RSI - Earnings call transcript Q4 2023 | 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 Rush Street Interactive Fourth Quarter and Year End 2023 Earnings Conference Call. [Operator Instructions] Please note that this conference call is being recorded today, March 6, 2024. I will now turn the call over to Kyle Sauers, Chief Financial Officer.

You may proceed.

Kyle Sauers

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

Some the of within the forward-looking meaning laws. of comments securities our be statements will federal

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

non-GAAP income of noncash RSI deck, the earnings or in end of related to onetime which website release investor believe in isolation at we certain a our EBITDA, reconciliation operating should for considered most will be During our evaluating our useful directly fourth the comparable measures not not or substitute performance. rushstreetinteractive.com. we nonrecurring section are These quarter particular, we which adjusted company's items, are GAAP. results define can measures, XXXX prepared available at discuss or In GAAP is adjustments depreciation for Investors be the interest, either available discussing as adjustments our share-based in compensation, with year performance. will measure income non-GAAP before financial and other the accordance the is in or underlying and be net measures call, our taxes, amortization, and we as to loss these which and A business that

EBITDA, basis. adjusted call, we Schwartz, we're or discussing today's the those non-GAAP other today, on noted Chief other income me otherwise, to unless measures profitability, Officer. EBITDA than revenue, With when Richard statement Executive a referring purposes For have call of on items

We and the to call that, over remarks Richard. with opening the provide will then and questions, turn call to I'll first some open

Richard Schwartz

full targets. the for of $XXX as improved result by Through results delivered We to achieved we've ahead Thanks, second the started fourth with out accomplished years year by and focused better team and million. We revenue earnings ended we EBITDA set how Interactive, our start efforts we've ourselves success call. end far welcome this Street to of afternoon high of XXXX, set guidance year, of to profitable our Kyle. and strong at for am with initially year and we a Rush our Good like have EBITDA a half come. profitability with year-over-year the up quarter proud our our exceeded team, I'd I what XXXX be how year. XXXX the of and year execution strong were and the for end our record-setting momentum. We though for for profitable quarter to

newer creating both targets, profitability geographies, investments experiences with all as and user our increased our from differentiated Our more know-how in we and growth and mature simultaneously and paying and from achieved and are both from sports, contribution off high-quality iCasino markets.

continuing in operating end. experience new it key product time wins on the year in to of X principles: the I've momentum user the and outperformance us and and first, the said the customer. execute are again, result XXXX Our

priority. not user We We easily a past spent way feel we have the the our on XX-plus started competitive business that to the we we in today. focused have years top feel advantage enhancing felt in replicated, since have this and continue XXXX, we experience it as

all are to world-class and our offering experience success. drives is ethos about a fundamental minimizes user retention. that customers This friction We

is features to and technology goals. is accomplish improving best-in-class our functions allows what our of continuously us product and differentiated and support financial technology, and ever our investing customer Second platform growing wide range and

these as as we Third referenced set improve grows expect is a we we operating revenue. scale. EBITDA to improving increase that year by With leverage We $XXX growth on $XXX saw but quarter. each each so past the not drive million continued we flow. cash culminating we strong in fourth and in year, in a million, of deliver only earlier, earnings year, as markets, of areas I in throughout diversified progress did very did This

XX% Revenue $XX.X was million, at million, year. fourth results. our Quarterly compared last year. prior to million for from quarter EBITDA the $XX.X negative coming to in up Turning the $XX.X $XXX million, improved

