RSI - Earnings call transcript Q4 2024 | Rush Street Interactive, Inc.

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Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Rush Street Interactive Fourth Quarter and Year-end 2024 Earnings Conference Call. [Operator Instructions] Please note that this conference call is being recorded today, February 26, 2025. I will now turn the call over to Kyle Sauers, Chief Financial Officer.

proceed. may You

Kyle Sauers

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

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

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

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

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

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

Richard Schwartz

the Good have Kyle. welcome built quarter I for afternoon, XXXX the over entire call. my couldn't dedication fourth we've to the begin and like been proud earnings by our Thanks, in to their our team to instrumental success. Their of hard be incredible outstanding gratitude work years. team and RSI efforts. I'd expressing more

key Your reason such a dedication is a competitive we excel in industry.

As end an positioned in while adjusted cash a profitability, our ever. many execute been key XXXX, I ahead. on flow, demonstrating we recent set year We've high undoubtedly best only importantly, significant also platform, to of success we initiatives concluded with advancements in scaling effectively. Most experiences, but KPIs, both this ability customer-centric record-setting made years the accounts our EBITDA, exceeding records reflect ourselves our technology believe for We year most guidance. not quarter other margins, our has in and user in revenue the in performance strategic and the revenue, we and have

the grew we For XX%. year, revenue

margin stands the expense reduced bottom the out XX% ability points, We basis marketing to over top growth last impressive, line. to gained and over year our was line what by G&A of drive growth compared While gross that was to costs. XXX leverage our expanded

increase for in adjusted XXx result, a EBITDA we the saw year. As an

expertise off. long-term creating focus Our experiences and differentiated and high-quality paying in user are

geographies, increasing newer both across both sports from mature and entire all our growth contributions while We achieved markets. our more and our have targets simultaneously and and iCasino profitability portfolio from

for us focus our take have positioned we of our progress, As stock X long-term on success. principles key

teams customer-centric First, clear product experience. user vision, approach seasoned user prioritizes technology, in-house requires operations It than deep innovative a teams, a is easier said our and This done. insights. world-class

and players our from elsewhere. Our rewards service This reducing deliver available unique in their experiences friction chances notice offering in-house take care our extra and win them proprietary through real-time in secondary content to to journey ways, and appreciate we of customer system. players exceptional system engaging how delights gaming including to fun not unexpected developed

understanding product of our These Second, technology in-house require a innovative investment often and diverse and development. features sophisticated features. our continuous supports in users new deep

technology Our curve. the commitment we of will ahead to stay ensure

and is a driven commitment evident leader as This results has online Americas. enhance across strong results, and recent Third, our approach in underscores gaming operational in scale our margins. to our becoming efficiency leverage we the to

performance, quarterly results, our pointing evaluate there as out. the a worth takeaways investors are few Regarding

earlier, over we've casino broad-based line referenced strong strength again was online online experienced each grew XX%. once performance growth. across sportsbook both with As Top and products,

XX%. are these We player and face player of XX%, outcomes in also and favorable revenue QX, strong are the strength in geographies. reinforcing results was LatAm continuing while grew This in values. grew consistency growth of our accounts Underlying North streams. player the experience across trends America to the diversification NFL online both

leading ability and of to and high increasing fourth In MAUs our North underlying with North and the focus America Latin $XXX. users. MAUs level a and effectiveness up growth accelerating we to retention. to of our strategic American This levels increase XX% The localized in growth. continued attract experience players, record by of quarter, XXX,XXX, were America, highlights to the true on our year-over-year XXX,XXX. teams growth retain to user XX% our year-over-year, engagement strategies our another at maintaining is company marking For ARPMAU consecutive increased testament ARPMAU while all-time an of fast quarter in

measured the in local year-over-year. $XX. and currency, Our When ARPMAU region increased sequentially in this both was

positive building laid Our in marketing strong efforts continue foundation quarters. to yield on previous results, the

are Our MAU by being and trends marketing targeted efforts. our driven data-driven and ARPMAU

attract audience users a have campaigns pace. broad digital traditional and very a leveraged at reach and Our new effectively to us solid allowing a of mix channels,

