- Fourth Quarter Revenue of $131 Million, up
31% Year-over-Year -
- Full Year 2021 Revenue of $488 Million, up
75% Year-over-Year -
- Initiating Full Year 2022 Revenue Guidance of
between $580 and $630 Million -
Rush Street Interactive, Inc. (NYSE: RSI) (“RSI”), a leading
online casino and sports betting company in the United States,
today announced financial results for the fourth quarter and full
year ended December 31, 2021.
Fourth Quarter 2021 Financial Highlights
- Revenue was $130.6 million during the fourth quarter of 2021,
an increase of 31%, compared to $100.0 million during the fourth
quarter of 2020.
- Net loss was $38.1 million during the fourth quarter of 2021,
compared to a net loss of $41.6 million during the fourth quarter
of 2020.
- Adjusted EBITDA1 was a loss of $31.2 million during the fourth
quarter of 2021, compared to an Adjusted EBITDA loss of $1.3
million during the fourth quarter of 2020.
- Adjusted advertising and promotions expense1 was $64.0 million
during the fourth quarter of 2021, compared to $23.1 million during
the fourth quarter of 2020.
- Real-Money Monthly Active Users (“MAUs”) in the United States
for the fourth quarter of 2021 were up 28% year-over-year with
average revenue per MAU (“ARPMAU”) of $327 during the fourth
quarter of 2021.
- As of December 31, 2021, RSI had $281 million of unrestricted
cash and cash equivalents.
Full Year 2021 Financial Highlights
- Revenue was $488.1 million during full year 2021, an increase
of 75%, compared to $278.5 million during full year 2020.
- Net loss was $71.1 million during full year 2021, compared to a
net loss of $131.6 million during full year 2020.
- Adjusted EBITDA1 was a loss of $65.1 million during full year
2021, compared to $4.4 million during full year 2020.
- Adjusted advertising and promotions expense1 was $186.9 million
during the full year 2021, compared to $56.5 million during the
full year of 2020.
- MAUs in the United States for the full year 2021 were up 67%
year-over-year with ARPMAU of $346 during the year, up 2%
year-over-year.
Richard Schwartz, Chief Executive Officer of RSI, said, “We are
continuing our disciplined approach of balancing profitability from
existing markets and investing in new market launches. RSI’s
consumer experience leverages our best-in-class technology and now
operates successfully in 14 total markets compared to only 6 at the
end of 2020. Our track record demonstrates that we have been highly
successful stewards of capital for our investors. Delivering strong
shareholder returns remains our priority.”
“On the technology and product side, we continue to enhance our
offerings and provide a best-in-class gaming experience to our
customers. As planned, we went live with our integrated iOS
sportsbook-casino app near the end of 2021. During the first half
of 2022 we look forward to expanding into Canada and Mexico with
our online casino and sportsbook sites and apps in these two large
population markets where we are well positioned to achieve
success.”
Guidance
RSI is initiating revenue guidance for the full year 2022. It
expects revenues for the full year ending December 31, 2022 to be
between $580 and $630 million. At the midpoint of the range,
revenue of $605 million represents 24% year-over-year growth when
compared to $488 million of revenues for 2021.
This range is based on certain assumptions, including that (i)
only operations in live jurisdictions as of today’s date are
included, (ii) all professional and college sports calendars that
have been announced come to fruition, including the completion of
their 2022 seasons, and (iii) RSI continues to operate in markets
in which it is live today.
Recent Business Highlights
- During the fourth quarter, launched online sportsbook in
Connecticut, along with nine of the fifteen planned retail
sportsbooks, as the sportsbook partner of the Connecticut Lottery,
and as one of just three online operators in the state.
- During the fourth quarter, launched online sportsbook in
Arizona via our partnership with the Arizona Rattlers, having
secured one of the limited sports wagering licenses in the
state.
- Following the quarter, launched online sports books in New York
and Louisiana.
- In anticipation of launch in Ontario, increased brand awareness
of BetRivers in Canada through an Olympics focused marketing
campaign.
