RSI Posted Q4, Full-Year 2022 Revenue Growth, Loss Increased

Online gaming and sports betting operator Rush Street Interactive, Inc. (RSI) published its financial report for the fourth quarter of 2022 and the full year ended December 31, 2022, posting revenue increases of 27% and 21%, respectively.

Strong Revenue Growth

RSI generated in the last business quarter of 2022 revenue of $165.5 million to contribute to a full-year 2022 revenue of $592.2 million. For comparison, in Q4 2021 the Chicago-based gaming company registered revenue of $130.6 million, while for the full year, it amounted to $488.1 million.

Commenting on the results, Richard Schwartz, chief executive officer of RSI, outlined that the strong quarter and record results for the year were driven by a growth of 95% in RSI’s Latin American and new North American markets the company had launched operations after 2020.

Net Loss, Negative Adjusted EBITDA

The company’s net loss in Q4 2022 was $31.1 million, registering a decrease of 18.4% from $38.1 million in the fourth quarter of 2021. Quarterly adjusted EBITDA was a loss of $17.3 million, down 44.6% from the adjusted EBITDA loss of $31.2 million in Q4 2021.

For the full year, net loss significantly increased to reach $134.4 million, up 88.9% from $71.1 million in the year prior. Consequently, full-year adjusted EBITDA came at negative $91.8 million to register an increase of 41% from $65.1 million in 2021.

“We expect to achieve positive Adjusted EBITDA for the second half of 2023 and continue to be selective as we prioritize investments in markets with higher returns,” Schwartz said.

2023 Revenue Guidance

RSI used the report to initiate revenue guidance for the full year 2023, expecting to achieve revenue of between $630 million and $700 million, based on certain assumptions, including professional and college sports calendars remaining intact, the company maintaining operations in all jurisdictions it operates now, and that results from new jurisdiction launches are excluded.

“Looking forward, we will continue to focus on earning and retaining customer loyalty, by treating them well, being thoughtful, developing seamless experiences and reducing friction at every possible point. We have built our proprietary platform and culture around a disciplined operating philosophy, which is reflected in our results,” Schwartz concluded in his comments.

Other Financial Highlights

RSI noted that its adjusted advertising and promotions expenses in the fourth quarter marginally dropped to $63.2 million, as compared to $64 million in the respective quarter of 2021, while for the full year, there was an increase of 16.9% to $218.4 million ($186.9 million in 2021).

The number of real-money monthly active users increased proportionally in the quarter and the year: 22% in Q4 and 29% in full-year 2022, allowing RSI to register average revenue per monthly active user of $327 in the fourth quarter and $315 during the year. The full-year result is down 9% year-over-year.  

At the end of the reported period, December 31, 2022, RSI’s cash balance stood at $180 million of unrestricted cash and cash equivalents.