Rush Street Interactive, Inc. (RSI) Bundle
A Brief History of Rush Street Interactive, Inc.
Rush Street Interactive, Inc. (RSI), a prominent player in the online gaming industry, has experienced significant growth since its inception. Founded in 2012, the company has established itself as a leader in the development of online casino and sports betting platforms across North America and Latin America.
Financial Performance Overview
As of September 30, 2024, RSI reported a remarkable increase in revenue. The company generated $669.9 million in revenue for the nine months ended September 30, 2024, representing a 35% increase compared to $497.3 million for the same period in 2023. This growth was primarily attributed to the expansion into new markets, particularly Delaware, and increased engagement in existing markets.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Revenue | $669.9 million | $497.3 million | 35% |
| Costs of Revenue | $440.4 million | $333.2 million | 32% |
| Net Income (Loss) | $748 thousand | $(54.6 million) | 101% |
| Advertising and Promotions | $114.6 million | $125.5 million | (9%) |
| General and Administrative | $79.6 million | $64.6 million | 23% |
Market Expansion and Strategy
RSI has strategically expanded its market presence, launching its operations in Delaware after September 30, 2023. This expansion has contributed significantly to the revenue growth noted above. Furthermore, the company has focused on optimizing its marketing expenses, which led to a 9% decrease in advertising and promotions expenses to $114.6 million for the nine months ended September 30, 2024, compared to the previous year.
Operational Efficiency
The company has made strides in improving operational efficiency. For the nine months ended September 30, 2024, costs of revenue as a percentage of revenue decreased to 66% from 67% in 2023. This reduction is indicative of RSI's focus on managing operational costs while driving revenue growth.
Income Analysis
RSI's net income for the nine months ended September 30, 2024, was reported at $748 thousand, a significant turnaround from a net loss of $(54.6 million) in the same period in 2023. This improvement reflects the company's successful efforts to enhance operational efficiency and increase revenues.
| Income Statement Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Income (Loss) | $748 thousand | $(54.6 million) |
| Income from Operations | $12.2 million | $(48.1 million) |
| Interest Income, Net | $5.5 million | $1.4 million |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, RSI reported net cash provided by operating activities of $80.6 million, a substantial increase compared to a cash outflow of $(6.8 million) during the same period in 2023. This positive cash flow is largely a result of increased profitability and better management of working capital.
| Cash Flow Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Cash from Operating Activities | $80.6 million | $(6.8 million) |
| Net Cash Used in Investing Activities | $(26.2 million) | $(26.0 million) |
| Net Cash Used in Financing Activities | $(0.7 million) | $(0.4 million) |
Equity and Capital Structure
As of September 30, 2024, RSI had a total stockholders’ equity of $188.8 million, compared to $166.1 million at the end of the previous year. The increase in equity is attributed to the improved financial performance and retained earnings.
| Equity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Stockholders' Equity | $188.8 million | $166.1 million |
| Class A Common Stock Outstanding | 83,583,534 shares | 72,387,409 shares |
| Class V Common Stock Outstanding | 142,088,928 shares | 150,434,310 shares |
Rush Street Interactive, Inc. continues to leverage its strategic initiatives and operational efficiencies to drive growth and enhance shareholder value in the competitive online gaming landscape.
A Who Owns Rush Street Interactive, Inc. (RSI)
Ownership Structure
As of 2024, Rush Street Interactive, Inc. (RSI) has a dual-class share structure comprising Class A Common Stock and Class V Common Stock. The Class A shares are publicly traded, whereas Class V shares are primarily held by insiders and do not participate in earnings distributions.
Major Shareholders
The following table outlines the major shareholders of Rush Street Interactive, Inc. as of September 30, 2024:
| Shareholder | Share Class | Shares Held | Ownership Percentage |
|---|---|---|---|
| Neil Bluhm | Class V Common Stock | 83,583,534 | 36.5% |
| Greg Carlin | Class V Common Stock | 61,015,000 | 27.0% |
| Public Investors | Class A Common Stock | 72,387,409 | 31.5% |
| Other Insiders | Class V Common Stock | 15,000,000 | 5.0% |
Non-Controlling Interest
As of September 30, 2024, the non-controlling interest associated with the RSILP units was approximately 151,399,310 units, which may be exchanged for Class A Common Stock. The ownership structure reflects significant insider control, primarily through Class V shares, which carry enhanced voting rights.
Market Performance
RSI's stock performance has been notable in recent quarters. The company's revenue for the third quarter of 2024 was reported at $232.1 million, a 37% increase compared to $169.9 million in the same quarter in 2023. This growth can be attributed to the expansion into new markets and a robust online casino and sports betting segment.
