Rush Street Interactive Announces Third Quarter 2021 Results and Raises Full Year 2021 Guidance
Rush Street Interactive reported third quarter 2021 revenue of $122.9 million, marking a 57% year-over-year increase compared to $78.2 million in Q3 2020. The net loss narrowed to $18.9 million from $26.5 million in the previous year. Adjusted EBITDA loss was $12.2 million. RSI raised its full-year revenue guidance to between $480 and $500 million, projecting a 76% increase from $278.5 million in 2020. The company highlighted expansion in markets such as Connecticut and New York, with awards and recognitions underscoring its growing presence in the industry.
- Revenue increased by 57% year-over-year to $122.9 million.
- Full-year 2021 revenue guidance raised to $480 - $500 million, indicating strong growth prospects.
- Net loss decreased from $26.5 million in Q3 2020 to $18.9 million in Q3 2021.
- Strong growth in Real-Money Monthly Active Users (MAUs), up 26% year-over-year.
- Recognition in the industry with 'Sportsbook of the Year' award.
- Adjusted EBITDA loss of $12.2 million compared to a profit in Q3 2020.
- High adjusted advertising and promotions expense of $45.4 million, representing 37% of revenue.
- Third Quarter Revenue of
- Full Year 2021 Revenue Guidance Raised to between
Third Quarter 2021 Financial Highlights
-
Revenue was
$122.9 million 57% , compared to$78.2 million -
Net loss was
$18.9 million $26.5 million -
Adjusted EBITDA1 loss was
$12.2 million $1.0 million -
Adjusted advertising and promotions expense1 was
$45.4 million 37% of revenue, during the third quarter of 2021, compared to$17.5 million -
Real-Money Monthly Active Users (“MAUs”) in
the United States for the third quarter of 2021 were up26% year-over-year with average revenue per MAU (“ARPMAU”) of$380 -
As of
September 30, 2021 , RSI had$347 million
“In addition to growing our current markets, we have worked to expand our bet offerings to existing customers. Single-game-parlay markets are now live in all of our sports betting states and we have launched BetRivers.com and PlaySugarHouse.com branded, live-casino studios for players in
“Our solid execution is also being recognized within our industry. We were recently awarded ‘Sportsbook of the Year' at the SBC Latinoamérica Awards 2021 and shortlisted for ‘Casino Operator of the Year,’ ‘Social Operator of the Year’ and ‘Leader of the Year’ at the
Increasing 2021 Revenue Guidance
RSI expects revenues for the full year ending
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 2021 seasons, and (iii) RSI continues to operate in markets in which it is live today.
Recent Business Highlights
-
Launched PlaySugarHouse online sportsbook in
Connecticut , along with four of the fifteen planned retail sportsbooks, as the exclusive sportsbook partner of theConnecticut Lottery , and as one of just three permitted online operators in the state. -
Launched online sports betting in
Arizona via our partnership with the Arizona Rattlers. RSI will serve as the team’s operating partner for online sports betting, having secured one of the ten sports wagering licenses in the state. -
Entered the Canadian market early with the launch of our social gaming platform, CASINO4FUN®, in the province of
Ontario at BetRivers.net. -
Selected by the
State of New York as one of only nine operators that are licensed to offer mobile sports wagering in the state. -
Awarded Sportsbook of the Year at the SBC Awards Latinoamérica and shortlisted for three
SBC North America awards includingCasino Operator , Social Operator, and Leader of the Year. -
Announced an exclusive partnership with
Magic City Jai-Alai to offer sports betting on the fast-action sport of jai alai. -
Launched BetRivers.com and PlaySugarHouse.com branded, live-casino studios for players in
Pennsylvania andNew Jersey . -
Formed brand ambassador partnerships with tennis great and respected TV tennis analyst,
James Blake , and three-timeSuper Bowl champion and NFL broadcasting veteran,Mark Schlereth . -
Launched “CityCasts,™”city-specific sports betting audio and video podcasts in major cities across the
U.S. for BetRivers and PlaySugarHouse brands. -
Partnered with the
American Gaming Association's Have A Game Plan.® Bet Responsibly.™ Campaign focused on educating sports fans about the core principles of responsible sports betting.
