RSI - Earnings call transcript Q2 2021 | Rush Street Interactive, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the RSI Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. conference being this XX, today, that XXXX. note, call recorded is August Please turn to call Vice would the I now over Investor and President Relations Lauren Development. of Associate Seiler,

Lauren Seiler

should XXXX earnings RSI section It and By good Financials Thank the found of website release. to in of you, quarter now, the quarterly can operator results everyone second our have under afternoon. rushstreetinteractive.com. heading, be at access Investors the

laws. of will today be Statements the comments Federal meaning Securities our of Some within Forward-Looking the

not historical should for such are Therefore, of are results similar future to uncertainties you identified of detailed are results no forward-looking interpreting cause the any and could statements in words Forward-looking caution that and risks assume of more you by our statements condition. actual exercise we SEC relying and to We on as operating usually We statements. and facts that discussion and filings subject numerous phrases, financial the or for risks differ use could expect. responsibility what them. to should materially expect, will, our refer other updating impact from

Greg quarter Officer. Richard our the Kyle investors measures evaluating most During on Company's at we Financial earnings believe of directly we measures With financial section results website in comparable we Chairman; RSI Schwartz, with Sauers, second A which measures, operating accordance non-GAAP GAAP. today XXXX which the or rushstreetinteractive.com. the is call Vice be to considered reconciliation useful and GAAP in these available performance. substitute will call, can in Chief have of in be are for our discuss our release, should the CEO; These isolation a available the measures not Carlin, the as prepared in me

provide the an then open first and over opening I turn to call call will to With questions. remarks, that We Greg. the will

Greg Carlin

the for and today. everyone. call Thank good afternoon, you Lauren joining Thanks

key online tenure proud very have RSI at has and CEO. I'm my CEO. Jersey, online that of been I'm Gaming, casino to in in gaming integral to when a building back my which Vice you company. results, of Schwartz, quarterly Street the will into owned as of is It Neil our during RSI forefront of the and the partner me has RSI get in very establishing excited Before RSI know Since me knowledge accomplished continue we beginning. And channel. RSI separately to the in of our I named Richard obvious been founded gaming has the launched would become industry. digital as to I will that co online Richard with we who we been from that our New first all and announce in His Board space industry me Neil leader private the Chairman in role as extensive as of was we U.S. customer has started a and CEO the industry. Rush a most as understanding expand XXXX, the his of business casino

and become to operating executing for right day-to-day strategy. responsibilities CEO Now and jurisdictions, time assume the in for are that we company, is transitioned we public successfully a Richard XX to to have RSI

our that, the value industry team suited management shareholders. quarter I'm continue excited As position to all second talented maintain discuss our to there turn confident of will to with for call no I'm leading over I to With Richard and results. Richard and highly our to chairman execute our the drive to the largest shareholder plan. board, RSI's second working of business vice and is better one

Richard Schwartz

over the establishing RSI nearly Good it Neil support would of a to to the and growth of leader. Together our to I'm to in-house the RSI right developing like I industry. a honored [paths] of our own and prospects RSI further what Greg. I wagering, time for do acknowledge outset, and about supported leadership platform so. an tremendous verticals. confidence vision off, I’m during at trust Greg's things and from the partnership he a key had afternoon, it time common into online was would an both excited everyone. today. the expanded iCasino board sports like and all you, several the also company grateful (Ph) decade, and in product Thank industry both To kick has this as I'm to RSI topics have and not only I but cover new for

First, the I and full-year will our of guidance. highlight another revenues raising quarter revenue of record

to and Next, are our helping financials. to deeper on Kyle drive initiatives some will recent our rollouts marketing about exciting excellence. update finally, I walkthrough technology an I our I into Then will product dive it differentiated will that handing over operational access developments. experience And to and and before market user talk give our

our delivered prudently do top-line to grow during million the XXX.X year-over-year quarter year-over-year team Turning marketing solid increase technology while and ability results, demonstrating and growth, was another XX%. in so. revenue a to continued sequential our of investing the Revenue our quarter, of to representing needed

of estimated prior be revenue million our about full-year sports casino as despite we guidance at also the raising details up but revenue some provide remarks. do revenue range. Not during now that continued Just grow again growth at Kyle XXX guidance million top-line year-over-year lighter our are success to period, XXX expect guidance. growth the our our will XXXX growth growth. of the this additional is and his in as We XX% was midpoint. With impressive sequentially once business, overall our This we XX% and revenues implying between the in in calendar. midpoint sportsbook from growth only previous

and in terms market we Virginia online that of successful online with during Virginia Iowa retail sports on in In of second betting. four betting, and quarter, our Columbia Michigan, in loss is We and online five one. casino casino BetRivers now have eight quarter with sports both during casino. live XX sports of jurisdictions, heels with betting, West went operate the This the launches online

several in new launch update. first our the last year. the half of And since the during earnings Following states

only operate We that have this To sportsbook RSI in earlier significant continued have excited to exclusive very us the initiative. significant making XX been be selected who what three be as mobile very we to overarching sports a statewide in will organization for afternoon but be will up will partnership our inclusive the also of The market services, selection process. to strength of milestone the validated access our be only product, state Lottery announce a we start, a very operation progress states. competitive This very Connecticut, operators betting the authorized not make across sportsbook locations to of of partner, to was are one in of retail and sportsbook. by Connecticut

were the that disclose from of we other Lottery Connecticut pool In has XX competitors. fact, quality selected high a

