Rush Street Interactive Surges After Unveiling Strong 2024 Guidance

Posted on: March 6, 2024, 10:37h. 

Last updated on: March 7, 2024, 11:05h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Rush Street Interactive (NYSE: RSI) soared in Wednesday’s post-market trading session. That’s after the gaming company delivered bullish 2024 earnings before interest, taxes, depreciation, amortization (EBITDA), and sales guidance.

Rush Street Interactive
The Rush Street Interactive corporate logo. The company unveiled strong 2024 revenue and EBITDA guidance on Wednesday. (Image: Rush Street Interactive)

The online sportsbook operator posted a gain of 23.4% in after-hours trading, as investors digested news that the company expects 2024 revenue of $770 million to $830 million on adjusted EBITDA of $35 million to $45 million. Based on the midpoint of those ranges, Rush Street Interactive is forecasting EBITDA growth of 39% and a revenue jump of 16%.

These guidance ranges are based on certain assumptions, including that (i) only operations in live jurisdictions as of today’s date are included, and (ii) RSI continues to operate in markets in which it is live today,” according to a statement.

In North America, the operator offers iGaming and/or sports wagering in Colorado, Delaware, Illinois, Indiana, Iowa, Michigan, New Jersey, New York, Pennsylvania, Virginia, and West Virginia, as well as Ontario, Canada.

Rush Street Ended 2023 Strong

The positive 2024 forecasts put forth by Rush Street Interactive come on the heels of a strong conclusion to 2023.

Last year, the operator notched adjusted EBITDA of $8.2 million following a loss of $91.8 million during the full year of 2022, as revenue soared 17% to $691.2 million from $592.2 million. Not only has Rush Street joined the ranks of online sports betting companies raising guidance and heading toward increased profitability, its balance sheet is pristine.

At the end of last year, RSI had no debt, and “unrestricted cash and cash equivalents” of $168 million. That’s more than 10% of the company’s market value of $1.23 billion, indicating that its cash stockpile may be underappreciated by the investment community.

“With a substantial cash balance and no debt, our financial wherewithal provides us the luxury of being able to continue executing on our long-term strategy and investing appropriately in new markets. Our strong launch in Delaware exemplifies our ability to identify and grow new and exciting markets, including the opportunities we are pursuing across the Americas,” said CEO Richard Schwartz in the press release.

LatAm Strong for RSI, Too

RSI also told investors its Latin America revenue surged 50% last year. While rivals focus on the U.S., RSI’s exposure to fast-growing Latin America is arguably underappreciated as well.

The operator debuted in Colombia in 2018 and opened two offices there last year. In 2022, RSI entered Mexico through an agreement with media conglomerate Grupo Multimedios. Mexico and Colombia are the region’s second- and fourth-largest economies, respectively.

There’s also been speculation that RSI could expand into other countries in the region, including Argentina, Brazil, and Peru. The company launched the first regulated sportsbook in Latin America.