- Entered into market access partnership with Grupo Multimedios
to bring online casino and sportsbook to Mexico with anticipated
launch in Q2 2022.
- Announced partnership to bring a retail sportsbook to the Hall
of Fame Village in Canton, Ohio.
- Became an official sportsbook partner of the New Orleans
Pelicans.
Technology Updates
- BetRivers sportsbook mobile app independently ranked #4 by
Eilers & Krejcik out of 34 apps in the US market.
- Launched RSI’s integrated iOS sportsbook-casino app in
December.
- Acquired the technology platform and onboarded the team from
Run It Once Poker.
Earnings Conference Call and Webcast Details
RSI will host a conference call and audio webcast today at 5:00
p.m. Eastern Time (4:00 p.m. Central Time), during which management
will discuss fourth quarter and full year results and provide
commentary on business performance and its current outlook for
2022. A question-and-answer session will follow the prepared
remarks.
The conference call may be accessed by dialing 1-844-200-6205
for domestic callers or 1-929-526-1599 for international callers.
The conference call access code is 516635.
A live audio webcast of the earnings conference call may be
accessed on RSI’s website at ir.rushstreetinteractive.com, along
with a copy of this press release and an investor slide
presentation. The audio webcast and investor slide presentation
will be available on RSI’s investor relations website until at
least April 2, 2022.
About Rush Street Interactive
Rush Street Interactive is a trusted online gaming and sports
entertainment company focused on regulated markets in the United
States and Latin America. Through its brands, BetRivers.com and
PlaySugarHouse.com, RSI was an early entrant in many regulated
jurisdictions and is currently live with real-money mobile, online
operations in thirteen U.S. states: Pennsylvania, Illinois, New
Jersey, New York, Connecticut, Michigan, Indiana, Virginia,
Colorado, Iowa, West Virginia, Arizona and Louisiana. RSI is also
active internationally, having been recognized as Sportsbook
Operator of the Year at the SBC Latinoamérica Awards 2021, where it
offers its online casino and sportsbook in the regulated gaming
market of Colombia on RushBet.co. RSI offers, through its
proprietary online gaming platform, some of the most popular online
casino games and sports betting options in the United States.
Founded in 2012 in Chicago by gaming industry veterans, RSI was
named the 2020 Global Gaming Awards Digital Operator of the Year
and the 2021 EGR North America Awards Casino Operator of the Year,
Customer Services Operator of the Year and Social Gaming Operator
of the Year. RSI is committed to industry-leading responsible
gaming practices and seeks to provide its customers with the
resources and services they need to play responsibly. For more
information, visit www.rushstreetinteractive.com.
Non-GAAP Financial Measures
In addition to providing financial measurements based on
accounting principles generally accepted in the United States
(“GAAP”), this press release includes certain financial measures
that are not prepared in accordance with GAAP, including Adjusted
EBITDA, Adjusted Operating Costs and Expenses, Adjusted Net Loss
Per Share, Adjusted Net Loss and Adjusted Weighted Average Common
Shares Outstanding, each of which is a non-GAAP performance measure
that RSI uses to supplement its results presented in accordance
with GAAP. A reconciliation of each such non-GAAP financial measure
to the most directly comparable GAAP financial measure can be found
below. RSI believes that presentation of these non-GAAP financial
measures provides useful information to investors regarding RSI’s
results of operations and operating performance, as they are
similar to measures reported by its public competitors and are
regularly used by security analysts, institutional investors and
other interested parties in analyzing operating performance and
prospects. These non-GAAP financial measures are not intended to be
considered in isolation or as a substitute for any GAAP financial
measures 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, income taxes, depreciation and amortization, share-based
compensation, adjustments for certain one-time or non-recurring
items and other adjustments. Adjusted EBITDA excludes certain
expenses that are required in accordance with GAAP because certain
expenses are either non-cash (for example, depreciation and
amortization, and share-based compensation) or are not related to
our underlying business performance (for example, interest income
or expense).
