first online sportsbook for the Delaware Lottery in partnership with BetRivers in late December, just before the start of Q1, has proved to be a notable success for RSI, the company says. The sportsbook went live along with three new-look online casinos, also powered by Rush Street.

Schwartz highlighted the strong performance in Delaware, where annual gross gaming revenue reached nearly $70.0 million, up $10 million from the previous quarter.

Elsewhere in the report, despite a slight increase in operating expenses in Q1, RSI was able to achieve a significant turnaround in its financial performance, reporting an operating profit of $1.5 million compared to a loss of $22.1 million in the previous year's first quarter. 

Further, interest income of $1.6 million resulted in a pre-tax profit of $3.1 million in Q1 2024 against a loss of $21.7 million last year. After paying income tax of $5.3 million, the net loss stood at $2.2 million, much less than the $24.5 million loss in 2023.