CHICAGO - Rush Street Interactive, Inc. (NYSE: RSI), a prominent player in the online casino and sports betting industry, has reported a notable beat on both earnings and revenue for the fourth quarter of 2023, alongside issuing a strong revenue outlook for 2024. The company's shares surged 18% as a result of the positive earnings release and forward guidance, indicating a bullish investor sentiment.
For the fourth quarter, Rush Street Interactive posted earnings per share (EPS) of $0.01, exceeding analysts' expectations of a $0.02 loss. Revenue for the quarter reached $193.9 million, surpassing the consensus estimate of $178.56 million and marking a 17% increase from the $165.5 million reported in the same quarter of the previous year.
The company's net loss narrowed to $5.5 million from a loss of $31.1 million year-over-year (YoY), while adjusted EBITDA showed a significant improvement, turning from a loss of $17.3 million to a gain of $11.5 million.
Looking ahead, Rush Street Interactive has set a full-year 2024 revenue guidance range of $770 to $830 million, with the midpoint of $800 million representing a 16% YoY growth compared to 2023's revenue of $691 million.
This forecast exceeds the analyst consensus of $759 million. The company also anticipates a substantial increase in adjusted EBITDA, projecting between $35 and $45 million for the year, which at the midpoint would translate to over 390% growth from the $8.2 million recorded in 2023.
Richard Schwartz, CEO of Rush Street Interactive, attributed the strong fourth quarter to record revenues and adjusted EBITDA, driven by robust customer engagement and retention. He expressed confidence in the company's customer-focused approach and innovative offerings, which are expected to continue fueling growth into the new year.
With a solid cash position and no debt, Schwartz emphasized the company's ability to execute its long-term strategy and invest in new market opportunities, as demonstrated by the successful launch in Delaware.
The company's guidance is based on the assumption that it will continue to operate in the markets where it is currently active, without any expansion into new jurisdictions. Investors have responded positively to the earnings beat and upbeat guidance, with the stock's significant upswing reflecting optimism about the company's future performance.
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