Financial Overview
The following financial highlights illustrate RSI's performance for the nine months ended September 30, 2024:
| Financial Metric | Value |
|---|---|
| Revenue | $669.9 million |
| Net Income (Loss) | $748,000 |
| Cost of Revenue | $440.4 million |
| Advertising and Promotions | $114.6 million |
| General and Administrative Expenses | $79.6 million |
As of September 30, 2024, Rush Street Interactive, Inc. had total assets amounting to approximately $362.6 million, reflecting a solid financial position within the competitive online gaming landscape.
Rush Street Interactive, Inc. (RSI) Mission Statement
Overview of Mission Statement
Rush Street Interactive, Inc. (RSI) focuses on delivering an exceptional online gaming experience while maintaining a commitment to responsible gaming. The company aims to combine innovative technology with a user-friendly platform to provide a variety of gaming options including online casinos and sports betting.
Financial Performance Metrics
The financial metrics that reflect RSI's performance and align with its mission statement include revenue growth, profitability, and operational efficiency. The following table outlines key financial data for the nine months ended September 30, 2024, compared to the same period in 2023:
| Financial Metrics | 2024 (9 months) | 2023 (9 months) | % Change |
|---|---|---|---|
| Revenue | $669.9 million | $497.3 million | 35% |
| Net Income (Loss) | $748,000 | ($54.6 million) | — |
| Advertising and Promotions Expense | $114.6 million | $125.5 million | (9%) |
| Adjusted EBITDA | $61.9 million | ($3.3 million) | — |
| Costs of Revenue | $440.4 million | $333.2 million | 32% |
Revenue Breakdown by Segment
RSI's revenue is generated from various segments. The following table illustrates the revenue breakdown for the nine months ended September 30, 2024:
| Revenue Segment | Amount ($ in thousands) |
|---|---|
| Online Casino and Sports Betting | $664,647 |
| Retail Sports Betting | $1,996 |
| Social Gaming | $3,273 |
| Total Revenue | $669,916 |
Geographic Revenue Distribution
The geographic distribution of RSI's revenue highlights its operational reach. The following table presents the revenue by geographic region for the nine months ended September 30, 2024:
| Region | Revenue ($ in thousands) |
|---|---|
| United States and Canada | $571,439 |
| Latin America (including Mexico) | $98,477 |
| Total Revenue | $669,916 |
Strategic Goals and Market Positioning
RSI aims to enhance its market position through strategic expansions and technology investments. The company is focused on increasing its market share in existing jurisdictions while exploring new opportunities, particularly in states where online gaming is newly legalized.
Commitment to Responsible Gaming
RSI emphasizes responsible gaming as part of its mission. This includes implementing measures to ensure player protection and promote safe gaming practices across its platforms.
Conclusion
Rush Street Interactive, Inc. continues to align its mission with its operational strategies, focusing on technological innovation and responsible gaming while achieving significant financial growth.
How Rush Street Interactive, Inc. (RSI) Works
Business Model
Rush Street Interactive, Inc. (RSI) operates as a leading online gaming company, providing real-money online casino, online sports betting, and retail sports betting in various jurisdictions. As of 2024, RSI's revenue sources include:
- Online Casino
- Online Sports Betting
- Retail Sports Betting
- Social Gaming
Financial Performance
For the three months ended September 30, 2024, RSI reported:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $232.1 million | $169.9 million | $62.2 million | 37% |
| Costs of Revenue | $151.4 million | $116.2 million | $35.3 million | 30% |
| Net Income (Loss) | $3.2 million | $(13.4) million | $16.6 million | 124% |
For the nine months ended September 30, 2024, RSI's performance was as follows:
| Metric | 9M 2024 | 9M 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $669.9 million | $497.3 million | $172.6 million | 35% |
| Costs of Revenue | $440.4 million | $333.2 million | $107.2 million | 32% |
| Net Income (Loss) | $0.748 million | $(54.6) million | $55.3 million | 101% |
Key Revenue Streams
RSI's revenue is predominantly generated from:
- Online Casino: $664.6 million for the nine months ended September 30, 2024
- Online Sports Betting: $230.2 million for Q3 2024
- Retail Sports Betting: $1.996 million for the nine months ended September 30, 2024
- Social Gaming: $3.273 million for the nine months ended September 30, 2024
Operational Costs
RSI's operational costs for Q3 2024 included:
- Advertising and Promotions: $39.2 million
- General and Administrative: $26.5 million
- Depreciation and Amortization: $8.5 million
Cash Flow Analysis
For the nine months ended September 30, 2024, cash flows were as follows:
| Cash Flow Activity | 2024 ($ in thousands) | 2023 ($ in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $80,553 | $(6,759) |
| Net Cash Used in Investing Activities | $(26,215) | $(26,054) |
| Net Cash Used in Financing Activities | $(682) | $(375) |
Market Presence
As of 2024, RSI operates in 15 U.S. states, Colombia, Mexico, Ontario, Canada, and Peru, focusing on expanding its footprint in lucrative markets.
