- Second Quarter Revenue of $144 Million, up
17% Year-over-Year -
- Tightens Full Year 2022 Revenue Guidance to
between $600 and $630 Million -
Rush Street Interactive, Inc. (NYSE: RSI) (“RSI”), a leading
online casino and sports betting company in the United States and
the rest of the Americas, today announced financial results for the
second quarter ended June 30, 2022.
Second Quarter 2022 Financial Highlights
- Revenue was $143.7 million during the second quarter of 2022,
an increase of 17%, compared to $122.8 million during the second
quarter of 2021.
- Net loss was $28.3 million during the second quarter of 2022,
compared to a net loss of $14.0 million during the second quarter
of 2021.
- Adjusted EBITDA1 was a loss of $18.6 million during the second
quarter of 2022, compared to an Adjusted EBITDA loss of $6.6
million during the second quarter of 2021.
- Adjusted advertising and promotions expense1 was $44.2 million
during the second quarter of 2022, an increase of 20% compared to
$36.9 million during the second quarter of 2021.
- Real-Money Monthly Active Users (“MAUs”) in the United States
and Canada for the second quarter of 2022 grew 35% year-over-year
to 133,000 with average revenue per MAU (“ARPMAU”) of $325 during
the second quarter of 2022, up 23% sequentially.
- As of June 30, 2022, unrestricted cash and cash equivalents on
the balance sheet were $202 million with no debt outstanding.
Richard Schwartz, Chief Executive Officer of RSI, said, “We made
further progress towards our profitability goals with a sixth
market turning positive during the quarter, adding to the five
markets that also showed sequential profitability improvements in
the second quarter.
We significantly expanded our international reach with the
recent launches in Ontario and Mexico, both large population
markets where online casino is legal, playing to our strength. We
have seen our handle and revenue in Ontario steadily grow since
launching at the beginning of the second quarter and remain excited
about our recent launch in Mexico and the start of our upcoming
marketing campaigns in that market.
Looking forward, we are confident heading into the back half of
the year and what it holds for RSI, as many of our recently
launched markets will be entering their first full football and
soccer seasons.
With our continued growth in both the United States and
international markets, we are well-positioned to achieve our goal
of Adjusted EBITDA profitability for the second half of 2023.”
Updating 2022 Revenue Guidance
RSI expects revenues for the full year ending December 31, 2022
to be between $600 million and $630 million. At the midpoint of the
range, revenue of $615 million represents 26% year-over-year growth
when compared to $488 million of revenues for 2021.
Recent Business Highlights
- Launched online casino and online sportsbook in Mexico through
exclusive partnership with Mexican media conglomerate Grupo
Multimedios, further expanding presence in Latin America.
- Launched online casino and online sportsbook in Ontario.
- Added online sportsbook to existing online casino offering in
West Virginia.
- Expanded content production and creation capabilities with the
acquisition of Poker Night in America.
- Enhanced responsible gaming program by being first in U.S. to
deploy Neccton’s player protection software.
- Expanded casino offering by being first to launch live dealer
in West Virginia and both Inspired and High 5 casino games in
Pennsylvania.
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 second quarter 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 1-866-306-3663
for domestic callers or 1-973-528-0142 for international callers.
The conference call access code is 306159
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 September 4, 2022.
About Rush Street Interactive
RSI is a trusted online gaming and sports entertainment company
focused on markets in the United States, Canada and Latin America.
Through its brands, BetRivers, PlaySugarHouse and RushBet, RSI was
an early entrant in many regulated jurisdictions. It currently
offers real-money mobile and online operations in thirteen U.S.
states: Pennsylvania, Illinois, New Jersey, New York, Connecticut,
Michigan, Indiana, Virginia, Colorado, Iowa, West Virginia, Arizona
and Louisiana, as well as in the regulated international markets of
Ontario, Canada, Colombia and Mexico. 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 2022 EGR North America Awards Operator of the Year,
Customer Services Operator of the Year and Social Gaming Operator
of the Year, and the 2021 SBC Latinoamérica Awards Sportsbook
Operator of the Year. RSI was the first U.S.-based online casino
and sports betting operator to achieve RG Check iGaming
Accreditation from the Responsible Gaming Council. 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 securities 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 (i.e., depreciation and amortization,
and share-based compensation) or are not related to our underlying
business performance (i.e., 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 (i.e., 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 (which are based on the same assumptions used
for RSI’s 2022 guidance, including no impact from any new market
launches after August 4, 2022), 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 its business plan, meet its projections
and obtain relevant market access and/or gaming licenses;
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, inflation rates,
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, except as required by
law.
____________________ 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.
Condensed Consolidated
Statements of Operations
(Unaudited and in thousands,
except per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Revenue
$
143,736
$
122,800
$
278,674
$
234,620
Operating costs and expenses
Costs of revenue
104,882
84,760
204,740
164,447
Advertising and promotions
44,742
37,543
111,591
79,759
General administration and other
16,610
11,768
32,150
28,332
Depreciation and amortization
3,290
914
6,027
1,588
Total operating costs and expenses
169,524
134,985
354,508
274,126
Loss from operations
(25,788
)
(12,185
)
(75,834
)
(39,506
)
Other income (expenses)
Interest expense, net
(223
)
(17
)
(445
)
(30
)
Change in fair value of warrant
liabilities
—
—
—
41,802
Change in fair value of earnout interests
liability
—
—
—
(13,740
)
Total other income (expenses)
(223
)
(17
)
(445
)
28,032
Loss before income taxes
(26,011
)
(12,202
)
(76,279
)
(11,474
)
Income tax expense
2,335
1,752
4,337
2,556
Net Loss
$
(28,346
)
$
(13,954
)
$
(80,616
)
$
(14,030
)
Net loss attributable to non-controlling
interests
(20,014
)
(10,187
)
(57,587
)
(10,246
)
Net loss attributable to Rush Street
Interactive, Inc.
