Rush Street Interactive enters 2023 with 20% revenue growth in Q1
BetRivers and PlaySugarHouse operator narrows adjusted EBITDA, net losses and advertising expenditure in first three months of year
Rush Street Interactive (RSI) has reported a 20% year-on-year (YOY) increase in its revenue for Q1 2023 to $162.4m, surpassing the $134.9m generated during the same period of 2022.
Delivering its latest financial update, the BetRivers and PlaySugarHouse operator revealed a 53% YOY reduction in its net losses during Q1, which fell to $24.5m in the period.
RSI’s adjusted EBITDA losses shrank substantively during Q1 2023, reducing by 80% YOY to a negative $8.7m from a prior Q1 2022 high of negative $43.4m.
The firm’s adjusted advertising and promotional expenditure also decreased sharply year on year, falling by a quarter to $49.4m in Q1 2023.
RSI’s average revenue per monthly active user (ARPMAU) grew to $325 during Q1 2023, rising 23% on a YOY basis.
The BetRivers and PlaySugarHouse operator confirmed that its revenue grew by more than 100% YOY in its Latin American and North American markets, which launched after 2020.
In addition, RSI referenced continued profitable growth in its casino markets, including Ontario, Colombia, and West Virginia, where the firm increased market share during Q1.
RSI CEO Richard Schwartz cited the “great strides” the firm has made towards profitability during the quarter, singling out the adjusted EBITDA performance as being much improved in Q1.
“Revenues grew 20% compared to last year, propelled by more than 100% growth in Latin America and new markets launched in North America after 2020. Results were strong across our business lines with revenue growth in both online casino and online sportsbook,” Schwartz said.
“On the back of these excellent results, we remain on track to achieving our goal of profitability for the second half of this year. We are staying disciplined in our approach and successfully balancing growth and profitability over the long run.
“Our results continue to show the approach is working well and we remain confident that our focused strategy will reward our shareholders over the long term,” he added.
RSI has said its 2023 revenue target of between $630m and $700m is unchanged following its Q1’s results, with midpoint revenue growth of 12% YOY when compared to $592m revenue in 2022.