For to part an revenue large before at more note and growth markets quarter. things few away customer-centric A the the are innovate launched mentioned, provide and different was our numbers. There and Canada products, much also ability XX% performance to When million, that I revenue XXXX, again, is once across as year. to will and line our revenue EBITDA detail the are grow full $XXX we the across during of quarter of year, strength XX% it's approach translate iCasino market efficiently. more which, grew to improved online both We saw and looking and to in vintages, that we sports resulted geographies, excluding our as the continue on into take Top the exciting $X.X million. was strong impressive seeing we from our results. U.S. Kyle fourth also betting, LATAM. a U.S. improvement

increased of Canada. values. even Higher in grow in highlights counts revenue user are markets. A we couple our higher-margin the of continue grow driving note U.S. to player as faster and We

throughout we accelerated the growth our year. betting-only in In has between the quarter and at fact, iCasino was MAU which and during nicely X%, well of markets. the growth QX important, X online fourth quarter highest this last achieved continued more quarters year-over-year balanced Even sports that into

a past strong markets, seen our a specific rate highlights was has Michigan at in for few Looking and year. revenue acceleration in QX highest growth QX the

we Virginia nice West strong continued we also experience. in in have XX%. grew time recent new already progress impact the seen in well that prior continue has of for pace high-quality New revenue hit market the year. Delaware Ontario, market our in great a validated high as XXXX success with rebranded of compared quarters, year-over-year we growth and QX user Jersey BetRivers the to since of in its XX% has to where that by a short we is a revenue

pleased sole of the land-based the Sportsbook for little online we X over has casinos. only sports each state's betting are online with been and months, As the platform It state, powering we are X a iGaming and reminder, nevertheless in start. casino a but extremely the

the Over days, was and run purposes, prior for iCasino, online prior operator only and casino our a we of The XX casino had GGR would are product the been online that sports to results imply what over is comparison over simply this replacement rate results, apples, then, that strong the GGR. we operator at to being first never are in we of time is and markets in annual offered the and $XX user so in seeing at our obviously, above our players which results, iCasino and These in operations, has iCasino. again, their X/X excel And to point million rest which betting. Comparing the apples the online state Xx experience running prior our online initial was initial doing. launch. include in why, able to betting sports view, differentiated previous are highlight platform

well continues south, quarter revenue up topical show well, are over XX% history. planning to us brings over revenues, we Revenue online we stated, quarter. to XX% as total broader LATAM over quarter in very expansion. as to while XX% a demonstrated was in it Mexico extremely This that year in sports Latin iCasino fourth performance. for landscape are strong Moving continue remains industry the proven America fact in leader Colombia over grew approximately several Latin LATAM level contribution within betting year, execute countries the the America. by our for and Simply both of as highest

localized comes know-how have track of demonstrated by investment, region, success, We customized and a only experience. technology and infrastructure on-the-ground significant the the that from record powered for

capabilities our than better Colombia. LATAM demonstrates in Nowhere

quarter a with ago, employees, long come results Our at very pace fourth expect essentially a as We've to rapid relationships, recognition, no and grow we accelerated growth Colombia its no achieved year. no the fundamentals become on business lot continue largest one to Spanish revenue very in the to by X Colombia way out spoke nothing. we've believe and of in years in in brand databases, no in that the of operator investing ahead. a fluently. No rate recently highest growth the sustainable on point we've we beginning. where the fundamentals building company our from second By We've grown way, executing business Colombia. even in the the a focusing the the success and set

We finance, built operations, organization locally, teams. legal, and including entire have compliance, marketing, HR, full payments, the an development

same able growth first with XXXX. shared meaningful half is in our global represented the in doing late growing launched by Our customers. develop itself deliver importantly, competitors, to expectations local a approach meaningful ramp compared revenue several start in partners for in Latin the spends, Bottom and marketing the Despite more effort during in were their relationships share. we earn since have expand to fast operators, of providing This to of while When at Mexico in growth retain LATAM ahead, are of time the aggressive generated we about we on market America, our begin of in continued us Mexico. In strong market and XXX% second were app well the we foundation We line, and to the entered employees, with Mexico, exciting in years. one us have second last capture Colombia in compared to as presence up able the are been year. allowed the as our market has to half the with to us as has and as an credibility not we revenue half XXXX, some time the this after It seeing in Couple market and the highest Xx couple last success. being rated launch over same this years they remains Colombia, us. for both of served period. initial the poised our