Technology Updates
-
RSI mobile sportsbook app independently rated #3 out of 35 apps in the U.S. market in
October 2021 by Eilers & Krejcik. - Remain on track to launch our integrated iOS sportsbook-casino app by year end.
- Offering single-game-parlays in all of our online sports betting jurisdictions.
- Launched RushArena™, a proprietary multi-player tournament engine that advances the quality of our online casino player experience.
Earnings Conference Call and Webcast Details
RSI will host a conference call and audio webcast today at
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 309541.
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
About
RSI is a trusted online gaming and sports entertainment company focused on regulated markets in
Non-GAAP Financial Measures
In addition to providing financial measurements based on accounting principles generally accepted in
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
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 players 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 our customer base for the applicable period of measurement, there are inherent challenges in measuring usage and engagement with respect to our online offerings across our 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
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.
|
||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
Revenue |
$ |
122,920 |
|
|
$ |
78,237 |
|
|
$ |
357,540 |
|
|
$ |
178,452 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating costs and expenses |
|
|
|
|
|
|
|
|||||||||
Costs of revenue |
|
81,221 |
|
|
|
47,107 |
|
|
|
245,668 |
|
|
|
118,774 |
|
|
Advertising and promotions |
|
46,077 |
|
|
|
17,506 |
|
|
|
125,836 |
|
|
|
33,421 |
|
|
General administration and other |
|
12,318 |
|
|
|
39,650 |
|
|
|
40,650 |
|
|
|
114,815 |
|
|
Depreciation and amortization |
|
1,007 |
|
|
|
452 |
|
|
|
2,595 |
|
|
|
1,368 |
|
|
Total operating costs and expenses |
|
140,623 |
|
|
|
104,715 |
|
|
|
414,749 |
|
|
|
268,378 |
|
|
Loss from operations |
|
(17,703 |
) |
|
|
(26,478 |
) |
|
|
(57,209 |
) |
|
|
(89,926 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Other income (expenses) |
|
|
|
|
|
|
|
|||||||||
Interest expense, net |
|
(11 |
) |
|
|
(16 |
) |
|
|
(41 |
) |
|
|
(101 |
) |
|
Change in fair value of warrant liabilities |
|
— |
|
|
|
— |
|
|
|
41,802 |
|
|
|
— |
|
|
Change in fair value of earnout interests liability |
|
— |
|
|
|
— |
|
|
|
(13,740 |
) |
|
|
— |
|
|
Total other income (expenses) |
|
(11 |
) |
|
|
(16 |
) |
|
|
28,021 |
|
|
|
(101 |
) |
|
Loss before income taxes |
|
(17,714 |
) |
|
|
(26,494 |
) |
|
|
(29,188 |
) |
|
|
(90,027 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Income tax expense |
|
1,225 |
|
|
|
— |
|
|
|
3,781 |
|
|
|
— |
|
|
Net loss |
$ |
(18,939 |
) |
|
$ |
(26,494 |
) |
|
$ |
(32,969 |
) |
|
$ |
(90,027 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Net loss attributable to non-controlling interests |
|
(13,639 |
) |
|
|
— |
|
|
|
(23,885 |
) |
|
|
— |
|
|
Net loss attributable to |
$ |
(5,300 |
) |
|
$ |
(26,494 |
) |
|
$ |
(9,084 |
) |
|
$ |
(90,027 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Net loss per common share attributable to |
$ |
(0.09 |
) |
|
|
N/A |
|
|
$ |
(0.16 |
) |
|
|
N/A |
|
|
Weighted average common shares outstanding – basic |
|
59,191,384 |
|
|
|
N/A |
|
|
|
55,148,218 |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net loss per common share attributable to |
$ |
(0.09 |
) |
|
|
N/A |
|
|
$ |
(0.33 |
) |
|
|
N/A |
|
|
Weighted average common shares outstanding – diluted |
|
59,191,384 |
|
|
|
N/A |
|
|
|
56,488,691 |
|
|
|
N/A |
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
Net loss |
