Fourth-quarter earnings spark Rush Street Interactive surge

May 1, 2024 8:52 PM
  • David McKee, CDC Gaming Reports
May 1, 2024 8:52 PM
  • David McKee, CDC Gaming Reports
  • Latin America
  • United States
  • Mexico

Share prices of Rush Street Interactive stock leapt in after-hours trading on the strength of the company’s first-quarter numbers for this year. The share price went from $6.42 at the closing bell to $7.45 in after-hours trading.

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Revenue jumped to $217.4 million from $162.4 million a year earlier, a 34 percent increase. Losses were slimmed from $24.5 million to $2.2 million, while marketing expenses were trimmed from $49.4 million to $37.8 million over the same time frame.

Cash flow was $17.1 million, a $25.8 million improvement. The year prior saw a negative return on investment of $8.7 million. Rush Street reported cash on hand of $191 million.

Monthly active users in the United States and Canada grew 20 percent to 176,000. In Latin America and Mexico, they catapulted 70 percent to 224,000. The average revenue per user was $355 a month in North America and $43 per month south of the border.

CEO Richard Schwartz characterized himself as “extremely pleased,” saying Rush Street was “acquiring new players more efficiently, while simultaneously increasing the number and value of our users. Our team achieved these results from our long-standing unwavering commitment to prioritize the quality of our product and customer experience.”

Rush Street moved the midpoint of its revenue guidance $35 million higher, to between $810 million and $860 million for the full year. If achieved, those numbers would represent 21 percent year-over-year growth.

The cash-flow target was moved $15 million northward, to between $50 million and $60 million. A $55 million result would constitute a 573 percent improvement.