Rush Street Interactive (RSI) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $232.1 million, up 37% year-over-year, with strong growth in iCasino and sports betting across US, Canada, and Latin America.

• Net income reached $3.2 million, reversing a net loss of $13.4 million in Q3 2023, reflecting improved operational efficiency.

• Adjusted EBITDA rose to $23.4 million, more than fivefold increase from $4.1 million last year, highlighting significant margin improvement.

• Full-year 2024 guidance raised: revenue to $900–$920 million (midpoint $910 million), Adjusted EBITDA to $82–$86 million (midpoint $84 million).

• Board authorized a $50 million share repurchase program, reflecting confidence in financial position and future prospects.

Financial highlights

• Q3 2024 revenue: $232.1 million, up from $169.9 million in Q3 2023; nine-month revenue: $669.9 million, up from $497.3 million year-over-year.

• Net income for Q3 2024: $3.2 million, compared to a net loss of $13.4 million in Q3 2023; nine-month net income: $0.7 million, compared to a net loss of $54.6 million year-over-year.

• Adjusted EBITDA for Q3 2024: $23.4 million, up from $4.1 million in Q3 2023; nine-month Adjusted EBITDA: $61.9 million, compared to a loss of $3.3 million year-over-year.

• Unrestricted cash and cash equivalents stood at $216 million as of September 30, 2024, with no outstanding debt.

• Advertising and promotions expense rose 13% to $38.6 million, but as a percentage of revenue, decreased to 17% from 20% year-over-year.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $900–$920 million (midpoint $910 million, up $30 million from prior guidance).

• Full-year 2024 Adjusted EBITDA guidance raised to $82–$86 million (midpoint $84 million, up $16 million and 24%).

• Guidance includes only currently live markets and expects continued improvement in gross margins and leverage over marketing and G&A costs into 2025.

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

• Ongoing rationalization of marketing spend and continued investment in product development and market expansion are anticipated.