Although opportunities fall for Connecticut the state football and is to the worth we sports markets. other is during season. currently operational doors regulations, to working Lottery open believe also Connecticut the to this betting excellence noting for It expect launch recognition our compete future by will lottery we finalize that

of are sports week, And bids also submitted you process. from New of this Monday betting. recently on the as aware, local formally As our many York we part of has accepted bid

sportsbook New to We opportunity about offer in online are the state of York. our excited the

a partner applied betting to looking launch in recently there. during market mobile of sports also the the for to Kind Arizona NFL We forward license alongside opportunity our the season.

development with Entertainment. yesterday's Boom announcement Another was in side

both legislation should Boom, sports June we go investment in addition to most a enabling opportunity soon Mississippi to after and eminent approvals. regulations sports Louisiana, has in legislation in opportunities have licensing live Mexico equity for minor and New and as In Louisiana market subjects are access finalized. passed mobile betting casino gained the and

moving Ontario access we an given continuing our Lastly, market relationships both really structure we casino team about are and in into The fantastic sportsbook. has of market with Ontario RSI entry the market. province we size are are the and plan excited the experience and which to that has ahead opportunity open

business of opportunities secure coming no the many in jurisdictions. work see, to and have state we our to at continue can expected couple partnerships strong team hard As next shortage And new development the you over of momentum quarters. near-term launches is

many online specific have seeing. approved already to highlights by encouraged legislative casino continue very at legislators also state to opportunity. from states and the Jersey, we very the has betting. and and numbers New I are generator trends exciting is of for betting cash addition many It the be Michigan sports this recognizing And a momentum quarter sports want become some the We Pennsylvania casinos and are in are turn revenue, in online now looking we that greater online of clear

of than including net assume West where of Thus with entered Michigan, betting Virginia, launch. growth we and little sports per online have to both grew markets competitive sequentially is newly share our we quarter of these see higher launched to our two, continuing market Virginia. trending since revenue of into our Michigan, we online gains previously, market mentioned West progression of each one and Iowa quarter-over-quarter. quarter In peers, from some day a highly I each states As a a are which and QX, later nice casinos in far Virginia,

in evidence evidence despite user profitability our them market share retain our payback continue when fact, markets. the in from the to entered and also superior our will retention grew strong profitable drive we a In think to over and West is That over as contribution point positive just able and experience to customers. marketing are are the we for new and I important our about strong of it market of We the four once markets to we period, we This mature is can to out players introduce loyalty. diverse strong now talked X% that Virginia, is overtime. X.X% we competition. investments, lot first we we April in platform, win

us new calculated the proud earlier, mature. being. and the way and coming mode are markets to put As of ability profitability markets quarters, ultimately I the as be discussed disciplined are in substantial which invest But would from for plenty in we investment to our invest we they there time of in generate over

Now results to are seeing we initiatives, the talking about investments I would them. from marketing and gears like some switch

Mike other to Ditka. look with announced more BetRivers to legend couldn't and for First, to our launches, compared highlight that brand Mr. alongside quarter. in We is spend our and particularly in impacted modestly new in public, investments enjoy. by was first the QX, decreased a accelerated content our which exciting create our going after marketing a QX, Newsday be this we I team, forward our In From excited spend perspective, to him as would very week spend Ditka to ambassador, Michigan. have players exciting significantly like working ambassadors on we NFL partnership and earlier to

As target the lighter was we more calendar little ways and efficiently. found a sports to spend marketing our

be As spend see to had of up hinges we as expect to platform. launches and with year we our what this players the leading offseason opportunities several later state notable into a to marketing early and again, to XXXX, we lot add increase to we expect

and six-months across serve customers to efficiency continue When of of of to an average one-year A we all Our a ability in our comes reengage it payback from based our customers. Real to product analytics further the results dynamic dollars spend year channels, four a of of the value, performance in predicted We success. team variety and offered cohorts continuously various for and three-year focus marketing to to go-to-market revenue. marketing, organization convert, lifetime offerings. investment revenue, intelligence payback our is respectively. see since half marginal to considers to time with inception, the behavior model. period model remain product driven insights great times nearly expenses business marketing using marketing marketing and on the of learnings effectively was jurisdiction, of X.X acquire, our investment XX% of convert including allow return critical times, factors first us optimize the diversified costs, into the This top-line our data and the a sender and demonstrating on retain our

