Rush Street Interactive Posts Impressive 2023 Performance and Optimistic 2024 Projections

The Chicago-based company reported a 17% year-over-year increase in fourth-quarter revenue, reaching $194 million, and an annual revenue of $691 million for 2023, marking a consistent 17% growth.

Fourth Quarter Financial Highlights

The fourth quarter of 2023 was marked by remarkable achievements for RSI, with revenue soaring to $193.9 million, a 17% increase from the previous year’s $165.5 million. The period saw a reduction in net loss to $5.5 million, a significant improvement from the $31.1 million net loss recorded in the fourth quarter of 2022. Adjusted EBITDA also witnessed a remarkable turnaround, with an $11.5 million profit compared to the prior year’s $17.3 million loss. This improvement is partly attributed to a 45% reduction in adjusted advertising and promotions expense, which stood at $34.6 million.

RSI continued to see growth in its Monthly Active Users (MAU), with a 7% year-over-year increase in the United States and Canada, reaching approximately 160,000. Latin America, including Mexico, saw a significant 33% increase in MAUs, totaling approximately 204,000. The Average Revenue per Monthly Active User (ARPMAU) also saw an uptick, with a 5% increase in the United States and Canada and a notable 28% increase in Latin America.

Year 2023 Review and 2024 Projections

The full year 2023 was a period of solid growth and recovery for RSI, with total revenue hitting $691.2 million, a 17% increase from 2022. The net loss was considerably narrowed to $60.1 million from the previous year’s $134.3 million. Adjusted EBITDA improved significantly, turning a $91.8 million loss in 2022 into an $8.2 million profit in 2023. The company’s strategic adjustments also led to a 27% decrease in adjusted advertising and promotions expense, amounting to $158.4 million for the year.

Buoyed by strong performance in Q4 2023, RSI is setting its sights high for 2024, with revenue guidance projected between $770 and $830 million, which would represent a 16% growth at the midpoint. Adjusted EBITDA expectations are set ambitiously between $35 and $45 million, anticipating over 390% growth year-over-year at the midpoint. These projections are grounded in current operations and the company’s proven track record in existing markets.

Our Comment on the Article

Rush Street Interactive’s robust performance in 2023 and optimistic outlook for 2024 underline its resilient business model and strategic market positioning. The company’s ability to adapt to market dynamics, coupled with a focus on customer engagement and operational efficiency, has paved the way for sustained growth. As RSI continues to expand its footprint and innovate within the online gaming and sports betting sectors, it remains a compelling story of success within the competitive landscape.