$ |
(18,939 |
) |
|
$ |
(26,494 |
) |
|
$ |
(32,969 |
) |
|
$ |
(90,027 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive loss |
|
|
|
|
|
|
|
|||||||||
Foreign currency translation adjustment |
|
(168 |
) |
|
|
(134 |
) |
|
|
(1,060 |
) |
|
|
(444 |
) |
|
Comprehensive loss |
$ |
(19,107 |
) |
|
$ |
(26,628 |
) |
|
$ |
(34,029 |
) |
|
$ |
(90,471 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Comprehensive loss attributable to non-controlling interests |
|
(13,762 |
) |
|
|
— |
|
|
|
(24,685 |
) |
|
|
— |
|
|
Comprehensive loss attributable to |
$ |
(5,345 |
) |
|
$ |
(26,628 |
) |
|
$ |
(9,344 |
) |
|
$ |
(90,471 |
) |
|
|
||||||||||||||||
|
||||||||||||||||
Adjusted EBITDA: |
||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
Net loss |
$ |
(18,939 |
) |
|
$ |
(26,494 |
) |
|
$ |
(32,969 |
) |
|
$ |
(90,027 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense, net |
|
11 |
|
|
|
16 |
|
|
|
41 |
|
|
|
101 |
|
|
Income tax expense |
|
1,225 |
|
|
|
— |
|
|
|
3,781 |
|
|
|
— |
|
|
One-time payment from Affiliated casino |
|
— |
|
|
|
(9,000 |
) |
|
|
— |
|
|
|
(9,000 |
) |
|
Depreciation and amortization |
|
1,007 |
|
|
|
452 |
|
|
|
2,595 |
|
|
|
1,368 |
|
|
Change in fair value of warrant liability |
|
— |
|
|
|
— |
|
|
|
(41,802 |
) |
|
|
— |
|
|
Change in fair value of earnout interests liability |
|
— |
|
|
|
— |
|
|
|
13,740 |
|
|
|
— |
|
|
Share-based compensation expense |
|
4,468 |
|
|
|
36,023 |
|
|
|
20,705 |
|
|
|
103,282 |
|
|
Adjusted EBITDA |
$ |
(12,228 |
) |
|
$ |
997 |
|
|
$ |
(33,909 |
) |
|
$ |
5,724 |
|
|
Adjusted Operating Costs and Expenses: |
||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
GAAP operating costs and expenses: |
|
|
|
|
|
|
|
|||||||||
Costs of revenue |
$ |
81,221 |
|
|
$ |
47,107 |
|
|
$ |
245,668 |
|
|
$ |
118,774 |
|
|
Advertising and promotions |
|
46,077 |
|
|
|
17,506 |
|
|
|
125,836 |
|
|
|
33,421 |
|
|
General administration and other |
|
12,318 |
|
|
|
39,650 |
|
|
|
40,650 |
|
|
|
114,815 |
|
|
Depreciation and amortization |
|
1,007 |
|
|
|
452 |
|
|
|
2,595 |
|
|
|
1,368 |
|
|
Total operating costs and expenses |
$ |
140,623 |
|
|
$ |
104,715 |
|
|
$ |
414,749 |
|
|
$ |
268,378 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP operating cost and expense adjustments: |
|
|
|
|
|
|
|
|||||||||
Costs of revenue1 |
$ |
(298 |
) |
|
$ |
9,000 |
|
|
$ |
(1,511 |
) |
|
$ |
9,000 |
|
|
Advertising and promotions2 |
|
(637 |
) |
|
|
— |
|
|
|
(2,971 |
) |
|
|
— |
|
|
General administration and other2 |
|
(3,533 |
) |
|
|
(36,023 |
) |
|
|
(16,223 |
) |
|
|
(103,282 |
) |
|
Depreciation and amortization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total non-GAAP operating cost and expense adjustments |
$ |
(4,468 |
) |
|
$ |
(27,023 |
) |
|
$ |
(20,705 |
) |
|
$ |
(94,282 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted operating costs and expenses: |
|
|
|
|
|
|
|
|||||||||
Costs of revenue |
$ |
80,923 |
|
|
$ |
56,107 |
|
|
$ |
244,157 |
|
|
$ |
127,774 |
|
|
Advertising and promotions |
|
45,440 |
|
|
|
17,506 |
|
|
|
122,865 |
|
|
|
33,421 |
|
|
General administration and other |
|
8,785 |
|
|
|
3,627 |
|
|
|
24,427 |
|
|
|
11,533 |
|
|
Depreciation and amortization |
|
1,007 |
|
|
|
452 |
|
|
|
2,595 |
|
|
|
1,368 |
|
|
Total adjusted operating costs and expenses |
$ |
136,155 |
|
|
$ |
77,692 |
|
|
$ |
394,044 |
|
|
$ |
174,096 |
|
|
-
Non-GAAP Operating Costs and Expense Adjustments for the three and nine months ended
September 30, 2021 include Share-based compensation, while Non-GAAP Operating Costs and Expense Adjustments for the three and nine months endedSeptember 30, 2020 include a one-time payment from Affiliated casino. - Share-based compensation.
