Rush Street Interactive (RSI) Tops Q4 EPS by 31c, Revenues Beat; Raises FY21 Revenues Guidance Above Consensus

Rush Street Interactive (NYSE: RSI) reported Q4 EPS of ($0.01), $0.31 better than the analyst estimate of ($0.32). Revenue for the quarter came in at $100 million versus the consensus estimate of $94.37 million.

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.

GUIDANCE:

Rush Street Interactive sees FY2021 revenue of $420-460 million, versus the consensus of $372.04 million.

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.

This range is based on certain assumptions, including that (i) all professional and college sports calendars that have been announced come to fruition, including the commencement of their 2020 to 2021 seasons, (ii) we continue to operate in states in which we are live today, and (iii) we do not launch operations in any new jurisdictions.

For earnings history and earnings-related data on Rush Street Interactive (RSI) click here.

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