Shifting of eye and Given the back profitability. able we towards pay continue to the increase in long-term will off the revenue that Street are efforts over recognizing Users, Awards. the customer voted on we during further the our strong special leading up - excellence year, RSI the new employees gears industry do highly the willing service our Interactive moment XX% our Monthly year operator to congratulate or experts attracting America to a as a of an leading are awards operator are quarter. testament sequentially or cohorts year social take Rush to EGR for so marketing the North and of as also of at by average to EGR only up was is in period operators. which with These being to the bit. MAUs XXXX I organization and experience. prudently, named and casino These all results, a a year-on-year, terms Active pay operator time of want and XXX% per team, industry recognition MAU of of industry $XXX whole efforts player a the players gaming

technology. Now busy to as been quarter perspective has It we for user a continue a my for to here strive and at quiet favorite topics, product best-in-class experience. offer technology RSI

of new and many features was the loving are updates. live that content customers on recent in Our

our viewer a strong we offered the Jersey in priority in category, casino of and offering early most Pennsylvania, already to live drive excitement viewer in live response the players Michigan. in we example, see similar expect For The Michigan. very

viewer over Pennsylvania. we handle In New believe one-third overtime. And last results of fact, towards in live choice similar will represents trend Jersey, Michigan

We see markets. really out to our - feature are in excited of casino the slot also

Pennsylvania have biggest online. game game features, that with based the Jersey, launched All Aboard Dynamite successful new and very land those to addition in titles we exciting during In Dash A brought was the Michigan. several quarter New

IGT's games both jackpot Pennsylvania. treasure and mega of We in also won size sells New the in AGS' games Jersey, red endless the

Solstice of Finally, Celebration. in Dragons line new games, Soars, Canonic Michigan including federal [indiscernible] China

a functionality of enhance our streams experience, new user added clock, On enhanced array center, live chips, match live betting players improved a capabilities embedded of game in-app content. wagering wide front, update, and for including a greater a we capabilities, to staff search the have volume sports streaming

QX, sorting less We reloading between improvements in logoff These logins reclogging month, XXX,XXX we production. also screens. usability doubled further and to in navigation, incremental our in and times improve period all those reducing dramatically activity with site where higher and saving are over made performance transition

we relates forward, best-in-class now we on-track sportsbook. to the ahead want parlay enhanced iSport every to by player of launch to very base. is for content online are product product here recent mention partnership be it expect RSI which A I season, Looking single our as in in sports game well received mobile our GPG Genius state is live operates to where football which

customer With GPG NBA, UFC very facts bringing excited We are in and with NASCAR. data sports including sports to insights partner major covering betters. to of MLB, closer all our to education NHL, the NFL, PGA,

Speaking real. new their brands of our four of our is number improved independent improvement, recently experience released tested. And Validating was and sports respective user betting the moved sportsbook from out in that app a app app ranking. [indiscernible] two and rated source described [indiscernible] our functionality XX up

new As award excited winning conjunction customer bet we with first the continue are service. in our and the features new significantly to time betting upgraded markets reception from launch sports revenues when we they experience to users app see our

sportsbook our iCasino Pennsylvania to iOS XXXX. in As back shared, also launching committed we of and the in combined and remain app Michigan half previously

markets, app Kyle. these will we both app success While to will the and to With significant to desktop, players. call addition options, seen markets have iOS in in help mobile I in that, over expand and additional reach web, our turn existing Android two

Kyle Sauers

Thanks.

second increase an quarter of revenue XX% is quarter. was X.X the second of for in million the growth Richard of adjusted half which first despite XXX.X this was revenue less As million, loss the quarter mentioned, sequential than the and EBITDA loss quarter the XXXX year-over-year,

XX.X during of our compared and million of first adjusted the prior quarter quarter advertising to returns, Our investments use. our ensuring quarter, XXXX. the XX.X to million to marketing year-over-year commitment This we million year reflects X.X to marketing take approach was the in also and advantage during expense of promotions XXXX strong expense rational accelerating second to but our our good put

as quarters Richard expected in third the new markets execute increase referred expect launches season investments and to football the the We on into earlier. enter to marketing fourth and that we

X.X G&A eight to QX moving grew QX from Our modestly million million. to up from

and build the to out are our development the years. coming over we continue infrastructure to expecting substantial growth support We teams corporate

to the coming expect We item quarters. line continue this grow in to

our adjusted compensation share which second was based removes reminder, X.X the effects EBITDA the a of million during As for quarter the quarter.