RSI defines Adjusted Operating Costs and Expenses as RSI’s GAAP
operating costs and expenses adjusted to exclude the impacts of
share-based compensation, certain one-time or non-recurring items
and other adjustments. Adjusted Operating Costs and Expenses
excludes certain expenses that are required in accordance with GAAP
because certain expenses are either non-cash (for example,
share-based compensation) or are not related to our underlying
business performance.
RSI defines Adjusted Net Loss Per Share as Adjusted Net Loss
divided by Adjusted Weighted Average Common Shares Outstanding.
Adjusted Net Loss is defined as net loss attributable to Rush
Street Interactive, Inc. as used in the diluted net loss per share
calculation, adjusted for the reallocation of net loss attributable
to non-controlling interests, share-based compensation, certain
one-time or non-recurring items and other adjustments. Adjusted
Weighted Average Common Shares Outstanding is defined as the
weighted average number of common shares outstanding as used in the
diluted net loss per share calculation, adjusted for the assumed
conversion of the non-controlling interest’s Rush Street
Interactive, LP Class A units to Class A common stock of RSI on a
one-to-one-basis.
RSI includes these non-GAAP financial measures because
management uses them to evaluate RSI’s core operating performance
and trends and to make strategic decisions regarding the allocation
of capital and new investments. Management believes that these
non-GAAP financial measures provide investors with useful
information on RSI’s past financial and operating performance,
enable comparison of financial results from period-to-period where
certain items may vary independent of business performance, and
allow for greater transparency with respect to metrics used by
RSI’s management in operating our business. Management also
believes these non-GAAP financial measures are useful in evaluating
our operating performance compared to that of other companies in
our industry, as these metrics generally eliminate the effects of
certain items that may vary from company to company for reasons
unrelated to overall operating performance.
Key Metrics
RSI provides certain key metrics, including MAUs and ARPMAU, in
this press release. RSI defines MAUs as the number of unique users
per month who have placed at least one real-money bet across one or
more of our online casino or online sports betting offerings, and
it defines ARPMAU as average revenue for the applicable period
divided by the average MAUs for the same period.
The numbers RSI uses to calculate MAUs and ARPMAU are based on
internal RSI data. While these numbers are based on what RSI
believes to be reasonable judgments and estimates of its customer
base for the applicable period of measurement, there are inherent
challenges in measuring usage and engagement with respect to RSI’s
online offerings across its customer base. Such challenges and
limitations may also affect RSI’s understanding of certain details
of its business. In addition, RSI’s key metrics and related
estimates, including the definitions and calculations of the same,
may differ from estimates published by third parties or from
similarly-titled metrics of its competitors due to differences in
operations, offerings, methodology and access to information. RSI
regularly reviews, and may adjust its processes for calculating,
its internal metrics to improve their accuracy.
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. 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," and similar expressions are
intended to identify such forward-looking statements. These
forward-looking statements include, without limitation, statements
regarding guidance, RSI’s future results of operations or financial
condition, RSI’s strategic plans and focus, anticipated launches of
RSI’s current or new offerings in existing or future jurisdictions,
player growth and engagement, product initiatives and the
objectives of management for future operations. 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 RSI's control and are difficult to predict. Factors that
may cause such differences include, without limitation: changes in
applicable laws or regulations; RSI’s ability to manage growth;
RSI’s ability to execute our business plan and meet its
projections; unanticipated product or service delays; general
economic and market conditions impacting the demand for RSI’s
products and services; economic and market conditions in the
gaming, entertainment and leisure industry in the markets in which
RSI operates; the potential adverse effects of the COVID-19
pandemic on capital markets, general economic conditions,
unemployment and RSI’s liquidity, operations and personnel; and
other risks and uncertainties indicated from time to time in RSI's
filings with the SEC. RSI cautions that the foregoing list of
factors is not exclusive. RSI cautions readers not to place undue
reliance upon any forward-looking statements, which speak only as
of the date made. RSI 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.
______________
1 This is a non-GAAP financial measure.
Please see “Non-GAAP Financial Measures” for more information about
this non-GAAP financial measure and “Reconciliations of GAAP to
Non-GAAP Financial Measures” for a reconciliation of the most
comparable measure calculated in accordance with GAAP to this
non-GAAP financial measure.