regulatory and LATAM of a lead Sportsbook. This a time the that a to conclusion lengthy to there to would that of framework of aware Brazil of thought for was current investors are several Beyond December, is President the legislative Sportsbook. many much late our online only are process the for in legalization both authorizing our strengths region casino where the opportunities play legislation footprint, is signed

casino online process, Fortunately, especially the the for added. at RSI, was of end

casino market less online for us, viewed it we but For us, have a meaning online but also time on our approved you is gaming many gaming well. in that opportunity updating aspect market, very are excited capabilities and and Peru. market our published media complexities of strength. regulations. year, to in of governing only and exciting spent another adjacency consumers are regulations quarters. There to lot legislation technology on the this look laws online markets, of worked We we the also a bigger, progress inclusion coming Brazilian an plan to attention, betting, Peru, and sports its shared Last we market are to by as makes certainly be but Colombia leverage Colombia still preparing through many about for There plays in the long is soccer to it Peru broadcasts our participate. in which not and the is TV forward which country and that This to that given gets

In our shown is fact, brand in our widely RushBet recognized Peru. research has that already

will a we on this timing expect Notwithstanding, we more details. year. share our launch clear more to As becomes later Peru launch,

addressable regulated markets million American these say, countries. million. outlook, host Peru them In terms a XX over Compare which to legislative over billion significant and seeing of are in to with of the with that between around our market beginning there near a population is Peru we sessions North million and we for The on the watching which are legislative Mexico population is country, are that see XXX of closely of size radar XXX total alone. Shifting and past Brazil people how over at opportunities $X iCasino at the of Mexico, about to We and target XX an on calls. then of are intermediate opportunities. legislative certainly is activity, XXX we people states length X and LATAM is the XXXX's estimated term market ramping both we discussed million, Brazil Safe Colombia, and million. and

odds well states include most are we in While Alberta. Maryland, watching on York, not as we legislative the some New Canada, provinces are of laying that outcomes, notably Illinois, as

if. iCasino online iCasino industry momentum behind some betting. the and along As growth public confident very investments and beneficial us we up There sports in have initiatives budgets, more legislation markets. a when, America, term, and scenes more long from question exciting remain positive legalizing given inflows ratchets to to of the more in More is look over compared ahead, I've as That government future. Latin focus its the in not is in expansion online opportunities no as increasingly with these, the quite especially and the shortage economics universe. We excited regarding mentioned is near- our to about the long-term building, of visible

Now, the to Kyle talk in about financials. details it hand over more to I'll

Kyle Sauers

quarter was over to year year Thanks, year, XXXX $XXX.X XX% full year. up up million, Richard. million, over Fourth XX% year also of revenue $XXX.X leading revenue

to quarter. up both very we're during growth our year betting, well XX% continue year LATAM with and and markets. Geographically, both the experience double-digit online also balanced well-balanced across in We Canadian, both U.S., sports performance iCasino over

improved to of posted we through positive cash at flow million. quarter earnings scale a consecutive achieve coming fourth $XX.X with the in the as We flow business. continue of our EBITDA We record and third quarter to

American a nearly on increase revenue. XXX,XXX, active users. dollar in improved mentioned, very retention full North and results, our Richard encouraged in year million trends for the by reaching $XXX the Underlying with the player quarterly similar As a MAUs measured we're acquisition by EBITDA our as Fourth record. were monthly quarter

In online retention our this of existing markets. fact, our year and of over across efforts MAUs and the year. both in growth acquisition highest Most reflects year, MAU sports our successful were up player casino in increase betting X%

see improved We also to ARPMAU. continue trends in

quarter, and During level highest continued Latin was the strong coming $XXX in anticipated December in year markets Canadian our at for QX success With years, of and a X Latin the feel since public U.S. new year. what compared growth MAUs look last X% of this XX% up American value to the is ARPMAU data and America the fourth XXXX. in about that's the XXXX, years fourth the up X in right time ago, we going were our and If and user already on our are we to sizable a back QX our LATAM years markets. quarter start player player sharing XXX,XXX, base. during top up to year was XXX%, of over MAUs an to incredible