remove redeemed results the during share or outstanding effects year. of of year-to-date the this and based fair of which the our the quarter in first compensation, While value change fair all interest in liability were of warrants change expired earn-outs value

We continue in marketing, new remain on position external increase markets cash investments with continue opportunities. regard to and launch to to and sheet investment no debt. be opportunistic us balance with the quickly our allows XXX great This to in and million

As our million. implied million up for from revenue XX% midpoint, XX% XXXX million top-line Richard on range call. we or highlighted at between which up and the year-over-year The earlier, we our million full-year our are revenue at prior from to year-over-year is rains the last guidance expecting XXX XXX increasing XXX that growth were growth XXX be service our to

are strong business during far reflects we this confidence our so the continued and the strong and have across We seeing been XXXX. seeing results increase trends

as up reminder, markets does opportunities about our new any talked not but contributions that hopefully line include that operator, for please as questions. a year, the guidance have We are of opening later market open just today. that this aren't many With live from

Operator

with is Needham. Thank you. McTernan line The question first from the [Operator Instructions] of Bernie

may proceed. You

Bernie McTernan

focusing what But deviation one XX-months? you any sure next over on from the running lay two priorities you playbook key Richard, now. are six - be that a there or can that maybe huge you there with I'm won't to are be will out the guys

Richard Schwartz

Thank it. you. appreciate I

on differentiation. going to really be to innovation and is focus Our continue

to we curve. stay ensure a ahead we the lot more of are We resources that investing grow as

the offer experience to players the user continue we deserve. As

also have verticals I and think our to be to to sports to marketing also be to of for first with looking are that at. you well the in business We betting other think us sure spend I those markets product of well be are in we going that interest terms in prudent we the strong with we are additional worked into that going also the some we planning make And are But as casinos diversify when are continue categories Obviously, industry. are past. to in this bringing matter us be product see they in available. we future ready and has to markets able it really that to would us continue continue say market enter our the access to path

Bernie McTernan

access iGaming, I market can makes things on is the the states seeing it happening seeing there per are momentum for capita lot greater that think side. are you legislation XXXX? in recognizing from that If anything what sense a remarks that is mentioned legislation gets know we follow-up the and how we just you prepared in of iGaming that opportunity you your behind scenes many for point, on are certainly should But about

Richard Schwartz

the month, Pennsylvania. reports time, sorry, and me, I you you every sports every when Jersey, revenues excuse Well, have markets casino New say like Michigan, see Illinois, the like where and

casino, state. universal a the opportunity the way the a examples, casino games gaming two the You so the which more increase challenging online nearly markets of will Indiana, or lobbying states. Illinois And are reported, not terms from online mind opportunity XX% specific is frankly, the Having said see come are in coming in adding revenues in are market that that to does big future recognizing revenues really for of that business. are incremental revenues strength increase states that for. revenues of or convey raise to or And ambitious to the to from are companies a ones

North also potential don't insight we to Alabama, is but So that speak other hearing as we I states very that you a closely, are stronger say we are Carolina particular would have that on today. as something interest well. about like Georgia, have tracking But it

Bernie McTernan

with if Great. for that Street customer so, you data that relationship OSB has able you Gaming have just and access Rush if iGaming target you lastly and their me. can review Could how remind be you to helpful to us, And customers been? have to then just and the

Richard Schwartz

Sure.

to casinos two in supplier RSG, an of Gaming are We One land Schenectady, and is four Street one them. in based Illinois in Rush Pennsylvania.

sports and their of the support for operational support are help services We retail supplier of sportsbooks. the

their with supply or when behalf comes described social And way a support is previously. it also run, operate We them online to product. on we a gaming, the gaming that in besides

able terms to In of bring reciprocate seen to loyalty land those ensure based and to we genius able online and the back the certainly that to yes, helps able we with bring success a mind think collaboration to property are also and approach have and retail traffic drive I but And properties databases, strategy environments. the be online understanding greater of your in we which casino based land that properties online, were says omni-channel have lot and around both leverage well. in we based working brand, of really the

Bernie McTernan

the you. taking thank I appreciate you Great, questions.

