Strong third-quarter results from RSI lead to an upgrade in full-year forecasts
Rush Street Interactive Reports Strong Q3 Performance and Updates Guidance
Rush Street Interactive (RSI) has announced impressive financial results for Q3 2024, showcasing robust growth and an optimistic outlook for the future.
In Q3 2024, RSI's revenue surged by approximately 22% year-over-year to around $269 million. This growth was driven by strong online casino and sports betting activity. The company achieved a net profit of $28.8 million for the quarter, marking a significant turnaround from a loss in the same period of the prior year. EBITDA increased 88% year-over-year to $40.2 million.
Monthly active users (MAUs) grew robustly, increasing 21% in North America and 42% in Latin America. The average revenue per monthly active user (ARPMUA) in the U.S. and Canada hit a new quarterly record of $391. These metrics underscore improved user monetization and engagement.
The strong Q3 performance led RSI to raise its guidance for 2024, projecting full-year revenue to surpass the $1 billion mark, extending the company’s growth trajectory. However, the company acknowledged the adverse impact of a new 19% value-added tax (VAT) on player deposits in Colombia, which dampened profits despite a 70% increase in gross gaming revenue (GGR). RSI has responded with player-focused incentives to maintain net revenue levels, expecting the market in Colombia to recover strongly in 2026.
RSI's CEO, Richard Schwartz, expressed excitement about the company's financial performance, attributing it to an efficient strategy and ability to execute goals. He also emphasized the commitment to innovation, which continues to drive player retention and growth.
In addition to the strong financial performance, RSI recently launched a new online poker platform in Pennsylvania. As of September 30, 2024, RSI had approximately 168,000 monthly active users in the U.S. and Canada, up 28% year-over-year. The company also confirmed a share-buyback program that will see the company repurchase up to $50 million of its Class A common stock. RSI had $216 million in unrestricted cash and cash equivalents as of the same date.
Analysts expect the company’s earnings per share (EPS) for Q3 2024 to be around $0.05, reflecting improved profitability compared to prior quarters. RSI's net margin of around 6.2% and return on equity (ROE) of 16.34% also indicate strong operational efficiency and profitability relative to the industry.
In summary, RSI's Q3 2024 performance demonstrates its robust expansion in the online gaming sector, with enhanced user engagement and profitability contributing to its raised 2024 outlook. The company continues to accelerate player growth, acquire significantly more players with much greater marketing efficiency, and increase player values. Despite the short-term challenges in Colombia, RSI remains optimistic about its future growth.
- Rush Street Interactive's CEO, Richard Schwartz, also mentioned the company's recent entry into the online poker market, specifically in Pennsylvania, as a strategy that aligns their business with the rising technology trends in the finance and business sectors.
- To maintain and increase its market presence in the rapidly evolving technology landscape, Rush Street Interactive has also announced a share-buyback program, committing to repurchase up to $50 million of its Class A common stock, thereby indicating its confidence in the company's future performance and growth in the online gaming, finance, and technology sectors.
