- Third Quarter Revenue of $78.2 Million,
up 370% Year-over-Year - - Raising 2020 Full Year Revenue Guidance
by 20% to between $265 and $275 Million -
Rush Street Interactive, LP (“RSI” or the “Company”), one of the
fastest-growing online casino and sports betting gaming companies
in the United States, today announced financial results for the
third quarter ended September 30, 2020.
Third Quarter 2020 Financial Highlights
- Revenue was $78.2 million during the third quarter of 2020,
compared to $16.7 million during the third quarter of 2019.
- Comprehensive loss was $(28.1) million during the third quarter
of 2020, compared to a comprehensive loss of $(1.6) million during
the third quarter of 2019.
- Advertising and promotions expense was $17.5 during the third
quarter of 2020, compared to $9.7 million during the third quarter
of 2019.
- Adjusted EBITDA1 was $9.9 million during the third quarter of
2020, compared to an Adjusted EBITDA of $(1.3) million during the
third quarter of 2019.
- Real Money Active Users in the United States were up 135%
year-over-year and 87% quarter-over-quarter.
Greg Carlin, Chief Executive Officer of RSI, said: “Solid
execution and financial discipline helped drive our third quarter
success. During our third quarter, we grew revenues 370%
year-over-year with an 81% increase in marketing spend during the
same period. As we move toward completing a transformational year
for RSI, we have built a strong technological and operational
foundation that we expect will continue to serve us well as we
expand into new markets. We are excited to be on the path to
becoming a publicly listed company and expect that our customer
acquisition strategy and growing market share will create
sustainable long-term value for our shareholders.”
Richard Schwartz, President of RSI, added: “Our third quarter
results demonstrate RSI’s commitment to excellence and validates
our focus on player engagement and building a best-in-class
technology stack, which have enabled us to attract and retain a
loyal and diverse user base. We have maintained the #1 online
casino share in the United States for the second straight quarter
according to Eilers & Krejcik. The discipline in how we bring
new players onto the BetRivers.com and PlaySugarHouse.com
platforms, and retain existing players, is the hallmark of our
approach and will remain core to the Company as we continue to
expand and enhance our product offerings.”
Kyle Sauers, Chief Financial Officer of RSI, said: “On the back
of our strong third quarter results, we are raising full year 2020
revenue guidance to a range of $265 to $275 million. At the
midpoint this represents an increase from our previous guidance of
20%.”
Recent Business Highlights
- Entered into a business combination agreement with dMY
Technology Group, Inc. (“dMY”) (NYSE: DMYT.U, DMYT and DMYT WS)
which, upon closing of the business combination contemplated
thereby, will result in the Company becoming a publicly listed
company on the NYSE under the ticker symbol “RSI.”
- Won several notable industry awards, including both Casino
Operator of the Year and Customer Service Operator of the Year at
the 2020 EGR North America Awards and Digital Operator of the Year
at the Global Gaming Awards Las Vegas 2020.
- Continued to build and strengthen the RSI leadership team by
adding public company veteran Kyle Sauers as Chief Financial
Officer.
- Entered into strategic marketing or sponsorship arrangements
with the five-time Stanley Cup champions Pittsburgh Penguins,
former six-time NFL all-pro running back and Hall of Famer, Jerome
Bettis and TopGolf, the global sports and entertainment company, as
well as iHeart Media and Entercom, two of the largest broadcasting
and entertainment companies in the United States.
- Commenced a multi-year agreement with VSiN, the first
multi-platform broadcasting company dedicated to delivering news,
analysis and proprietary data about the sports betting industry.
The agreement includes airing the first national sports betting
show to broadcast from a sportsbook in Illinois and allows for
other BetRivers.com marketing initiatives.
- Partnered with IMG Arena to debut the first-ever UFC Event
Centre, a leading sports betting content hub that stimulates
incremental new live betting opportunities during every UFC
fight.
- Continued to add new and popular content to RSI’s online casino
offerings in the United States and Colombia such as premiering live
dealer tables in Pennsylvania and new slots games from leading
online casino providers such as NetEnt Group, Gaming Realms
(Slingo), and Ainsworth Game Technology.
- Expanded player funding options in New Jersey and Pennsylvania
by accepting the Game OnTM card developed by Blackhawk Network,
which offers players increased budgeting control and privacy.
- Partnered with Coushatta Casino Resort in Louisiana to offer
social casino and social sportsbook.
Financial Outlook
The Company now expects revenues for the full year ending
December 31, 2020 to be between $265 and $275 million, an increase
at the midpoint of 20% from its prior guidance of $225 million.
During fiscal 2019, the Company had revenue of $64 million. The
revised guidance assumes professional and college sports calendars
occur as currently planned.