Richard Schwartz

thank appreciate are you welcome. it, you I too,

Operator

Your with of comes David Jefferies. the line next from question Katz

may proceed. You

David Katz

capabilities with how developing that yourselves ultimate I and providing wanted whether and, think content about forward just which you customer? cetera you about or as and buy talk versus, about your how thoughts updated et or [indiscernible] you tuck-ins developed BXB you have the go respect to think build, those and of just capabilities providers

Richard Schwartz

products. not industries really seen desire And you might world-class something, I in the be what passionate that together certainly the the always in but I'm world-class. may Sure, to about, have times because past as I many understand buy have past

what's to using off put world-class three you so maybe in products or yourself some leveraging or then available. only and And ways something

challenge either leverage we our solutions. is companies are industry, you in our that Most competitors, I of third-party really IT in what would that our at, tell unique we DNA, company, look always is that and our or So firms, that a marketing space. the or

that do to to manufacturer have stack, insights like the fun, Our is to build own because thing team gaming to company, challenging you G&A we and do, know we a experiences, the a technology an build executed in very on and your what know way. talented engineering right of have order actually how is on

And in have games games to happen our casino and Jersey of own the we have market. categories that the something have be we we got blackjack performing that had in in they strongest a the so I done, couple past and New

We have been with us years. for

are have We exists high have in build that to able development it. to on experiences how But that them and always the playing partners we layer how create know on of we the and and low take some that are resources is have really not player unique, and to playing. those innovation own experience do own we are core to site add and the games spin everything ourselves. feel to a plan are the create of our different things like top our the same technology and additional we future. of won't to have strategy But top from really products quality to cost our Because take

will when to that way with do our treat and to game we we So continue the us. really differentiates they play players experience because that

strength our tucking we enhance proven content, while innovation evaluating effort adding unique top own that and resource on create to on players. layer we all quality, - that of ways will taking middle high for do like layer really continue is So feel opportunities looking are a content is really and to for it some that of be we

David Katz

in because direction you may obviously I that recently. was I hoping ended which is think the to follow around sort of up, happening If I you very go, that

getting And size you separate you are some that the how at pretty past big in to about execution some and particularly thinking always and an or and is weeks. acquisitions and that is And a bigger. big point, deals that, content it matter, going differentiation two

Richard Schwartz

The makes volume experience, or on like we you the larger in have at or casino categories In impacted revenue the U.S. single that compete. market look liquidity product in is in more on which poker site sports really fantasy, daily the If being a players of players have you matters a of players. a a the get experience, million like markets. harder to betting whether have where creates five effect online generated we majority size site you lock X the player it user the

to way is offer you best transparency unique So players going are features you continue not other to reason greater our them it focus the that to and approach or give is treat stay you. offer honesty. provide the to it, experience the to players sides a user And and offered notice the with don't

of grow and care, We if we been sure are respect, quality experience I players continue improve, and So those and advance. do service high because if that, will feel to think treating products we we have our well, focusing with on make continue our like we to mature really to them continue we growing, a as qualities. customer award that way. continue feel will user an we like have winning are And to we to going

buy think share. So we to to you have your don't market way

by far, user the at to is exploring continue continue experience action options on and every have do are we we And looking of the is what So which focus so done feel like to the always course moments, and possible. we best to differentiating it. to angle

David Katz

you. Thank Okay.

Operator

Thank Sigdahl Katz. you Ryan from Mr. line next Craig-Hallum. The question of is the of

proceed. may You

Ryan Sigdahl

You four are profitable. to able states those you mentioned are? four name Are which

Kyle Sauers

we question, going profitability. mature, for get of Thanks This did state-by-state, how to want an do when not into we the markets to is I'm this Ryan. that to example highlight as Kyle. go

state-by-state that a markets a XXXX full-year read months in New is a bit little and can have which we mature. about into markets talk was the that of I talking make ago, one as of those the stop we sort bit understand couple about little profitability. sure getting you it are about being that longer. been So profitable But you guys profitable instructive that states. we think thought specifically and But to Jersey going will We for of I did

investments in quarters For in couple in excited markets. involved markets will launch, question are around got coming those new no No a profitability up have more those markets. be and we we opportunity. of next those we mature of weigh lot of here. that. that the new that shortage see And those sure, about But as launching There

Ryan Sigdahl

more one marketing you then increase for said know And you back about just thinking spend. external half. I

from pretty any to you hearing either revenue guideposts there? of out half can put help anything that some your of first the some are or to competitors. relative Anyway, or We plans around us percent aggressive

Kyle Sauers

QX. little of first we returns by our But of few which we are from the then be and we up on Michigan. seeing as without market step bit season. of of of the as we timing And back quarter, half into payback past are the quarter, competitors on the guidance metrics, specifically also QX willing the said, a that from to depending think a extend of kind The timing football second and we to those sports the see Richard Trying are year bigger in sense. significant in really markets, talked last pretty or And spends when new call. the launch little well. going in bit a that more about that we the decrease QX calls, is good that in getting But any spend that spend launch reflective expect to we whether the impact calendar, highlighted and wider the on QX launched going marketing new those

year. the be back will investments half the the So of strong in

Ryan Sigdahl

your any to is quantify online, for it you Any as see potential retail the between licensed can GGR, in there. expectations general whether Connecticut great as and it Great, profitability state? commentary on well way