with quarter. to MAU LATAM in year. trajectory hold you'll in data also our a the deck, In in expected to Despite the iCasino generally demonstrates year a growth QX, some hold, was our during find further stability given $XX sports company, ARPMAU and our XX% quarter. ARPMAU financial sports unfavorable the there. Switching and on historical percentage during over investor line hold percentage the business Our our lower below sports range up strong on Latin our America online were reliance sports was our outcomes quarter additional as during of outcomes. the give performance perspective expected you the In lower betting, we of the

the for XXX XXXX. full year points margin was and to basis the compared full XX.X% year, profit for quarter XX.X% gross the Our up

increasing during as than and and to Our XX% QX. mix and Illinois from XXX gross for total Pennsylvania by margin Illinois markets outside away to other of from to Pennsylvania and points continued shift XX% basis Pennsylvania increased our revenue XX% Illinois,

remain very decreases in in operating relatively our less inverse markets those follow with expense. markets other partners creates the which but margins, also between market fixed our those under Illinois, Pennsylvania us X and our given consistent This profitability our us closely, which but spend and those marketing our increases, as grow. gross operating land-based marketing an decreases them on those our margins recall states. There's cost as our royalty that margins operate markets, in structure X for rate we For as Therefore, are you'll that dependence mature, our royalty steady. access relationship

produced came it and to to increase company small XX% the of improve increase towards with XXXX, to gross gross Pennsylvania that offsetting and net effect fact, When be fourth of for profitability. In our percentage the total non-Pennsylvania XX% to in expect expected from margins, margin gross margins comes XXXX. in some those with quarter other the to decrease markets a revenue full more markets, year in the Illinois in markets our continue than Illinois and revenue other we mix

the and down spend. greater side, Fourth stay from disciplined was promotion seeing $XX.X we On spend with quarter year. marketing continue $XX.X last million efficiency advertising to and are million,

from our share For ARPMAU. efficiencies the million spend increasing count advertising We the full last by from growing players see measured wallet larger promotion and year. user of million, down and was $XXX.X year, in a our getting $XXX.X evident active

and equated Looking do continued we see we'll again than for investments our at full marketing lower grows year spend in for marketing revenue precision X.X% the from to we our marketing the XXXX, shy forward when $XX.X of this opportunities, year. G&A the was to won't year, making expect so discipline was fourth $XX.X And and spend to revenue. see for while efforts. about rate leverage get we be that and million a quarter over X.X% million, revenue of which

we as and XXXX. some come the over modest the expense adjustments of had for much G&A have that will compensation in than X.X% get to in I'll employees. first in the come run note our increase leverage our expect rate annual less we XXXX, quarter G&A we in For that

We unrestricted small capital quarter use million we to to the year QX during sheet, the balance do full due had debt. of and timing, XXXX. of and in no cash with a ended flow for cash $XXX cash positive be the expect Turning to we working

full-year XXXX, We and guidance the fourth which quarter million $XXX to expect million, for and in midpoint, here $XXX our year. be XXXX revenue up the year We initiating revenue represents million over reflects currently XXXX. are XX% early momentum in strong $XXX at between which

our As of are those today. guidance includes that only as markets a reminder, live

to In during adding EBITDA we mix. are addition, guidance adjusted XXXX, the

that million For we $XX lines EBITDA represents expect $XX currently and $XX million, questions. be XXXX, midpoint. With adjusted for the between full please which year the open to at million the operator,

Operator

first Bernie McTernan the [Operator will with from Company. line question & Needham come of Instructions] Our

Bernard McTernan

Great.

Just with positive adjusted at wanted to this start Colombia is LATAM, assuming point EBITDA.

