NYSE$RSI

Rush Street Interactive Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported a solid third quarter with revenue up 20% year-over-year, driven by efficient marketing and a robust platform.

Rush Street Interactive (RSI) announced its third quarter 2022 financial results, with revenue reaching $148.0 million, a 20% increase compared to the same period in 2021. The company reported a net loss of $22.7 million and an adjusted EBITDA loss of $12.5 million. Despite currency headwinds and a lower than normal online casino hold rate, RSI achieved its fourteenth consecutive quarter of sequential revenue growth. The company expects revenues for the full year to be between $580 million and $600 million.

  • Revenue increased by 20% year-over-year to $148.0 million.
  • Net loss was $22.7 million, compared to a net loss of $18.9 million in the third quarter of 2021.
  • Adjusted EBITDA loss was $12.5 million, slightly up from $12.2 million in the third quarter of 2021.
  • Real-Money Monthly Active Users (MAUs) in the United States and Canada grew 31% year-over-year to 130,000, with average revenue per MAU (ARPMAU) of $345, up 6% sequentially.

Headline financials

Total Revenue

$148M

Previous: $123M+20.4%
EPS (adj)

-$0.08

Previous: -$0.07-14.3%
Capital Expenditures

$1M

Previous: -$1.99M+150.4%
Free Cash Flow

$7.64M

Previous: -$7.29M+204.8%
Net Income

-$22.7M

Previous: -$5.3M-328.3%
Operating Income

-$20.6M

Previous: -$17.7M-16.4%
Gross Profit

$44.7M

Previous: $41.7M+7.2%
Cash & Equivalents

$195M

Previous: $347M-43.7%
Total Assets

$345M

Previous: $421M-18.1%
Stock-Based Comp

$4.08M

Previous: $4.47M-8.6%

Revenue & EPS history

Rush Street · Revenue · Quarterly

$148M

Q3 2022+20.4%vs Q3 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

RSI expects revenues for the full year ending December 31, 2022 to be between $580 million and $600 million.

Tailwinds

  • Strong volumes in markets with both online casino and sports betting.
  • Enhanced profitability offered by the online casino vertical.
  • Strong results from Colombia and Ontario.
  • Plans to increase marketing efforts in Mexico.
  • Focus on building a strong foundation in new markets for long-term growth.

Headwinds

  • Currency fluctuations impacting international revenue.
  • Lower than normal online casino hold rate.
  • Net loss was $22.7 million during the third quarter of 2022, compared to a net loss of $18.9 million during the third quarter of 2021.
  • Adjusted EBITDA was a loss of $12.5 million during the third quarter of 2022, compared to an Adjusted EBITDA loss of $12.2 million during the third quarter of 2021.
  • The midpoint of the revenue guidance range implies 25% year-over-year growth for the fourth quarter, suggesting a potential slowdown.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+1.2%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+7.0%

Avg return

30 days after

50%

12 / 24 earnings

Positive

+18.6%

Q4 2023

Best reaction

-19.3%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.1%+4.3%-9.5%
Q4 2025+7.7%+8.3%+22.2%
Q3 2025-6.7%-7.6%+1.5%
Q1 2025-5.6%-5.2%+4.6%
Q4 2024-15.3%-15.1%-18.6%
Q3 2024+2.0%+2.4%+35.9%
Q2 2024+7.9%-5.0%-6.1%
Q1 2024+18.2%+30.2%+40.1%
Q4 2023+18.6%+9.7%+33.1%
Q3 2023+5.3%+12.0%+23.5%
Q2 2023+15.6%+9.6%+19.7%
Q1 2023-0.3%+2.5%+1.9%
Q4 2022-8.4%-8.8%-25.8%
Q3 2022-7.6%-6.7%-15.4%
Q2 2022-3.9%-10.0%-19.6%
Q1 2022-1.3%-19.6%-15.4%
Q4 2021-19.3%-22.7%-27.8%
Q3 2021+1.5%+3.1%-14.7%
Q2 2021+3.8%-5.0%+20.6%
Q1 2021-1.6%+3.4%+12.9%
Q4 2020+18.0%+26.9%-2.9%
Q3 2020+2.3%+25.7%+80.7%
Q2 2020+0.9%+0.7%+26.9%
Q1 2020-1.9%-1.9%-0.1%

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