Kyle Sauers

GGR start the to market is for in It early talking probably expectations share too and state. about

around competitive it economics was everyone And lot there. things or we can promotions. very lottery the it nuances of of state where that in good those credits bodes feel how guarantees, can guarantees minimum locations, a the particularly ones we agreements, take where RSI. state in we XX about well for taxes And, think proud many or proven access process. you we for ramp partnership the is that as free you a The the success. selected Connecticut, with in big that is But any of imagine the up. limited revenue the our I partner But was we market were with also just against process, shares entered have how would a of knows, say, haven't competitive terms like, minimum a and will there like we disclosed. agreement state the economics, been in feel even state in terms retail of plan I good reflects opportunity of operators. had for marketing very this And Connecticut and commitments with

Ryan Sigdahl

luck. Good guys. Thanks Great.

Kyle Sauers

Ryan. Thank

Operator

The Sigdahl. line Beynon from is Mr. you question the Macquarie. with Chad next of Thank

You may proceed.

Chad Beynon

you sequential declines are for Hi I are you how expecting viewing taking Greg, not player kind more my about, expecting within the question. just any us help you of Richard, Thanks. half seasonality of And revisit guidance, new goes terms good the the online obviously, average afternoon thanks know, back launches. in I guidance. But year. just some are as Kyle, any in behaviors? launches work you recent that contribute to person wanted think of your back said the will you Can casino? to of

Kyle Sauers

percentage QX, benefit. we were a I from QX is a old home would to to about much not that that there different of little they those into one can things vary out few go so things little from low-end. had as as quite and it high-end Sure, in did And will obviously we be also a that cause guidance we at where and thinking in bit point of benefit

I probably revenue seasonality do have which will some seasonal in some like much we heading that our in a But QX. And you the the you we have think we season there. the don't football said, to pick On see up pick portion as in get QX sport on and impact in calendar QX online on is of mix. in that and as and into casino, model do back we bit seasonality, right where is seasonality, I greater little expect stores, to of again. then impact because up a casino that larger We until then are QX side, be to

everyone thing these happen remind So we state have help then guess excited of And coming last a the end we new and which our the launches to as I said, the guidance, that few season of here here don't quarters. in is, football and will any about are in that QX. just you will obviously in weeks, potentially we pretty included months

Chad Beynon

is foundation a promotional older shed needs set this impressive. that you in credits on lower, on around credits. into retain Thanks. came sticking Could XX reduce system, which then you Great. promos? of Slide continue you And where little with noted cohorts strong a player the your you. light or letters? lower a about, Thank talked when retention that is there terms doing those as to your deck, level to And the you pretty in in those to people the Are

Kyle Sauers

Maybe you that have platform if higher or the players levels been promotions just that - on dissipate activities remain the your promotional clarify overtime? question, level longer need does asking of to at are to with

Chad Beynon

please. Yes,

Kyle Sauers

fair. think that a I Yes, is

see launching, in also stages of stages customer frequently, service. a as the great because have about But promotional user we retention, bringing talks platform. more definitely customers of early You great and activity early market of Richard experience in on the great and a

as that So markets as not does to levels, sustain mature platform. players on need promotional our the and that mature those activity

Richard Schwartz

players right we close ensuring treating most The of amount feel are appropriate are do with also job while We to the -. targeted valuable. very of a platform want we a them for we that the are targeting of that you where way nice on

to with you. have to players they might may when not all the So same start as bonus you at levels you

Chad Beynon

Thank very much. you

Kyle Sauers

questions. the for Thanks

Operator

Jed with is the of Beynon. The Mr. line question Oppenheimer. next you Kelly from Thank

You may proceed.

Unidentified Analyst

new Jed Richard, This [Simon] for is role. actually (Ph) on congrats the and

you gaining customers? engagement Have driven some softens mix the new calendar larger wallet seen online of as guys all higher a casino quarter. stronger XQ casino sports the is by that you ARPU or a costs would With customers mix you are say share online on and just you then

Kyle Sauers

players the QX. of RMOU probably in casino and I seasonality hit with parts the and of higher early kind are head on quarter think So you being like - QX, having a a

You season, where player are opposite that increase reactivation might a going see engagement trend the see bit. the into you RMOU, new you as see MOUs players are MOU to lower direction And head higher or in more reduce football increases dramatically. to of you RMOU a and might and the going we see

and think also I can player higher in there, having because you addition will impact growth you where are new to new attraction the from likely to an in your RMOU see see launches, an impact more market doing bringing football going promotions. online, you that MOUs, more are season impact

You those starting you platform, are the are bringing increase players onto to time. the over retention

the hit a flow on So and hopefully is over and you that ebb But context going little on time. with were way you QX the in I to change the gives it it you think describing head it.