Just path wondering and up on Mexico. in on as to the profitability the follow EBITDA then well. timing I have And a

Kyle Sauers

has exactly profitable for Yes. turned go Mexico, when In see but Correct and getting a Colombia profitable, while quite for I'd ago. been on look time. quite it's have to some to real Mexico Colombia. us back close. is we

having nice we're think success I some real there.

prepared a things the nicely. in of lot well we As there, mentioned remarks, starting build to going

big you on certainly us keep profitability, it's at for we'll Mexico but this updated So not point. burn a

Bernard McTernan

been the state. there's in to of flow terms governor news a some the then Illinois in considering And change taxes gaming Understood.

thoughts terms that any wondering did of Street there's potential if if Rush in you the Just pull higher. have levers any go offsetting that then in impact fact could on and taxes that could

Kyle Sauers

Sure. Yes.

budget includes betting the doubling as the tax So you out, Governor's more of sports rate. point than

access note much Illinois, some the So because think partner potential structure than in it's of that on maybe of the our It's in expected. the I to not but in we'd obviously the that us is impact relationship market have favor something that with of smaller early change important session, be of.

proposed million. recently for have new XXXX, bigger impact the for there's have that would upshot been EBITDA is had it, that I around suppose the So impact in than tax maybe OSB the less frame that $X been and much negative than conversation revenue our to effect state potential rate. completed happening how in Illinois iCasino the on rate if increasing could

Operator

Oppenheimer. of Kelly the will next come question The from line with Jed

Joshua Marin

for Marin Kelly. in Josh Jed It's

iCasino how on RSI's just on on regulation. the thinking that it. curious pacing bit, guys iGaming a position about legislation Just are has have one you slowed so and

Richard Schwartz

Richard. is this Josh, Sure.

year know What more will is peers from enthusiasm can't our revenues our to is we that things. industry there's timing been the this state. that listen, to growing What generate there's in for the there a predict I introduced of bills say been these and a than long yes, we this have So, support more do time. and tax

for are we positive Alberta make very think momentum. that We it the we're is there's comments so excited like hoping more in won't a available growth because very certainly for them some have think past we really much some be the have right us. to to and are stakeholders others that to line, there. What are we're by been certainly don't certainly of America us the there's finish of but States, attention shortage are that that added in close is iGaming Some now while gaining pushing eager, public paying something of about United opportunities Latin exciting market that to we we states

so now. Peru other Brazil and that right our it And in regulating process markets of markets legalized are and like in or already

So available there. we we large casino where there can for have very us populations do

So of same which to having in why the in in our opportunities really have we excited because States shortage market no Latin have we of great down option terms we extent is have United don't peers have the this large really other America. we're that opportunities,

for So impact some push feel to to starting of not of tax we The justify their to are legalization. continue the having sufficient base will states costs.

tax base, increase means we see iCasino a more see And bases there's so for conversation possible more to efforts and because that that tax increase to and of states. around we efforts, as bridge

Operator

next of with JMP. the Jordan come from Citizens line The Bender question will

Jordan Bender

be competitive that the should then within guidance, operate does to more iCasino as with that that differ few contributor like? as some what on EBITDA in in your well of how states you as payback just a period just being I model positive A Delaware. well? look was wondering, does from there operating the And

Kyle Sauers

maybe for at be than should contribution for little us Gross but typical. say margins, margins us, below I'd North iCasino like markets first, will so, have be margin a quite average profitable or our margin gross operating Delaware, be on Delaware been should higher or other our So quickly. American

about So bottom the contributor us. the it there. and meaningful opportunity very we're already, over time. top the for Delaware, came of be us talked line a out It'll we will strong in be excited gate about We a contributor to pretty for nice so

Jordan Bender

just Understood. free the when with you at you flow, the you And to that begs on can free cash make of is Naturally then in use the sense or least 'XX, about Does of that produce M&A that? Anything cash question what opine best flow. ability talked just think capital allocation? here?

