Rush Street Interactive revenue up 15% in Q2 on “strong growth” in Colombia
BetRivers and PlaySugarHouse operator reports positive adjusted EBITDA as well as narrowing net losses and advertising expenses
Rush Street Interactive (RSI) has reported a 15% year-on-year (YOY) increase in revenue for Q2 2023 to $165.1m, compared with the $143.7m generated during the same period of 2022.
Releasing its latest financial update, the BetRivers and PlaySugarHouse operator confirmed a 41% YOY drop in its net losses during Q2 2023, which slumped to $16.7m.
Adjusted EBITDA returned to positivity in Q2, rising to $1.2m from a Q2 2022 negative loss of $18.6m.
The firm’s adjusted advertising and promotional expenditure dipped on a YOY basis, falling from $44.2m in Q2 2022 to $40.4m in Q2 2023.
RSI’s average revenue per monthly active user (ARPMAU) in the US and Canada rose 11% YoY to $359.
As of June 30, 2023, RSI had $128m of unrestricted cash and cash equivalents available.
RSI CEO Richard Schwartz said: “Through the first half of the year the organization performed exceptionally well, achieving positive adjusted EBITDA ahead of schedule,” Schwartz said.
“This performance capped our strong first half with an adjusted EBITDA improvement of over $54m compared to the first half of the prior year.
“This increase in profitability was mainly driven by operational improvements, as well as 15% revenue growth, led by strong growth in Colombia and markets that we launched after 2020,” he added.
Speaking about the business trajectory going forward, Schwartz remained upbeat: “We have built a fundamentally strong business with a firm foundation,” he explained.
“Looking ahead, we are optimistic about our ability to innovate and continue to improve the quality of the user experience.
“With a solid financial position, a proprietary and scalable technology platform, and effective operational discipline, we are confident in our ability to continue executing successfully, positioning ourselves for further revenue and profitability growth in the future,” Schwartz added.
Following the disclosure of the results, RSI increased its full-year 2023 revenue target to land between $650m and $690m, up from a Q1 projection of between $630m and $700m.
At the midpoint of the range, revenue of $670m represents 13% YoY growth when compared to $592m in revenue for full-year 2022. RSI stock was up almost 4% in after-hours trading after closing the day at $3.71.