Rush Street Interactive Q4 Results Lead to Optimistic 2024 Outlook
LISTEN TO THIS ARTICLE:Rush Street Interactive (RSI), the online casino operator, has announced its Q4 results for 2023 achieving revenue of $194 million, showing a 17% year-over-year increase. The final quarter of the year reflects a continuing trend for the year with earnings for 2023 up 17% to $691 million in comparison to the previous year.
Additionally, the statement highlighted the key indicator of adjusted EBITDA had shown substantial improvement on the previous year, with figures reaching $11.5 million in Q4 and $8.2 million for the full year.
The business reported a Net Loss for the year, but senior leadership at RSI was optimistic about the company’s prospects in 2024. It has set guidance for 2024 revenue at between $770 and $830 million and adjusted EBITDA between $35 and $45 million.
We concluded 2023 with a fourth quarter that produced records in both revenues and adjusted EBITDA. For the year, we grew revenue to $691 million on strong customer engagement and retention. 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.
Q4 Net Loss Continues Reduction
RSI still showed a Net Loss in the fourth quarter of 2023 at $5.5 million, which is significantly reduced from $31.1 million in a year-on-year comparison for the same quarter in 2022.
The company explained one of the reasons for the net loss reduction is that RSI enjoyed an increase in Q4 revenue while lowering marketing and advertising costs, which stood at $34.6 million, down 45% from $63.2 million for the same period in the previous year.
We exceeded the high end of our revenue guidance for the year and achieved EBITDA profitability far ahead of our targets. Through strong execution by our team, we improved year-over-year EBITDA by $100 million. We initially set out to be profitable for the second half of 2023, though, as a result of our focused efforts, we delivered better results and were profitable for the full year.
RSI Looks to LatAm Region for Continued Expansion
One of the highlights of the business for 2023 was growth in the markets in Latin America, with revenue up by more than 50%. RSI outlined the countries in the LatAm gambling region where it expects to achieve expansion in 2024, including revenue in Colombia and Mexico where earnings increased by more than 60% in both regions last year.
The statement also mentioned opportunities in the Brazilian markets following recent changes in gaming legislation in the jurisdiction. RSI states it will focus on this market, as well as looking towards expansion into the gaming markets in Peru.
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