Richard Schwartz

at Listen, looking always highest to and or more additional we're the value more going evaluating shareholder newly-regulating capital existing investments we're to value. if We whether you markets want table. direct the create how in the else. returns, opportunities, do in looking all and are for don't always I investment markets. to maximize we're options add Certainly, anything all on we know it's

Kyle Sauers

us make Richard's to question opportunities. iCasino legislation, think investments be plenty places up. markets when to back open American Latin for There'll go I smart about of I'd No, new

So that's for first the I think us. priority

Operator

line Chad with Your from next Macquarie. will the Beynon question come of

Chad Beynon

is it below can we why flow EBITDA just low through the flow versus a clarification right being ramp, revenue is there. a anything the guidance, we to around when number be just New through? XXs, XXs. a of? the flow you or markets, following color is the just mindful else I On know items little XXX% revenues, looks about there you expected line but the from through XX% little bit more high need year some growth get that color extra growth Kyle, like did talked of

Kyle Sauers

Yes. No, it. appreciate

midpoint got math our flow of you've think there on the in XX% around right the through I guidance.

back and expenses, at significant the and for in if significant us, think more probably marketing pretty pullback you launching, pretty behavior. rational industry markets look I XXXX, less

make is that think year long-term guidance we're past careful about time as be for it, through the we offering goes good improve over right We offering to guidance, so offering think up improving sure I year. can time towards I out This us flow this putting want we're EBITDA first on. time. but to want can I there plans, the that work something first we the was we're that So

Chad Beynon

about And guidance, end sense. think, to low then makes that is revenue which what the is, that drive I of end would which Okay, the the high XX% main the XX%? you factors versus

Kyle Sauers

Sure.

So of about still into pretty quickly at lot prepared the continued I specifics fourth that of different each but growth end, 'XX. remarks. a probably in go mentioned in so evolving that won't factors thinking momentum nice We The We has really that a guide. the throughout give course, revenue acceleration you industry, into exact quarter. it's saw

grew lot markets launched outcomes. fourth over before always So this ranges range of hold we've remarks, the in out Sports got U.S. XX% to a We input. confidence an that million today. be $XXX XXXX, quarter. going we in due there mentioned sports our we in $XXX put million that to to That's opening the excluding but

so there. some some there's So fast-growing got variability we've more markets,

that. good that then live piece, chunk mindful of for just So recall we're of And a had we the Connecticut last maybe XXXX.

again in great it's Delaware, us had new. which but XXXX, Now that's gone we for is start, a new. It's but added

So in there. potentials of it itself a and range of has

all that So outcomes. that of crafting those think things range we I in are think about

Chad Beynon

you revenue to what Connecticut Are 'XX? willing standpoint contributed provide a from in

Kyle Sauers

It was round so. about million $XX or

Operator

The next with come line the Jefferies. of Ara Masias from question will

Araceli Masias Moreyra

growth online quarter. sports market color Congrats you as to on betting in give further international expansion it please some U.S. compares on markets? Could the further

Richard Schwartz

world legalized second online it betting. the region international fastest really I the to for the the in is growing region growth, America think when Latin comes

fact couple and to grow great not there. are for those to well that going North confidence in obviously So here America the years decades, going be that of as as markets we're and gives that us strong in America Latin just are a

would I market contested. in the sports very heavily is obviously that So U.S. betting the say

able of money already start every are that with their to real players operators to market be converted in a from fantasy Some new large database having betting. systems sports

You competitive a intensity. in have U.S., higher scenario where have a taxes relatively the you higher

in Latin growing, our expertise to focused business I into I my such in on do There effort, the launch we've years brand region a been that lot well being ground, mentioned there. in people it the market high America opportunity to you dynamic, very as having to us, take experienced able are very comments. develop you other who've think, break gives notes, successful that's on there from So something many by been be market a a technology, developing to grow fewer to in and my ago a a lift is does to early, and that as is challenging that localizing an able challenging really be it's for team your because of jurisdictions because just now there the continue in earlier

I are betting, So which the as also you much many hasn't been us, when the sports for of case U.S. including have in markets, casino and opportunity, think the these

a us we bit better area So we it's there, was focused it the an the we've on being for capital returns tax to felt rates, sports where like markets us. reasons, competitive have those for expertise direct that with higher obviously on, than and the more of our markets intensity betting little different, so to our newer some for

Operator

Craig-Hallum Capital from the question Sigdahl line The of Group. come next with will Ryan