the marketing our by find While continued we've and we in Overall continue efficiency over of spend momentum deliver strong in years, results couple improve to maximize to strategies and to MAUs ARPMAUs. continues made evidenced tremendous as effectiveness. improvements new past our

to monitoring across exactly the XXXX is tax is and dollars U.S. States but and is important significant specific legalization like lack our and sites, Canadian and already XXXX. games fund closely unlicensed places shareholders opportunities. and happening there growing casino gaming way care states a The that we strong that taxes dedicated for unparalleled online cannot pay and generate to outcomes, other our and player sweepstakes experienced delivering critical several expansion into money online but no protect and players protections. safeguards remain and casinos recognition budget to providing an offer real initiatives in these are government regulated Regulation potential health are Canada, programs. We success gambling proven value the optimistic a experience and offshore XXXX look momentum sites sets predict United and feel in about legislative we users. in like and We to to foundation, sessions that unregulated maintaining a including our strong We through education, online casino provinces

call on remain over our for performance focus Our the that, delivering value turn I'll shareholders. With will and to driving Kyle. consistent

Kyle Sauers

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

profit Our balanced geographies. gross across and increased sports well full and In across both growth also iCasino in to the was fourth quarter and XX.X%. year quarter, margin the the

We revenue continued and diversity revenue our more the markets. drove in profitable improvements in growth higher our

the year. For prior XXX the full achieved We year, basis the in margin at year. of improvement gross was of improvement plan points ahead in gross versus quarter over profit throughout margin XX.X%, each an sequential

XXXX, we gross execute For improvements. to margins our to the continue cost continues and we revenue to improve expect as mix improve on

spend. to side, refine and our marketing stay On disciplined the we continue

more we we markets those to for returns, see We be in flexible spending where are opportunity investments. will continue with better and

and spend had Fourth last quarters, QX, last marketing our we or in achieving highest marketing quarter. was delivering importantly, fact, EBITDA and our XX% the compared marketing XX.X% another year. while spend In $XX.X revenue X to record increased over revenue quarter of spend million in leverage again of still spend once

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

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

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

a for EBITDA was increase the adjusted $XX.X Our X.Xx prior to of compared fourth quarter significant reflecting million, over the year.

year XX-fold in obtaining full our to very for high flow, In $XX.X cash able million tremendous We $XXX the adjusted million earnings. increased quality from increase made in in the business. leap more with year. cash no as increasing to flow-through ended than prior highlighting to year. of and see benefits were the year, earnings XXXX, million compared debt, EBITDA also the we We For of a $XX scale strong approximately from the of a an we a unrestricted what demonstrate

did authorization. shares we any quarter, not buy back repurchase under fourth the During our

expect be billion the We adjusted revenue billion which are We to up $X.XXX between year-over-year. and XX% XXXX. at represents guidance billion, currently $X.XX initiating and $X.XX full midpoint, for EBITDA year revenue

between full the and the represents which at currently adjusted expect million be up to year-over-year. year $XXX midpoint, EBITDA $XXX million $XXX we XXXX, million, For XX%

Colombia the end potential impacts Our include tax the tax EBITDA a in lasts year. with assumption recent the from revenue and guidance the ranges through changes range the of of business that for

among few saw last legal review a see during tax tax made the from currently review applicability the time players would for were tax months, decree next Colombian week, be a the deposits it temporary President the be we of administered. is has on Including on expect that we As our things, automatic and or several in which to There expected levy the decree, online X-K the If you is emergency betting anticipate challenges repealed into constitutionality. over our of upside an issued the accounts. to to this to, strong ranges. shortened, constitutionality other the guidance frame court's can of

our in, help other of success to players, difference bridge and of of markets includes movements we our monetizing ends high Colombian ranges are of questions. the and varying EBITDA investment attracting markets. the continued the and addition low levels potential the marketing only And of as and a today. With tax, that our for In live markets new considerations that existing as those our the the are growth revenue include currency non-U.S. that our between guidance in operator, lines that, please open guidance in reminder,

Operator

[Operator Dan question with Instructions] Fargo. first the is line Politzer of from The Wells

Daniel Politzer

U.S. First, there about any kind the up Latin there Is mentioned iGaming of quantify America could that kind further for XXXX, is guidance. how on as for you being growth lines, Colombia. thinking and what's you're it revenue XX% just of between Kyle, the you same along you about way that a and that And U.S. the in midpoint think then that way even or right unpack follow 'XX? separately, now? the of to growth within baked does any include

Kyle Sauers

Sure.

the the of to the end start both that it's and assuming just through So piece, revenue I'll sure that include Colombia our low make in high end and impact the of of absolutely EBITDA the place it's ranges with the for VAT, clear year.