About Rush Street Interactive
Founded in 2012 by gaming industry veterans Neil Bluhm, Greg
Carlin and Richard Schwartz, RSI is a market leader in online
casino and sports betting in the U.S. The Company launched its
first online gaming casino site, PlaySugarHouse.com in New Jersey,
in September 2016 and was the first gaming company to launch a
regulated online gaming site in Pennsylvania. With its
BetRivers.com sites, Rush Street Interactive was also the first to
launch regulated online gaming in the states of Indiana, Colorado
and, most recently, Illinois. RSI has been an early mover in Latin
America and was the first U.S.-based gaming operator to launch a
legal and regulated online casino and sportsbook, RushBet.co, in
the country of Colombia. Rush Street Interactive was named the 2020
Global Gaming Awards Digital Operator of the Year, and the 2020 EGR
North America Awards Casino Operator of the Year and Customer
Service Operator of the Year. For more information, visit
www.rushstreetinteractive.com.
Non-GAAP Financial Measures
This press release includes Adjusted EBITDA, which is a non-GAAP
performance measure that RSI uses to supplement its results
presented in accordance with GAAP. RSI believes Adjusted EBITDA is
useful in evaluating its operating performance, as it is similar to
measures reported by its public competitors and is regularly used
by security analysts, institutional investors and other interested
parties in analyzing operating performance and prospects. Adjusted
EBITDA is not intended to be a substitute for any GAAP financial
measure and, as calculated, may not be comparable to other
similarly titled measures of performance of other companies in
other industries or within the same industry.
RSI defines Adjusted EBITDA as net income (loss) before interest
expense, income taxes, depreciation and amortization, share-based
compensation, adjustments for certain one-time or non-recurring
items and other adjustments. RSI includes this non-GAAP financial
measure because it is used by management to evaluate RSI’s core
operating performance and trends and to make strategic decisions
regarding the allocation of capital and new investments. Adjusted
EBITDA excludes certain expenses that are required in accordance
with GAAP because certain expenses are either non-cash expenses
(for example, depreciation and amortization and share-based
compensation) or are not related to our underlying business
performance (for example, interest income, net).
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. dMY's and RSI's actual
results may differ from their expectations, estimates and
projections and consequently, you should not rely on these
forward-looking statements as predictions of future events. Words
such as "expect," "estimate," "project," "budget," "forecast,"
"anticipate," "intend," "plan," "may," "will," "could," "should,"
"believes," "predicts," "potential," "continue," “outlook” and
similar expressions are intended to identify such forward-looking
statements. These forward-looking statements include, without
limitation, dMY's and RSI's expectations with respect to future
performance and anticipated financial impacts of the proposed
business combination, the satisfaction of the closing conditions to
the proposed business combination and the timing of the completion
of the proposed business combination. These forward-looking
statements involve significant risks and uncertainties that could
cause the actual results to differ materially from the expected
results. Most of these factors are outside dMY's and RSI's control
and are difficult to predict. Factors that may cause such
differences include, but are not limited to: (1) the occurrence of
any event, change or other circumstances that could give rise to
the termination of the definitive business combination agreement
(the "Agreement"); (2) the outcome of any legal proceedings that
may be instituted against dMY and RSI following the announcement of
the Agreement and the transactions contemplated therein; (3) the
inability to complete the proposed business combination, including
due to failure to obtain approval of the stockholders of dMY,
certain regulatory approvals or satisfy other conditions to closing
in the Agreement; (4) the occurrence of any event, change or other
circumstance that could give rise to the termination of the
Agreement or could otherwise cause the transaction to fail to
close; (5) the impact of COVID-19 on RSI's business and/or the
ability of the parties to complete the proposed business
combination; (6) the inability to obtain or maintain the listing of
dMY's shares of common stock on the New York Stock Exchange
following the proposed business combination; (7) the risk that the
proposed business combination disrupts current plans and operations
as a result of the announcement and consummation of the proposed
business combination; (8) the ability to recognize the anticipated
benefits of the proposed business combination, which may be
affected by, among other things, competition, the ability of RSI to
grow and manage growth profitably and retain its key employees; (9)
costs related to the proposed business combination; (10) changes in
applicable laws or regulations; (11) the possibility that RSI or
dMY may be adversely affected by other economic, business, and/or
competitive factors; and (12) other risks and uncertainties
indicated from time to time in the proxy statement relating to the
proposed business combination, including those under "Risk Factors"
therein, and in dMY's other filings with the SEC. dMY cautions that
the foregoing list of factors is not exclusive. dMY cautions
readers not to place undue reliance upon any forward-looking
statements, which speak only as of the date made. dMY does not
undertake or accept any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements
to reflect any change in its expectations or any change in events,
conditions or circumstances on which any such statement is
based.