Ryan Sigdahl

Curious on Delaware.

early but players from initial and metrics been it, those can So utilized. new user get you still share? promo follow-on deposits I downloads very but what curious you get share promos notable retaining have here, anything it's those app can our and deposits guys And on standpoint, after dollars

Kyle Sauers

success. good really had we've Obviously, Yes.

our approaching the we're players. we're we're make and operator promotions sure only there the new But think there. bonusing to fair to I

be that data think start. at reported higher our we you NGR, to in or that's look either nice can were GGR are said see a When won't they our you we're I the been that numbers than off and February state January. daily surprised you our from what really

So early. still pretty

make want about December where to January reported optimistic we since that don't put state trends on those we for on of December our useful data that are that but one activity include I'd point So does X out headed, out is XX. predictions follow guess we're the exactly of probably thing I for by was data. launched state The days things very sure. Delaware

look you that later to to from here at in the February when trending just So keep out when March. that want comes data mind you'll January in

Ryan Sigdahl

guys run some assumption? rate. what You mentioned or guidance, assumed million Is there is that in GGR $XX you other

Kyle Sauers

don't to there's range by of assumed what's guidance, there. in certainly Well, out start I'd market outcomes think parsing want a market but I the

a lot it just that about Certainly, our think and it's I a compare launched we of but to been where pretty excitement referenced Richard really improvement. there, launched, you was we've compared revenue before product dramatic we if the it, gotten I there's good casino engagement. know

level so anticipated. mentioned what from start of So, happening than the as Delaware earlier we the been new. some of a It's range in we of we're But one in variability because includes guidance just it's certainly expect faster answers, could I again, optimistic.

Richard Schwartz

think comments impact, last when Kyle's experience in And players. It But think available bring players happen the high it all on, and that this the And are innovative. really from in experience And the results you happen when overnight. offer prior quality aren't before it. massive really the differentiated great really launch, having years unique else to platform, they new platform. think we wasn't going a been a this of the same launched, that years, unique functionalities delivers clearly significant the immediate we've talked numbers differentiated to differential overnight When of the to back anywhere adding the a that country, it are quality the the impact. player quarter impact being our for found they've Ryan, going these for when online an switched that that see in and case reflective just reflective noticed us did positive all was I see in that play for to of that. XX we in really to aren't for experience increase what user content, we a players immediately I you our so years, many had that suggested and to the we fun that's and features we just prior to was expecting available visited past, only base us those you and their site instead about because exciting relative the and see was

Ryan Sigdahl

Product coincidence Yes, absolutely isn't here. matters. Performance for sure. a

job. a You nice guys are doing

last question. Brazil Moving for over to my

need with to in launch brand what RushBet the your acquire may it can that Do curious you a country? Just organically and know-how that be Is to share. plans brand you it? do

Richard Schwartz

Yes, sure.

visiting a been pretty there. sized So our large, evaluating for week there's actually team of We've conference a all years and decent contingent Brazil this there for the opportunities.

As a recently, to exciting more really us. market that created we mentioned, the opportunity addition iCasino that for

companies, with to stadium right strategy local in really all assess our the the well have can prepared companies, today sports research the to done the owners, is other market our resonate companies, share But really market all We from us. we're And there what what media players and to by that as the and teams, and had. have the getting tell really brand excited our gaming we time we're have for know not trying we retail is. strategy you that does conversations I spent

does is thing multiple one so allow though, in And well. to that keep market as mind, brands

considering something other So background. of brand so we're you overall, where in recognize and a I like but highlights really broadcasts in Spanish, lot think things viewed has a in our lot see that's we're But our to will Portuguese region that in the well. always that are that that nonetheless, countries. well as in I as brand of get opposed the it's you still done Brazil

to bring be will we think that not that of that we our to it strong bring in very in may and play brand market, one there only the but the So I it's assets is asset play market.