-- to just that few of both included the think what we're were clear, sure be you Colombia, the the we're if end guidance. a listen, we've reversed that make that's our upside to this. So provides only shortened, bottom or that, want and for into just about days When to top we tax end

the expectation absolute we outcome impact out. the Colombia we're given At XX-plus include guidance, out the of the around almost and thinking turning at circumstances. And what the assume more percent there a all that the in business markets it's a high all learning end our played when here end about it's pretty will an growth of well it from the of more things and expecting I'd the our that growth for low Certainly that on much pretty year have go be, that's is of revenue as then markets. But bad iCasino. the guidance, how then other flush take side, while for coming of the we're to So might out.

know, that's of from been where here lot we continuing start in marketing. player our offer differentiation obviously have dollars so higher we've been the the QX. success product you of As investment QX values, putting really and to where in of more in where and a have we great far It's see

Daniel Politzer

these to the of for that Got in follow-up, obviously guess, headline I guidance think anything along proposed some for then just you and I more heavy lines? proposed states? myriad upside versus of of cycle in legalization states it's the path for those And something my a risk it. form And betting about in in maybe baking increases That's and helpful. across iGaming terms your iGaming. of have sports broadly, some been that how do taxes guess is risk pretty

Kyle Sauers

Yes.

So we've for of But the deposit markets full we I'll year, in outside tax changes we've we're that scenarios Colombia, it have tax, VAT included -- other assumed other of piece. in. the not guidance hit the where not

comment of Richard the go does have do for consider be landscape. around tax that course then And legislated we'd include the the not guidance. in extent have let and something guidance right the guidance I'll future, markets also any we we're future not in later might this changes. just including But any to not now year, were just our then sometime on that included legislation the live like So proposed we To approved taxes. new

Richard Schwartz

the there's Sure. increases, Dan, near-term doubt for states to actually ways, industry a a net-net looking at of no accelerates on beneficial need view some industry increase is opportunities. funds, but for both we taxes. subject of substantial to as it tax including the really clear while raise basis, tax And raise if cuts on states setback, a And are it we and it for expansion a in of online it's gaming especially our ways. believe display us

of is not funds. the towards play to of legalization legalization XX% adult can't to And one that sort options the know attractive It's online so of be today. And most U.S. raise large for proven let's the online we forget efforts. us work casino and population a population that to regulated available casino able of

net-net very ultimately, and for couple to the think gaming positive start near us represent the we for might as in the way achieve So their have to for you while the term need online see you a of hiccups, them a the accelerate that to substantial is goals. states generation revenue can

Operator

is of the with Sigdahl Ryan next The question Capital. Craig-Hallum line from

Ryan Sigdahl

Really to nice a results. Colombia on want minute. for stay I

somewhere to early, guess it's offering on think RushBet but the of is working from in you're there. that And how this first it's know the looks cost the So are others thus a you to, not you bonus to I the competitive the competitors cost strategy? I days. days least far then how standpoint, cost. your the retention out standpoint. along with a much couple of willing consumer. mitigate thoughts of kind kind of Many be to It know VAT of can first in the one you if think fanfare straight a I directly few of on is at passing passing appears consumer to like absorbing lot the middle,

Richard Schwartz

effectively. about and do vary. all this do maybe terms and levels the bonusing. of can fact mean feel really There's platform to of you Kyle. segmentation approaches that are manage we a like and mitigation proper situation players and Sure. I how of Why the our sophistications to don't determine I ensure we good lot in I that start are, different the common competitors on can trying add with element, others are the our technology very are positiveness from things to because the our to getting of most

our own smart nimble -- our to strategies. with ownership the and the provides we especially with think our with be -- us really have I of So ability platform bonusing

what pretty the seen and drastically. ensure their staying situations to doing approach already that and monitoring some with the course change is tweaking looking and our business. for players matter that And one you've think approach always and after we're most I modifying start operators we're really

really is our the so and competitors. into better more top-quality it's will I in a because detail platform the it So for to there should dynamic hard have think really confident fluid. which early, down through much get the this I But than to I'm that industry manage market, very team too and allow us say we best