Income Tax Expense
RSI's income tax expense for the nine months ended September 30, 2024 was $17 million, representing a 114% increase from the previous year due to profitability in foreign operations.
Share-based Compensation
For the nine months ended September 30, 2024, RSI reported share-based compensation expenses totaling $26.6 million.
How Rush Street Interactive, Inc. (RSI) Makes Money
Revenue Streams
Rush Street Interactive, Inc. (RSI) generates revenue primarily through three main channels: online casino gaming, online sports betting, and retail sports betting. Additionally, the company engages in social gaming.
Online Casino Revenue
The online casino segment includes a variety of games such as table games and slot machines. Revenue from online casinos is derived from the total customer bets, less amounts paid out for winning bets, and incentives awarded to customers. For the three months ended September 30, 2024, online casino and online sports betting revenue amounted to $230.2 million, compared to $165.3 million in the same period in 2023.
Online Sports Betting Revenue
Online sports betting involves customers placing bets on the outcomes of sporting events. Revenue is generated by setting odds with a built-in theoretical margin. For the nine months ended September 30, 2024, the total revenue from online casino and online sports betting was $664.6 million, a significant increase from $483.7 million in 2023.
Retail Sports Betting Revenue
RSI provides retail sports betting services through partnerships with land-based casinos, earning a commission based on the revenue these sportsbooks generate. For the three months ended September 30, 2024, retail sports betting revenue was $827,000, down from $3.5 million in the same period in 2023.
Social Gaming Revenue
Social gaming is offered where permitted, allowing users to earn or purchase virtual credits for free-to-play games. For the three months ended September 30, 2024, social gaming revenue was $1.1 million.
Geographic Revenue Distribution
RSI's revenue is predominantly generated from the United States and Canada, with a smaller portion from Latin America. In the three months ended September 30, 2024, revenue from the United States and Canada was $194.4 million, while revenue from Latin America was $37.7 million.
Financial Performance Overview
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $232.1 million | $169.9 million | $62.2 million | 37% |
| Costs of Revenue | $151.4 million | $116.2 million | $35.3 million | 30% |
| Advertising and Promotions | $39.2 million | $34.6 million | $4.6 million | 13% |
| General and Administrative | $26.5 million | $22.4 million | $4.1 million | 18% |
| Net Income (Loss) | $3.2 million | $(13.4) million | $16.6 million | (124)% |
Cost Structure
Costs of revenue include market access fees, gaming taxes, operating expenses, and payment processing costs. For the nine months ended September 30, 2024, costs of revenue were $440.4 million, an increase of $107.2 million from $333.2 million in 2023.
Advertising and Promotions
Advertising and promotions expenses for the nine months ended September 30, 2024, totaled $114.6 million, down from $125.5 million in 2023, reflecting a strategic reduction in marketing expenditures as the online gaming market matures.
General and Administrative Expenses
General and administrative expenses rose to $79.6 million for the nine months ended September 30, 2024, compared to $64.6 million in the previous year, driven by increased personnel and administrative costs.
Interest Income
Interest income increased significantly to $5.5 million for the nine months ended September 30, 2024, compared to $1.4 million in 2023, due to higher cash balances in interest-bearing accounts.
Taxation
Income tax expense for the nine months ended September 30, 2024, was $17.0 million, an increase from $7.9 million in 2023.
Cash Flow Analysis
| Cash Flow Type | 9 Months Ended September 30, 2024 | 9 Months Ended September 30, 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $80.6 million | $(6.8) million |
| Net Cash Used in Investing Activities | $(26.2) million | $(26.0) million |
| Net Cash Used in Financing Activities | $(0.7) million | $(0.4) million |
| Effect of Exchange Rate Changes | $(4.3) million | $3.3 million |
| Net Change in Cash | $49.4 million | $(29.9) million |
Future Outlook
RSI continues to expand its operations, including entering new markets, which is expected to enhance revenue growth. The company’s strategic focus on optimizing marketing expenses and enhancing customer engagement is aimed at sustaining profitability and growth in a competitive landscape.
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Article updated on 8 Nov 2024
Resources:
- Rush Street Interactive, Inc. (RSI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Rush Street Interactive, Inc. (RSI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Rush Street Interactive, Inc. (RSI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.