Unidentified Analyst

guess customers? and it in are customers bringing you value would seeing across casino casino entail Yes, I more like, sports? a understand, Are you lot higher

Richard Schwartz

So we comments growth our that casino. sequential in both have actually sports noticed we and did in

are the we terms we of sports have absolute the players verticals items. in of large does us, balanced have having things of a Michigan, markets what market for is said some more a which versus only I but only that one still going very like arriving newer both or with going nicely, more volume So a higher would volumes, say to

we So are balanced. think I fairly

it don't the one is extreme way other. I So think or

characteristics I think it allowed. are is very market-by-market, products depending on what of the

Unidentified Analyst

can or BXB, (Ph) tapping you. follow-up should else not think then we in That somewhere we just BXC disclosed? the I And revenue, that is a think about partnership, is should that thank good, of [GTG] if as on

Richard Schwartz

It we not market No is is relationship access. a where BXB other relationship. a like it BXC

running obviously be the royalties operation paying will the and ourselves, to We commitments state.

Connecticut living one the we in people state, in about strength a XX of earlier, which a offers our to plays XX players of that excited around having be And see retail markets retail And three in like it this seen locations these from are because we lot really, drive very mentioned market. it locations will most from Pennsylvania. sign have in online of Kyle particular, we spread like bet. As that, noted minute retail the as you within sports can you

site the be with But And very So professional coordination our Connecticut will potential. we efficient, very we about operating process. close are really run is excited in province, they lottery that a remember very Customer our gaming like user experience, our RFP a needed those of product things a combined, of a of all us. uniqueness approach, Award like both proposition and for quality Service, the attractive responsible think Winning I

Unidentified Analyst

guys. you Thank

Operator

next line Benchmark. Hickey Mr. from The question is with Kelly. you Mike Thank the of

proceed. may You

Mike Hickey

on of in guess innovation me. the questions I the sort happening of competitive the look I landscape. is that. side on Two for mean the at first is OSB some

Looking sort innovation features. about guess marketplace you when at have is then social think the Larry. betting, follow-up. media industry I there, And integration, streaming ultimate tension How in sort Obviously, I game and now, share of that of position? important

Richard Schwartz

great It differentiation Innovation is question. and is a critical.

brand little I without think some very skill. our might valuable and acquire be initially, companies brand traffic

the you same highly to not a in competitive you as especially experience, market. players term, user right longer If the going are offer don't

the the things have keys work, you a Because lot with players, can mindset started that do right. what of one college build. to to understand think I So is you about gambler so is know enough of the you don't

like an certainly to thing a us, being we in way for the is is, to so there you is But where that happening. some players like. And trending is find industry. everything about that a there areas And it features implement have way really yes, follow to

the pioneered for in online. to we a so community And sportsbook ideas we we and of And really and going thoughts similar are industry, casino lot market. how something example, the in and online have do interest

building tournaments innovation also you this about. and is mentioned, that excited we mentioned another have we that are of area call, that mobile we developing. while been we player have think And some I So

the you lot a thoughtful was idea we time. a things I it his in large in So folks, players is is a that is a have think it apology. resonate I really Because have something that the developer good been think won't with industry of with done really making team audience. And a of long really here has do sure advancing might innovation, a important, spend but always understanding you time of way that

a work long-term on work. to in grasp the the good sure over have challenges don't works things avoid are really a have make what company. and invest and what you of lot sure We a impact things doesn't going the you making of And that that

of we quarters things features. in and the on, are excited ahead there release be to a So going that some those is big will couple are of we about working we

Mike Hickey

The Thanks guess casino guess, but you that the Overtime different? think I second as this you some anymore, question expect you I is, innovation guys. just you app. other in of leader at, the sportsbook the but on real it, I is just casino a sort what you media integration I obviously, and true you other on have are or certainly probably was what flips I biggest year When online we maybe the that have the is overseeing, see within do kind innovation with not the expand similar streaming seen maybe, casino mean states do look layers think, guess online sports of store side, side, of side. on about the that that the question. opportunities, first, you started. into definitely customer

