Rush Street Interactive, Inc. ((RSI)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Rush Street Interactive, Inc. recently held its earnings call, revealing a positive sentiment driven by substantial growth in revenue, user engagement, and adjusted EBITDA. The company showcased strategic expansions and robust market performance in North America, although challenges in Colombia due to the VAT tax and a contraction in sports betting revenue were acknowledged.
Record Revenue Achievement
Rush Street Interactive reported a record revenue of $277.9 million, representing a 20% year-over-year increase. This marks the 10th consecutive quarter of sequential revenue growth, underscoring the company’s consistent upward trajectory.
Strong MAU Growth
The company experienced significant growth in monthly active users (MAUs), with a 34% year-over-year increase in North America, reaching 225,000 users. In Latin America, MAUs grew by 30%, totaling 415,000, indicating a strong user engagement across regions.
Significant Growth in North American Online Casino Markets
The North American online casino markets witnessed a remarkable 46% year-over-year growth in MAUs. Markets such as Delaware and Michigan showed impressive net revenue growth of 74% and 48%, respectively, highlighting the company’s strong foothold in these regions.
Improved EBITDA Performance
Adjusted EBITDA rose to $36 million, marking a 54% year-over-year increase. This improvement reflects significant operating leverage and efficient cost management, contributing to the company’s financial health.
Promising Expansion Plans
Rush Street Interactive announced exciting expansion plans into Alberta, leveraging its previous success in markets like Ontario. This strategic move is expected to further strengthen its market presence in Canada.
Colombia Revenue Decline
The company faced a 27% decline in net revenue in Colombia, primarily due to player bonusing related to the temporary VAT tax. This highlights the ongoing challenges in the Colombian market.
Sports Betting Revenue Contraction
Online sports betting revenue contracted by 16%, attributed to elevated bonusing in Colombia. This contraction underscores the impact of the challenging tax environment on the company’s sports betting segment.
Challenges with Colombian VAT Tax
The VAT tax environment in Colombia continues to pose challenges, affecting gross margins and revenue. The company is actively addressing these issues to mitigate their impact on financial performance.
Forward-Looking Guidance
Looking ahead, Rush Street Interactive has raised its full-year 2025 revenue guidance to between $1.1 billion and $1.12 billion, alongside an adjusted EBITDA guidance of $147 million to $153 million. This reflects a significant increase at the respective midpoints, showcasing the company’s optimistic outlook for future growth.
In conclusion, Rush Street Interactive’s earnings call conveyed a positive sentiment, driven by record revenue, robust user growth, and improved EBITDA performance. While challenges persist in Colombia, the company’s strategic expansions and strong market presence in North America position it well for continued success.