Rush Street Interactive,
Inc.
Consolidated Condensed
Statements of Operations and Comprehensive Loss
(Unaudited and in thousands,
except per share data)
Three Months Ended December
31, 2021
Twelve months ended December
31, 2021
2021
2020
2021
2020
Revenue
$
130,565
$
100,048
$
488,105
$
278,500
Operating costs and expenses
Costs of revenue
86,477
72,099
332,145
190,873
Advertising and promotions
64,640
23,096
190,476
56,517
General administration and other
14,868
47,632
55,518
162,447
Depreciation and amortization
1,650
714
4,245
2,082
Total operating costs and expenses
167,635
143,541
582,384
411,919
Loss from operations
(37,070
)
(43,493
)
(94,279
)
(133,419
)
Other income (expenses)
Interest expense, net
(146
)
(34
)
(187
)
(135
)
Change in fair value of warrant
liabilities
—
7,166
41,802
7,166
Change in fair value of earnout interests
liability
—
(2,338
)
(13,740
)
(2,338
)
Total other income (expenses)
(146
)
4,794
27,875
4,693
Loss before income taxes
(37,216
)
(38,699
)
(66,404
)
(128,726
)
Income tax expense
907
2,919
4,688
2,919
Net loss
$
(38,123
)
$
(41,618
)
$
(71,092
)
$
(131,645
)
Net loss attributable to non-controlling
interests
(27,718
)
(42,699
)
(51,603
)
(132,726
)
Net income (loss) attributable to Rush
Street Interactive, Inc.
$
(10,405
)
$
1,081
$
(19,489
)
$
1,081
Net income (loss) per common share
attributable to Rush Street Interactive, Inc. – basic
$
(0.17
)
$
0.02
$
(0.35
)
$
0.02
Weighted average common shares outstanding
– basic
59,581,075
43,579,704
56,265,541
43,579,704
Net loss per common share attributable to
Rush Street Interactive, Inc. – diluted
$
(0.17
)
$
(0.01
)
$
(0.51
)
$
(0.01
)
Weighted average common shares outstanding
– diluted
59,581,075
52,242,606
57,426,885
52,242,606
Three Months Ended December
31, 2021
Twelve months ended December
31, 2021
2021
2020
2021
2020
Net loss
$
(38,123
)
$
(41,618
)
$
(71,092
)
$
(131,645
)
Other comprehensive income
(loss)
Foreign currency translation
adjustment
(1,051
)
968
(2,111
)
524
Comprehensive loss
$
(39,174
)
$
(40,650
)
$
(73,203
)
$
(131,121
)
Comprehensive loss attributable to
non-controlling interests
(28,483
)
(41,731
)
(53,168
)
(132,202
)
Comprehensive income (loss)
attributable to Rush Street Interactive, Inc.
$
(10,691
)
$
1,081
$
(20,035
)
$
1,081
Rush Street Interactive,
Inc.