$
(8,332
)
$
(3,767
)
$
(23,029
)
$
(3,784
)
Net loss per common share attributable to
Rush Street Interactive, Inc. – basic
$
(0.13
)
$
(0.06
)
$
(0.37
)
$
(0.07
)
Weighted average common shares outstanding
– basic
63,976,146
59,163,547
62,889,746
53,093,129
Net loss per common share attributable to
Rush Street Interactive, Inc. – diluted
$
(0.13
)
$
(0.06
)
$
(0.37
)
$
(0.24
)
Weighted average common shares outstanding
– diluted
63,976,146
59,163,547
62,889,746
55,452,029
Rush Street Interactive,
Inc.
Condensed Consolidated
Statements of Comprehensive Loss
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Net loss
$
(28,346
)
$
(13,954
)
$
(80,616
)
$
(14,030
)
Other comprehensive loss
Foreign currency translation
adjustment
(1,923
)
(268
)
(409
)
(892
)
Comprehensive loss
$
(30,269
)
$
(14,222
)
$
(81,025
)
$
(14,922
)
Comprehensive loss attributable to
non-controlling interests
(21,378
)
(10,383
)
(57,863
)
(10,923
)
Comprehensive loss attributable to Rush
Street Interactive, Inc.
$
(8,891
)
$
(3,839
)
$
(23,162
)
$
(3,999
)
Rush Street Interactive,
Inc.
Reconciliations of GAAP to
Non-GAAP Financial Measures
(Unaudited and in thousands)
Adjusted EBITDA:
Three Months Ended June
30,
Six Months Ended June
30,
($ in thousands)
2022
2021
2022
2021
Net loss
$
(28,346
)
$
(13,954
)
$
(80,616
)
$
(14,030
)
Interest expense, net
223
17
445
30
Income tax expense
2,335
1,752
4,337
2,556
Depreciation and amortization
3,290
914
6,027
1,588
Change in fair value of warrant
liabilities
—
—
—
(41,802
)
Change in fair value of earnout interests
liability
—
—
—
13,740
Share-based compensation expense
3,880
4,661
7,817
16,237
Adjusted EBITDA
$
(18,618
)
$
(6,610
)
$
(61,990
)
$
(21,681
)
Adjusted Operating Costs and
Expenses:
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
GAAP operating costs and
expenses:
Costs of revenue
$
104,882
$
84,760
$
204,740
$
164,447
Advertising and promotions
44,742
37,543
111,591
79,759
General administration and other
16,610
11,768
32,150
28,332
Depreciation and amortization
3,290
914
6,027
1,588
Total operating costs and
expenses
$
169,524
$
134,985
$
354,508
$
274,126
Non-GAAP operating cost and expense
adjustments:
Costs of revenue1
$
(246
)
$
(298
)
$
(490
)
$
(1,213
)
Advertising and promotions1
(511
)
(636
)
(1,016
)
(2,334
)
General administration and other1
(3,123
)
(3,727
)
(6,311
)
(12,690
)
Depreciation and amortization
—
—
—
—
Total non-GAAP operating cost and
expense adjustments
$
(3,880
)
$
(4,661
)
$
(7,817
)
$
(16,237
)
Adjusted operating costs and
expenses:
Costs of revenue
$
104,636
$
84,462
$
204,250
$
163,234
Advertising and promotions
44,231
36,907
110,575
77,425
General administration and other
13,487
8,041
25,839
15,642
Depreciation and amortization
3,290
914
6,027
1,588
Total adjusted operating costs and
expenses
$
165,644
$
130,324
$
346,691
$
257,889
1
Non-GAAP Operating Costs and
Expense Adjustments for the three-and-six months ended June 30,
2022 and June 30, 2021 include Share-based compensation
expense.
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 June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Adjusted Net Loss
Net loss attributable to Rush Street
Interactive, Inc. – diluted1
$
(8,332
)
$
(3,767
)
$
(23,029
)
$
(13,353
)
Adjustments:
Net loss attributable to non-controlling
interests
(20,014
)
(10,187
)
(57,587
)
(10,246
)
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
3,880
4,661
7,817
16,237
Adjusted Net Loss
$
(24,466
)
$
(9,293
)
$
(72,799
)
$
(25,855
)
Adjusted Weighted Average Common Shares
Outstanding
Weighted average common shares outstanding
– diluted2
63,976,146
59,163,547
62,889,746
55,452,029
Adjustments:
Conversion of weighted average RSILP Units
to Class A Common Shares
156,004,353
160,000,000
157,011,313
160,000,000
Adjusted Weighted Average Common Shares
Outstanding
219,980,499
219,163,547
219,901,059
215,452,029
Net loss per common share attributable to
Rush Street Interactive, Inc. – diluted:
$
(0.13
)
$
(0.06
)
$
(0.37
)
$
(0.24
)
Adjusted Net Loss per Share
$
(0.11
)
$
(0.04
)
$
(0.33
)
$
(0.12
)
1
Net loss attributable to Rush
Street Interactive, Inc. – diluted for the six months ended June
30, 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 June 30, 2021 or the three-and-six months ended
June 30, 2022.
2
Weighted average common shares
outstanding – diluted for the six months ended June 30, 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 June 30, 2021 or the three-and-six months ended June
30, 2022.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220804005902/en/
Media Contact: Lisa Johnson (609) 788-8548
lisa@lisajohnsoncommunications.com
Investor Contact: ir@rushstreetinteractive.com
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