Kyle Sauers

Things down out, Yes. already are mitigation, point well holding things it's early. as Maybe done we've just you super immediately. the on There's Ryan, there. up

mentioned the of different responses You kind competitive some this. of to

way of right, Richard we brand of have advantages we're to partners those We've costs look the we're you're we've got we're to allows our probably well we've then players. handling got We to like rest got And our that we've retain some because down in reduce to owning of marketing that. got and bonusing ability modifying competitors things to we're platform, share a a So out, are And think revenue. of spend, the that industry as there. the promotions. -- excite capitalized. do pointed feel and differently we impact. and help the than our our and really the with lot vendor us some proprietary some variable And strong engine player-friendly own I doing And

than it well so we're holding far. it are turn pretty better up will optimistic out things So could, and

Ryan Sigdahl

Great.

question, Delaware to second specifically. over to just my move For want

month. the way all results, triple really through et month January almost grew impressive every basically up last of cetera, digits, So sequentially,

Is in lean and let's that So year start can you think it better? is continuing to the XXXX the it's margin continue that market? I in year as market, even drive invest about Or of outperform. you really to guess, where to

Kyle Sauers

Yes.

So you're right.

ago. came growth, data really have month after strong for as sequential the think out you continued I not month too long clockwork. to out, almost like January We've point

over quarter, of And very, rate January. it so in so very in again run million the we're fourth the and reached that. GGR We proud $XXX then -- grew

I operating got lot fixed. margins margin a we've think are fairly but of from And from opportunity there more completely, there. our an perspective, not I still So perspective, fixed a think

of more rate think we is there. monetization, of So likely be players it's later Delaware going from there. going date about part Obviously early the the given in and in be to be growth grow more the lot year the new launch it's our driving at lot than to left left which a significant of there's to of but still opportunity player year, to the XXXX, right a just end room

Operator

question next The David of the Katz Jefferies. is with line from

David Katz

I what I the getting thoughts any And sweepstakes, of your lead lot discussion, of among helpful. just least wanted are, what it on us. raise that having. to to and think, a welcome it's be impact what to, would perspectives it can issue Curious at end,

Richard Schwartz

online you sort don't that's hear referenced there's not to it around casino, into product the earlier. states unlicensed a you like in regulated day, Yes, I is bit land-based free-for-all efforts activity of markets some taxed, is that casino, a that wild That proliferation in at not casinos ultimately you I have right little today. protected a this when that because think and mentality and now of regulated, the online get country are the what mean, dominant not end opposing regulated proliferating David. But the feels of the a the put looks product. and online the Sure, being plays on of west stopping is surprising I casino online and a a casino

brought game tries trying point what can even ensure And properly online There's is circumvent industry's it level. I on And interest and enforced it's proper playing gets gambling a are field regulatory into and there despite this to it there's to is consumers. well impact especially to many should minors absolutely, that product And casino regulated, frameworks. participants for think be lot protected. state-by-state being any the existence play tax that already all enforcement casino that might research the a casino to taxed of protect the tax on having those accelerator everyone playing is all products. and an of come it so to in laws great as want. So gaming the is they addition I to think needs gaming with to ultimately, states of is really ultimately, this certainly that ensure online existing, activity is that to ensure a legalize the a But of make an in that online laws, because

of current some winning So accelerating address to this arguments in I really iCasino favor that think legislation exists. there's issue

David Katz

drive product side. I'd product up updated cetera, bet for to ton and We that's your general hear margins. love their I And follow kinds sports and different me. just offerings, of a as spend sort in-play to talking wanted it commentary just to around the abilities et such the thoughts and on mix. betting things of mix about on betting And of time