Important Information About the Proposed Business Combination
and Where to Find It
In connection with the proposed business combination, dMY filed
a preliminary proxy statement with the SEC on October 9, 2020 and
November 12, 2020 and intends to file a definitive proxy statement
with the SEC. dMY’s stockholders and other interested persons are
advised to read the preliminary proxy statement and the amendments
thereto and when available the definitive proxy statement and
documents incorporated by reference therein filed in connection
with the proposed business combination, as these materials will
contain important information about RSI, dMY and the proposed
business combination. When available, the definitive proxy
statement and other relevant materials for the proposed business
combination will be mailed to stockholders of dMY as of a record
date to be established for voting on the proposed business
combination. Stockholders will also be able to obtain copies of the
preliminary proxy statement, the definitive proxy statement and
other documents filed with the SEC that will be incorporated by
reference therein, without charge, once available, at the SEC’s web
site at www.sec.gov, or by directing a request to: dMY Technology
Group, Inc., Attention: Niccolo de Masi, Chief Executive Officer,
niccolo@dmytechnology.com.
Participants in the Solicitation
dMY and its directors and executive officers may be deemed
participants in the solicitation of proxies from dMY's stockholders
with respect to the business combination. A list of the names of
those directors and executive officers and a description of their
interests in dMY is contained in the Registration Statement on Form
S-1, which was filed by dMY with the SEC on January 31, 2020 and is
available free of charge at the SEC’s website at www.sec.gov, or by
directing a request to dMY Technology Group, Inc., 1180 North Town
Center Drive, Suite 100, Las Vegas, Nevada 89144. Additional
information regarding the interests of such participants will be
contained in the proxy statement for the proposed business
combination when available.
RSI and its directors and executive officers may also be deemed
to be participants in the solicitation of proxies from the
shareholders of dMY in connection with the business combination. A
list of the names of such directors and executive officers and any
information regarding their interests in the proposed business
combination is included in the proxy statement referred to above
for the proposed business combination.
No Offer or Solicitation
This press release shall not constitute a solicitation of a
proxy, consent or authorization with respect to any securities or
in respect of the proposed business combination. This press release
shall also not constitute an offer to sell or the solicitation of
an offer to buy any securities, nor shall there be any sale of
securities in any states or jurisdictions in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended.
Rush Street Interactive,
LP
Consolidated Condensed
Statements of Operations and Comprehensive Loss
(Unaudited and in thousands)
For the Three Months
Ended
For the Nine Months
Ended
September 30,
September 30,
2020
2019
2020
2019
Revenue
$
78,237
$
16,663
$
178,452
$
35,848
Operating costs and expenses:
Cost of revenue
47,107
6,311
118,774
16,256
Advertising and promotions
17,506
9,648
33,421
19,660
General administration and other
39,650
2,145
114,815
6,401
Depreciation and amortization
452
320
1,368
799
Total operating costs and expenses
104,715
18,424
268,378
43,116
Loss from operations
(26,478)
(1,761)
(89,926)
(7,268)
Other expense
Interest expense, net
(16)
(31)
(101)
(92)
Total other expense
(16)
(31)
(101)
(92)
Net loss
(26,494)
(1,792)
(90,027)
(7,360)
Deemed dividend on preferred units
(1,521)
-
(4,288)
-
Net loss attributable to
members
$
(28,015)
$
(1,792)
$
(94,315)
$
(7,360)
Other comprehensive income
(loss)
Foreign currency translation
adjustment
(134)
191
(444)
186
Comprehensive loss
$
(28,149)
$
(1,601)
$
(94,759)
$
(7,174)
Rush Street Interactive,
LP
Reconciliation of
Comprehensive Loss to Adjusted EBITDA
(Unaudited and in thousands)
For the Three Months
Ended
For the Nine Months
Ended
September 30,
September 30,
2020
2019
2020
2019
Comprehensive loss
$
(28,149)
$
(1,601)
$
(94,759)
$
(7,174)
Depreciation and amortization
452
320
1,368
799
Interest, net
16
31
101
92
Deemed dividend on preferred units
1,521
-
4,288
-
Share-based compensation
36,024
-
103,283
-
Adjusted EBITDA
$
9,864
$
(1,250)
$
14,281
$
(6,283)
1 Adjusted EBITDA is a Non-GAAP financial measure. Please see
“Reconciliation of Comprehensive Loss to Adjusted EBITDA” for a
reconciliation of Adjusted EBITDA to the most comparable measure
calculated in accordance with GAAP.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201124005552/en/
For RSI: Media: Jonathan Gasthalter / Carissa
Felger / Nathaniel Garnick (312) 319-9233 / (212) 257-4170
rsi@gasthalter.com or Lisa Johnson (609) 788-8548
lisa@lisajohnsoncommunications.com Investors: rsi@icrinc.com
For dMY: Niccolo de Masi (310) 600-6667
niccolo@dmytechnology.com
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