Rush Street Interactive (RSI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $220.4 million, up 34% year-over-year, with record adjusted EBITDA of $21.4 million and net loss narrowing to $0.3 million from $16.7 million last year.

• Strong growth was driven by iCasino (over 40% growth) and online sports betting (over 25% growth), with accelerating MAU growth in North America (24%) and Latin America (79%).

• Revenue diversification continued, with 59% of revenue now from markets outside Illinois and Pennsylvania, and nine markets posting over 50% year-over-year online revenue growth.

• Delaware iCasino revenue more than quadrupled versus prior operator, and Latin America contributed 15% of revenue, with Colombia as the main driver and Mexico showing promising growth.

• The company operates in 15 U.S. states and four international markets, with continued expansion into Peru and enhanced customer service metrics.

Financial highlights

• Q2 2024 revenue: $220.4 million, up 34% year-over-year; six-month revenue: $437.8 million.

• Adjusted EBITDA: $21.4 million, up from $1.2 million in Q2 2023; six-month Adjusted EBITDA: $38.5 million.

• Net loss for Q2 2024 was $0.3 million, a significant improvement from $16.7 million in Q2 2023.

• Adjusted net income for Q2 2024 was $9.4 million, compared to a loss of $9.2 million in Q2 2023.

• Cash and cash equivalents stood at $194 million as of June 30, 2024, with no outstanding debt.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $860–$900 million (midpoint $880 million, up $45 million from prior guidance).

• Full-year 2024 adjusted EBITDA guidance raised to $64–$72 million (midpoint $68 million, up $13 million and 24%).

• Guidance includes only currently live markets and factors in the Illinois tax increase and Peru launch costs.

• Management expects existing cash and cash flows from operations to fund activities and capital expenditures for at least the next 12 months.

• Q4 expected to be the high watermark for both revenue and potentially EBITDA.