Richard Schwartz

at you different products look viewing. on based you to a surprisingly it is engine, have transaction the ability are and how if are build the you the In that sportsbook, categories field. sportsbook, the actions With

and offer pace speed on move to decisions having ability insights better a and experience you at fast and that to to the it. making things making a about is things that fun the get the bet sure into deliver little it So most

that eyes study number indicator been recent we have features products those So with in moved we the think deck all project available today. And we afternoon of games differentiated some to the the invested else stream eight of we streaming really one have A library see lot like doing end leading and we game I sportsbook. earlier we think But casino. entertainment to are And doing the but at most online industry games you market But the studio. things this trust When is might does. in we out companies And our sportsbook. libraries have reasons fun a the buy on same companies a some from certainly together the we of good why of now, and the one of in go with player. few enhanced this doing really and exclusive to manufacture getting information to the in bit the And following reduce the XX four number helpful can large have out something everybody some have a week, it lost we put certainly of going investor up library that. casino, comes day, is games. and We that about the quality, in have the content and quality I'm features posted if have in. terms you think is quite of to friction

your in to to building to And done unexpected they that have create engines haven't experienced down ways yourself. game comes players You before. or ways own that entertain

the nowhere So when for this and to things really go time to features you doesn't to get gets shelf. date stuff that why games, want we the real and it It there something like can you the that can exist, you go engines that. build is the else by unique, off is built offer court

yourself really how have and to it You build to know build it.

are are that market. ahead. past. said, helped But an that that in focus is role the to So continuing us later in a invest area. some ideas in area these the ourselves features excited we Like release casino to on new And I of quarters propel is that we in the online lot in leadership a to we

Mike Hickey

Awesome, thanks guys.

Operator

Mr. Grambling with you of Goldman line from the Stephen is question next The Sachs. Hickeuy. Thank

proceed. Your may

Stephen Grambling

is the guess follow-up. I a first

cohort there to of is anything there different than was Slide your anything a else of terms unusual he or yearly off highlight that like And of they think Is about looks the I tweaking of the in through came XX, why that QX. bit cohort. XXXX XXXX or cohorts? talking show it think there kind in that So little you XXXX kind can kind XXXX looks you

Kyle Sauers

launch impact Illinois thing Yes, the QX. Illinois sports is of in caught I betting the I one calendar just think there and on sports the in XXXX,

thing that differently. one the impacts be would that probably bit little think that mentioned that a I So, I

Stephen Grambling

changing about then in strategies inform process the And it. gears, and your how outcome Got how there? [indiscernible] the Connecticut maybe you think to over there does try

Richard Schwartz

it Commission. to us When considering are decision compete for in of in making to New application submitted spend each it because We by market. has response And the don't that winning process think assets winning really in we think a excited Connecticut. different a obviously or Gaming opportunity informed the request comes much, we was very have it what to by submission different a state case RFP York,

planned direction ongoing terms we basis certainly bid, them next haven't of process We we will it there. think is on procurement from I and are steps we think we think on announce share in specifics Newer the going to do truly much the still is though But that for that really before of the to stronger wait games certainly northeast helpful.

Stephen Grambling

maintenance that little how Got it. guess, do you but before understand make maybe that of on have to kind know just And touched I already I generally that to keep marketing customers need acquired bit want you think you [indiscernible] for I'm a Thanks. like sure I engaged? about correctly. this quantifying

Richard Schwartz

those Yes, you so that market that lapsed. players to seen when we have are

have chance really a You reengaging. nice of

get up where those benefits for whatever you do and point maybe before at to has players We those player. we are with active public a being reaching the were some have we an we as marketing that seen were you stopped spend ramped of over last reason have company quarters happy couple sort compared we of

feel no player longer had with invigorated the back decided have players us, they to chance express very active. You get but that to confident remain trends that reason to a getting re positive us certainly a certain

certainly doing. increase your have So you spend as been as we marketing

opportunity marketing perhaps from of site You your engage and players now are a that whatever chance a we for we maybe one playing chance at is increased with enough loyalty. to stopped I regain And us taken does for reconnect seeing, it publishers have think spend have an using that to that a the players us to whatever I reason, of with a give break re have is engage. have and that, to reason that their some chance benefits point

Stephen Grambling

Okay. so Thanks much.

Operator

I Thanks you it remarks. to There at to CEO Mr. time. additional for questions like would pass Grambling. off are additional Schwartz, any Richard this no

Richard Schwartz

the CEO Street the to exciting No history RSI, all rapidly I'm my for about in this excited growing for how we I of role be are have in time you evolving been questions. Interactive. incredibly great market. more of thank taking succeed this Rush excited Well, to positioned time

already We found of expect market we choice have proven to access market access ads that we are locations or partners. partner of and you where view list have

We fantastic and returns retention, and as maturing proven player marketing have ultimately model profitability markets. out operating strong a proving with experience in

raised Lastly, few indicated. here as questions a today

We back our a to offer. for create are experience we the are we for innovators, returning engaging experiences continuing to platform keep world-class

accelerates that technology proprietary development have of We the new features. exciting

doing look We time While us today, you. you forward market partners. allowing joining at was speed pleasure and to to again world-class soon. the integrations for same speaking Thank strong and again so with it

Operator

Thank you RSI XXXX for call. joining today's second conference quarter

now may your have You lovely disconnect a day. lines and

Rush Street Interactive (RSI) 13 Aug 212021 Q2 Earnings call transcript