Richard Schwartz

Sure. in-play mean known be of important is certainly an sports betting I category to betting. always

year decade betting. You in-game a see European and or markets frequency almost for seen what in for increases improvements, you've in X, -- of volume every

terms really and of historically category. interest drive focused that in sophistication of more that in on in fast daily in that build-up paced some we that knowing lot well on have really same results. category, soccer some the the of that in sports audience, certainly, the tennis soccer strong and a from some audience in-game traffic betting to we've invested area like of fantasy targeted podcasts achieved appeal competitors really us, tennis, in a beginning we've and the volume didn't of have that that very are have So the fact, and really lot very really our for and that And we've

on focused So we have and focus did that.

same-game the promotional for popular. that of the I built improving seen into difference a think you've they we and our parlays have we've some of effort experience is have us. have product area. to for to power, else, industry lot that referenced And are us being not that that from of unique making earlier put innovative as players mix available A our industry play are in a very these critical. anywhere I the props staying lot rest and really shown tools player also also has are But

So we're they doing to going of the you're continuing loyal at and different anywhere with player those unique doing invest counts in that's that something else, stay our and of types the you, day, realize end you're the player for experiences, they're helps players when like them something knowing and that isn't what drive available values. to and

Operator

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

Jed Kelly

of say Jersey just about you New circling larger and or -- typically regulation back like guess I do tighter raise period a with players back taxes, of more. companies, taxes, to higher there's generally Internet they see when the kind and in lean market

has want expect get while you under given It's to since back been scenario of we And lean operate? regulation. budget would X on anything? -- we been market point pace the do years? and is so catalysts kind slow mean, see past legalize. can And there over iCasino that's a have just the anything the how New seen needing you or you tax I why revenue. is But your then not any higher states deficits the you on future iGaming, start We just a in So Jersey, to position to would where marketing.

Kyle Sauers

Jersey first. take I'll piece New maybe the Jed,

area we too really obviously well have built a mean really it's early. base. We've in a probably the I country. solid capitalized. customer We're strong of think I that brand

competition. about to this dramatically but of think I got what's evaluate at to we happening that. that's the some the think being to you've tax mitigate talked marketing, the you're change that need don't and have level of would with situation I way means look you

it's I'll So we us I do Richard let a competitive And standpoint probably iCasino the for legislation. of say to talk about the early from there. kind think too what

Richard Schwartz

before. going sure. this ever than iCasino legislation, efforts more yes, into There's

it, from betting. anything a earnings efforts hear competitors the from that focused it didn't ago If was prior our you of and years about just you tremendous calls weeks, week listen couple was about iCasino, it this is really difference everyone on you'll all in to where a sports is previously legalize to where see which

and category. As have the base the lot more a profits from to improved this see you're iCasino focus tax increased, starting on

groups aligning together every strong so consumers of is in regulated that might tax more focusing fact in us markets. that, that or And it's minutes I a -- you it. as protecting on improving exists is get a industry in achieve But ago, not casino to result legalization with the alignment, the are this that in as online a not said being well happening already consumers U.S. taxed the or and point you sort accelerant really that state helps why make protect to and few of

making you progress. in in efforts that happening have think fact improvements the Alberta are I some

think is that I of shows it progress And spring legislative here. session, there's think happening some some expected, be week. are even this developments some there will I sort positive

have additional states the for moving the them to you're federal very to where forward, ways result to the forward regulated, but generate is to that for starting So and I willing an already said, the Alberta looking looking as are in sports as state income less perhaps states add-on. states that for achieve iCasino in states and simple legalized, to especially taxes. fund see cracks the past, -- betting incredible we're the to And is way a you see budgets start the government level to

this a the going those more than you're lot in you on have in based perhaps to I last movement think So see X area factors. year or

Jed Kelly

helpful. That's Great.

starting is that think you resonate to and the So governors? with message

Richard Schwartz

pressure. the starting I see think you're it's really now to starting to more

states of states gaming our In to for fact, and increase also that the industry pressure, an looking easy to start this governors to increase sort revenues, are as I do signs said the taxes is way for for to look the is earlier, from and to ways other it.

years. So has than that need the revenues to is percolate, for is and I starting past increase think the message state it been I to do more is think in

Operator

question from Macquarie. the is next of Beynon The with Chad line

Chad Beynon

M&A Kyle, Richard, buybacks. opportunities to ask and wanted about

the have looking the So given the this and the you opportunities? because you're at to continue is if will market side? of cash Can in you're for about And buyback the not help the tuck-in acquisitions for outlook participating us on the end kind maybe M&A magnitude there, of 'XX, it you think that build. quarter obviously of

