Rush Street Interactive announces fourth quarter and full year 2020 results

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ush Street Interactive on Wednesday announced financial results for the fourth quarter and full year ended December 31, 2020.

“We are proud to be reporting our first financial results as a public company. Throughout 2020, RSI continued its rapid expansion in both new and existing markets achieving revenue growth of 337%. We were the second largest online casino operator in the US for the fourth quarter and full year 2020 according to Eilers & Krejcik,” said Greg Carlin, Chief Executive Officer of RSI.

“We achieved these strong results with a modest 2020 marketing expense of $56.5 million. Our significant cash balance at year end plus the incremental cash from our ongoing warrant redemption will allow us to significantly increase 2021 marketing spend and leverage what we believe to be industry leading acquisition costs, payback rates, and average revenue per user. We are significantly increasing 2021 guidance and intend to aggressively pursue opportunities for further growth now that we are better capitalized than at any time in our operating history. We are confident these additional investments will support our goal of being the leader in online casino and driving significant profitability over the long term,” concluded Carlin.

Fourth Quarter 2020 Financial Highlights

• Revenue was $100.0 million during the fourth quarter of 2020, an increase of 260%, compared to $27.8 million during the fourth quarter of 2019.
• Net loss was $48.8 million during the fourth quarter of 2020, compared to a net loss of $15.1 million during the fourth quarter of 2019.1
• Advertising and promotions expense was $23.1 million, or 23% of revenue, during the fourth quarter of 2020, compared to $8.7 million during the fourth quarter of 2019.
• Adjusted EBITDA2 was $(1.3) million during the fourth quarter of each of 2020 and 2019.
  
  Real-Money Monthly Active Users (MAUs) in the United States for the fourth quarter of 2020 were up 116% year-over-year and 22% sequentially from the third quarter, with average revenue per MAU (“ARPMAU”) of $328 during the fourth quarter of 2020.
• As of December 31, 2020, RSI had $255 million of cash and cash equivalents.
  
  According to Eilers & Krejcik, RSI’s U.S. online casino was the second largest online casino operator as measured by gross gaming revenue (“GGR”) during the quarter.

Full Year 2020 Financial Highlights

• Revenue was $278.5 million during full year 2020, an increase of 337%, compared to $63.7 million during full year 2019.
• Net loss was $138.8 million during full year 2020, compared to a net loss of $22.5 million during full year 2019.1.
• Advertising and promotions expense was $56.5 million, or 20% of revenue, during full year 2020, compared to $28.3 million during 2019.
• Adjusted EBITDA2 was $4.4 million during full year 2020, compared to $(7.8) million during full year 2019.
• MAUs in the United States for the full year 2020 were up 165% year-over-year, with ARPMAU of $341 during the year.
• According to Eilers & Krejcik, RSI’s U.S. online casino was the second largest online casino operator as measured by GGR for the full year.

Increasing 2021 Revenue Guidance

RSI expects revenues for the full year ending December 31, 2021 to be between $420 and $460 million, up from our previous guidance of $320 million. At the midpoint of the range, revenue of $440 million represents 58% year-over-year expected revenue growth when compared to $278.5 million of revenues for 2020. This increase reflects our strong Q4 2020 results and anticipated growth in recently opened and existing markets resulting from increased marketing spend funded with cash on hand.

Recent Business Highlights

• In February 2021, secured online casino and sports betting market access in Ohio, Maryland and Missouri for up to 20 years, subject to license availability, state law and regulatory approvals.
• Launched online casino and sports betting in Michigan in January, with metrics continuing to improve. Average daily casino handle is up approximately 65% during the first week in March compared to January.
• Launched online sports betting in Virginia in January 2021.Now live with online casino in 3 states and sports betting in 8 states, up from online casino in 2 states and online sports betting in 3 states at the start of 2020.
• Secured online casino market access in West Virginia through an agreement with Century Casinos subject to state law and regulatory approvals. Operations are expected to commence in the second quarter of 2021.
• Entered into strategic marketing or sponsorship arrangements with the three-time NBA champion Detroit Pistons, hall of famer Jerome Bettis, legendary NBA coach George Karl and nine-time First Division/Premier League champions, Everton Football Club.
• Initiated the redemption of all of RSI’s publicly held warrants, which are exercisable for an aggregate of approximately 11.5 million shares of Class A common stock, at a price of $11.50 per share, representing approximately $132 million in incremental potential cash proceeds to RSI.
  
  Near Term Initiatives