Reconciliations of GAAP to
Non-GAAP Financial Measures
(Unaudited and in thousands)
Adjusted EBITDA:
Three Months Ended December
31, 2021
Twelve months ended December
31, 2021
2021
2020
2021
2020
Net loss
$
(38,123
)
$
(41,618
)
$
(71,092
)
$
(131,645
)
Interest expense, net
146
34
187
135
Income tax expense
907
2,919
4,688
2,919
One-time payment from Affiliated
casino
—
—
—
(9,000
)
Depreciation and amortization
1,650
714
4,245
2,082
Change in fair value of warrant
liability
—
(7,166
)
(41,802
)
(7,166
)
Change in fair value of earnout interests
liability
—
2,338
13,740
2,338
Share-based compensation expense
4,207
41,451
24,912
144,733
Adjusted EBITDA
$
(31,213
)
$
(1,328
)
$
(65,122
)
$
4,396
Adjusted Operating Costs and
Expenses:
Three Months Ended December
31, 2021
Twelve months ended December
31, 2021
GAAP operating costs and
expenses:
Costs of revenue
$
86,477
$
72,099
$
332,145
$
190,873
Advertising and promotions
64,640
23,096
190,476
56,517
General administration and other
14,868
47,632
55,518
162,447
Depreciation and amortization
1,650
714
4,245
2,082
Total operating costs and
expenses
$
167,635
$
143,541
$
582,384
$
411,919
Non-GAAP operating cost and expense
adjustments:
Costs of revenue1
$
(297
)
$
—
$
(1,808
)
$
9,000
Advertising and promotions2
(634
)
—
(3,605
)
—
General administration and other2
(3,276
)
(41,451
)
(19,499
)
(144,733
)
Depreciation and amortization
—
—
—
—
Total non-GAAP operating cost and
expense adjustments
$
(4,207
)
$
(41,451
)
$
(24,912
)
$
(135,733
)
Adjusted operating costs and
expenses:
Costs of revenue
$
86,180
$
72,099
$
330,337
$
199,873
Advertising and promotions
64,006
23,096
186,871
56,517
General administration and other
11,592
6,181
36,019
17,714
Depreciation and amortization
1,650
714
4,245
2,082
Total adjusted operating costs and
expenses
$
163,428
$
102,090
$
557,472
$
276,186
- Non-GAAP Operating Costs and Expense Adjustments for the three
and twelve months ended December 31, 2021 include Share-based
compensation, while Non-GAAP Operating Costs and Expense
Adjustments for the twelve months ended December 31, 2020 include a
one-time payment from Affiliated casino.
- Share-based compensation.
Rush Street Interactive,
Inc.
Reconciliations of GAAP to
Non-GAAP Financial Measures
(Unaudited and in thousands,
except share and per share data)
Adjusted Net Loss, Adjusted Weighted
Average Common Shares Outstanding and Adjusted Net Loss Per
Share:
Three Months Ended December
31, 2021
Twelve months ended December
31, 2021
Adjusted Net Loss
Net loss attributable to Rush Street
Interactive, Inc. – diluted1
$
(10,405
)
$
(29,058
)
Adjustments:
Net loss attributable to non-controlling
interests
(27,718
)
(51,603
)
Change in fair value of warrant
liabilities attributable to non-controlling interests
—
(32,233
)
Change in fair value of earnout interests
liability
—
13,740
Share-based compensation expense
4,207
24,912
Adjusted Net Loss
$
(33,916
)
$
(74,242
)
Adjusted Weighted Average Common Shares
Outstanding
Weighted average common shares outstanding
– diluted2
59,581,075
57,426,885
Adjustments:
Conversion of weighted average RSILP units
to Class A Common Shares
159,657,590
159,417,041
Adjusted Weighted Average Common Shares
Outstanding
219,238,665
216,843,926
Net loss per common share attributable to
Rush Street Interactive, Inc. – diluted:
$
(0.17
)
$
(0.51
)
Adjusted Net Loss per Share
$
(0.15
)
$
(0.34
)
- Net loss attributable to Rush Street Interactive, Inc. –
diluted for the twelve months ended December 31, 2021, includes the
Net loss attributable to Rush Street Interactive, Inc. adjusted for
the dilutive effect of previously outstanding warrants that were
redeemed in March 2021 (i.e., the portion of the change in fair
value of warrants attributed to Rush Street Interactive Inc.).
There was no dilutive effect for the three months ended December
31, 2021.
- Weighted average common shares outstanding – diluted for the
twelve months ended December 31, 2021, includes the basic number of
weighted average common shares outstanding, adjusted for the
dilutive effect of previously outstanding warrants that were
redeemed in March 2021 using the Treasury Stock Method. There was
no dilutive effect for the three months ended December 31,
2021.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220302005941/en/
Media Contacts: Jonathan Gasthalter / Carissa Felger /
Sam Fisher (312) 319-9233 / (212) 257-4170 rsi@gasthalter.com or
Lisa Johnson (609) 788-8548 lisa@lisajohnsoncommunications.com
Investor Contact: ir@rushstreetinteractive.com
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