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  • Q4 2023: Rush Street Interactive shares jump 15% on strong results
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Shares in Rush Street Interactive are trading higher after the business reported a 17.1% year-on-year increase in revenue to $193.9m in Q4.

That figure left the business with adjusted EBITDA of $11.5m, compared to an adjusted EBITDA loss of $17.3m in the prior-year period.

Still, the business declared a net loss of $5.5m for the quarter, though that represented a significant improvement from the $31.1m net loss reported in Q4 2022.

The improved results were driven by a combination of an increase in monthly active users and their average spend, alongside a reduction in advertising and promotions expenses.

In the US, the number of monthly active users grew around 7% to 160,000 while the average monthly revenue per user increased 5% to $345.

In Latin America, the number of monthly active users grew by 33% to around 204,000, while the average monthly revenue per user increased 28% to $42.

Meanwhile, quarterly advertising and promotions expenses fell by 44.8% to $35.1m

Full-year 2023 results

For the full-year 2023, Q4’s results brought the operator’s total revenue to $691.2m, up 16.7% on 2022.

Adjusted EBITDA for the year came in at $8.2m, compared to an adjusted EBITDA loss of $91.8m in 2022.

The business declared an overall net loss for the year of $60.1m, down from a $134.3m net loss in 2022.

As at the end of the reporting period, the firm held unrestricted cash and cash equivalents of $168m.

“We concluded 2023 with a fourth quarter that produced records in both revenues and adjusted EBITDA,” said RSI CEO Richard Schwartz. 

“These results and the ensuing momentum have carried into strong guidance for the new year, reflecting our longstanding customer-centric principles and obsession with developing innovative and differentiated user experiences.

“With a substantial cash balance and no debt, our financial wherewithal provides us the luxury of being able to continue executing on our long-term strategy and investing appropriately in new markets.”

2024 guidance

RSI is now pointing towards full-year revenue of between $770m and $830m in 2024.

That range would represent a year-on-year growth rate of 16% at its midpoint.

The business also expects adjusted EBITDA of between $35m and $45m this year, which would be a substantial 390% improvement at the range’s midpoint.

Those expectations are based on the assumption that the business will remain active only in the jurisdictions where it is already live.

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