Operator

Benchmark Company. of Instructions] The with Mike from will Hickey the [Operator question line come next

Michael Hickey

'XXJust on the market. strong on curious. guys, Brazil and QX the Also Congrats,

into also wanted your baked to into planned your fact, market curious. I'm Kyle. Just 'XX in is guide, confirm, entry that And that

some has established Brazil pretty large think market operators. I gray a fairly with

competitive you being the from market is established that. gray intensity curious Just positioned see for how already and market the you're how you in much share that and think

Kyle Sauers

and take part then second let the comment the I'll on part. Richard Yes. first

EBITDA or the any do include the So of guidance, guidance, the not revenue any new markets.

So with year or expectations out that that If at in sometime to or next year for When update we same it's guidance, for later talked any happens happens, time. to update if till And earlier makes about Brazil. launch. the it that if Peru year, this we sense thoughts. the would we'll new necessary it move later and will

guidance markets clarity, in for revenue part only of the we're today for our just and So are profitability.

And so then I'll let landscape. Richard talk competitive about the

Richard Schwartz

of Mike, that sports But there happened primarily media the for number betting, in a well payments They those competitive invest focused well. haven't other landscape, operating as the local able offer in able of media been the as are number market casino although a for in hasn't on things some types years, They is of quite that companies. assets. drive of market operators one gray they in market of and local terms large of play. use larger volumes Google to been partners really to offshore supported haven't to haven't that

last while in chief finding so the overseeing will that database, having replacement. they're be a and The into translated So will database a brand the yet middle how some regulator seen have a year there resigned, in market. effort of that an are to advantage a and it's the regulated recently be

will legal last purchased find racing a what a launch say in unclear. our normalized So I've way horse a being have even trying itself of is even But value bit in little in couple more of market is to I able competitors years. country some locally the to of known that the the companies timing the

to of past. for I presumably of up local one them audience in you time is more the we'd way some benefits be direct and the would the will the in one have that a like, companies have licenses of able marketing have that benefits So being first reach think than open the

Michael Hickey

domestic your maybe Just business. a quick follow up on

your optimized obviously access agreements. market You've

to into out Massachusetts. not pulled decided Connecticut, of You go

Same a great had Delaware. obviously position. success cash got you've here some time You've in

You're looks cash 'XX. like, it flow positive, in

guess states idea, overtaxed, out curious that still optimized skip you think move big both that North iGaming. [ has as these on on opening going opportunity. offered was an to you've they Richard, don't licensed. all week, like on Carolina just entertain that here? forward Do that you and states you as basis one-by-one ] CAM I not pretty I'm you to you it's next that and like think focus new So that I were sports see or opportunities you I seems start legalize like markets now a you do domestically, over here betting think

Richard Schwartz

Yes.

operating rigorous we're process new adjacencies in competition, each the market evaluation the permitted where rates, products. truly markets that a in, we at basis, the of other evaluate on case-by-case it So looking very we're and terms nearby a is tax

we're of feel to at better to time are going in deciding a the these sportsbook-only all some looking ROI. return so get and some where we're investing And of cases in or the markets, of the other we we a on there's and considerations those those grow energy markets continue in markets better

typically than we quarter fifth or get and investment. a sooner will faster that sportsbook-only markets, we for in give you how our ultimately, want fourth you after We've of a so look some recovery market. launch, iCasino And investment, we much the fast markets much on with recovery to for get seen a profitability a

that cautious we're world to that we a think unique those the on I reasons, only tackle region and in United So we markets whole the not other we've for States. we're have very from additional opportunities very been in selective. And in that growth relying sportsbook-only have

Operator

At I the not will the Schwartz so this any Richard call for over time, we some questions closing have in registered to back do turn further remarks. queue,

Richard Schwartz

thank you Well, us joining for today.

couple RSI than in months. ever been forward future experiencing across we you We us. why when As momentum to hard in a look aspects share front updating results of our quarter progress to can of on I'm today excited more see, we're I've our the all of see has our opportunities not you about first strong It's business.

Operator

may Thank disconnect lines. call. today's concludes That for now you your you And your participation. all

Rush Street Interactive (RSI) 6 Mar 242023 Q4 Earnings call transcript