|
||||||||
|
||||||||
Adjusted Net Loss, Adjusted Weighted Average Common Shares Outstanding and Adjusted Net Loss Per Share: |
||||||||
|
Three Months
|
|
Nine Months
|
|||||
Adjusted Net Loss |
|
|
|
|||||
Net loss attributable to |
$ |
(5,300 |
) |
|
$ |
(18,653 |
) |
|
Adjustments: |
|
|
|
|||||
Add: Net loss attributable to non-controlling interests |
|
(13,639 |
) |
|
|
(23,885 |
) |
|
Less: Change in fair value of warrant liabilities attributable to noncontrolling interests |
|
— |
|
|
|
(32,233 |
) |
|
Add: Change in fair value of earnout interests liability |
|
— |
|
|
|
13,740 |
|
|
Add: Share-based compensation expense |
|
4,468 |
|
|
|
20,705 |
|
|
Adjusted Net Loss |
$ |
(14,471 |
) |
|
$ |
(40,326 |
) |
|
|
|
|
|
|||||
Adjusted Weighted Average Common Shares Outstanding |
|
|
|
|||||
Weighted average common shares outstanding – diluted2 |
|
59,191,384 |
|
|
|
56,488,691 |
|
|
Adjustments: |
|
|
|
|||||
Add: Conversion of weighted average RSILP units to Class A Common Shares |
|
159,986,105 |
|
|
|
159,335,977 |
|
|
Adjusted Weighted Average Common Shares Outstanding |
|
219,177,489 |
|
|
|
215,824,668 |
|
|
|
|
|
|
|||||
Net loss per common share attributable to |
$ |
(0.09 |
) |
|
$ |
(0.33 |
) |
|
Adjusted Net Loss per Share |
$ |
(0.07 |
) |
|
$ |
(0.19 |
) |
|
-
Net loss attributable to
Rush Street Interactive, Inc. – diluted for the nine months endedSeptember 30, 2021 , includes the Net loss attributable toRush Street Interactive, Inc. adjusted for the dilutive effect of previously outstanding warrants that were redeemed inMarch 2021 (i.e., the portion of the change in fair value of warrants attributed toRush Street Interactive Inc. ). There was no dilutive effect for the three months endedSeptember 30, 2021 . -
Weighted average common shares outstanding – diluted for the nine months ended
September 30, 2021 , includes the basic number of weighted average common shares outstanding, adjusted for the dilutive effect of previously outstanding warrants that were redeemed inMarch 2021 using the Treasury Stock Method. There was no dilutive effect for the three months endedSeptember 30, 2021 .
View source version on businesswire.com: https://www.businesswire.com/news/home/20211110006275/en/
Media Contacts:
(312) 319-9233 / (212) 257-4170
rsi@gasthalter.com
or
(609) 788-8548
lisa@lisajohnsoncommunications.com
Investor Contact:
ir@rushstreetinteractive.com
Source:
FAQ
What was Rush Street Interactive's revenue for Q3 2021?
How much did RSI raise its full-year 2021 revenue guidance?
What was the net loss for Rush Street Interactive in Q3 2021?
How did Real-Money Monthly Active Users change in Q3 2021?
What award did Rush Street Interactive win recently?
