Rush Street Interactive (NYSE: RSI) reported Q1 EPS of ($0.08), $0.02 better than the analyst estimate of ($0.10). Revenue for the quarter came in at $111.8 million versus the consensus estimate of $96.27 million.

First Quarter 2021 Financial Highlights

Revenue was $111.8 million during the first quarter of 2021, an increase of 218%, compared to $35.2 million during the first quarter of 2020.
Net loss was $76 thousand during the first quarter of 2021, compared to a net loss of $12.9 million during the first quarter of 2020.
Adjusted EBITDA1 was $(15.1) million during the first quarter of 2021, compared to an Adjusted EBITDA of $1.1 million during the first quarter of 2020.
Advertising and promotions expense was $40.5 million, or 36% of revenue, during the first quarter of 2021, compared to $8.5 million during the first quarter of 2020.
Real-Money Monthly Active Users (“MAUs”) in the United States for the first quarter of 2021 were up 166% year-over-year and 20% sequentially from the fourth quarter of 2020, with average revenue per MAU (“ARPMAU”) of $302 during the first quarter of 2021.
As of March 31, 2021, RSI had $363 million of unrestricted cash and cash equivalents.

Greg Carlin, Chief Executive Officer of RSI, said, “We are excited about our strong first quarter results, during which we launched online casino and sportsbook in Michigan and online sportsbook in Virginia, and delivered revenue growth of 218% over last year’s first quarter. We are also pleased by our quarter-on-quarter growth, underpinned by our strong and stable casino results.

We continue to have solid momentum as we launched online casino in West Virginia in April and are now live in the four largest US online casino markets which we expect to drive significant profitability over the long term.

Additionally, due to our strong cash position, we were able to increase our marketing spend in 2021. Short average payback periods of only 6 months provide confidence in our ability to effectively increase marketing spend while driving continued strong growth in revenue and MAUs. As a result, we are increasing our 2021 revenue guidance.”

GUIDANCE:

Rush Street Interactive sees FY2021 revenue of $440-480 million, versus the consensus of $442.34 million.

Increasing 2021 Revenue Guidance

RSI expects revenues for the full year ending December 31, 2021 to be between $440 and $480 million, up from its previous guidance of between $420 and $460 million. At the midpoint of the range, revenue of $460 million represents 65% year-over-year growth when compared to $278.5 million of revenues for 2020. This increase reflects RSI’s strong Q1 2021 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) launch of operations in any new jurisdictions are not included, (ii) all professional and college sports calendars that have been announced come to fruition, including the completion or commencement of their 2020 to 2021 seasons, and (iii) RSI continues to operate in states in which it is live today.

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