Richard Schwartz

buybacks, the Sure. Kyle, take why you don't part of the M&A take it. I'll and

Kyle Sauers

appreciate question, the I Yes. Chad.

we're cash our position. think I with comfortable

executing I M&A indication cash timing to nicely. and activity on right, the of activity position buyback some You're build wouldn't about correlate our that should continue our with that.

are those ultimately I correlation. that while impact to go necessarily -- they direct can think each other, wouldn't I

any we stock So quarter back buy the fourth in our authorization. after didn't

We opportunistic. continue continue to to be situation. going We'll the are to monitor

I despite in confident tax we the in the intent and Colombia value. like what very in on felt guidance we're trends headwinds near-term driving of the obviously out throughout was with strong business business, here the that, think from particular, came and in shareholder face temporary we're the

So I'll talk some form landscape. about in share include Richard And buybacks. of M&A capital of that could the let returning

Richard Schwartz

to we on you and sort potentially. our profitable a best cash having can we of actively we're opportunities, a flow, focus options. and options about mean capital shareholders. opportunities of America considering unrestricted bolt-on flexibility and is balance great add Ultimately, our in company. $XXX sight deliver this our a focus can have lot sheet looking growing do our in that to improve what time. we at million business us assessing all of And have We invest to return gives in only do have it to do the have I the shareholders. options, Yes. for of Sure. cash what It's value very the anything on for business, line that clear We're a Latin our

So we we that's different active and always consider considering the all options, M&A do an I and variations all say. have team That's possibilities.

Chad Beynon

about and And Great. given MAUs the looking build and driving guidance simply not 'XX? we higher sports that hold, Or bottoms of betting you guys down features customers? of that's certain the sure think But it drive then out to product your increase the there kind guidance, in sports amount or implied those on expected are that is if not the an way hold top revenue building hold for of a improvements, you're you betting continue as up. at

Kyle Sauers

Sure. Thanks.

improved our combination and it of I'll include we outcomes We scenarios, this in that improved that So America. compared obviously, a of North that company improved both it's lot of in as given NFL plan in dealt hold our year with. the QX prior in sports it to those. sports hold a in America in year 'XX. despite the a And We Latin we all for we those. does different say guidance actually

we're mix There So a and that. improvements. product pleased pretty been of lot have with improvements

So expecting we are 'XX 'XX. in additional versus hold improvement

Operator

The Citizens. next line the of with question is Jordan from Bender

Jordan Bender

year implied in saw outlook. the what from Maybe just hurt business on Colombia to you the pretty the is much And up 'XX. for follow flow-through I that understand, shouldn't what The to a variable below 'XX in too model, downside. is so

kind of the And guidance? is case? the So is terms there baked why it out into in just conservatism to of that's call anything

Kyle Sauers

Yes. Thanks, Jordan.

last it's of year So guide is The compares XX% and flow-through good midpoint to XX%, year. point. around what was that our a this

plan marketing think last but we in compared so dollar maybe to year, the is XXXX. driver have XXXX. marketing We about spend XXXX difference the benefited decrease still increase XX% get flow-through actual nicely, And growth. but that that In revenue drove of primary XXXX, to line, from And just reduced absolute plans marketing between to and an the marketing leverage we spend. still XXXX to over

Jordan Bender

commentary the competitors from of outlooks lot come a include around then down. to And your continuing Great. promotions

around continue not see of you? ahead that currently So we lessens operational are competitive you, environment as any to the states as ease to you you're looking the environment competitive

Kyle Sauers

in have your entered from those? we reconsidering question a that we not past? And are Is the sportsbook-only the perspective is gist question? states the Jordan, that of

Jordan Bender

Yes.

As it to more a it does starts any to in guys competitive there? in you environment states attractive go OSB-only make operate you're not the ease, for

Richard Schwartz

will that So iGaming at the the we to future, entry, in the tax have in added. parameters rate, look future likely and be these the we be every to cost for jurisdiction

at in we've those the things that so And are looked past.

some at are all financial invest. might to see that the jurisdictions, diminished competitors the though start in that you of results have actually continue the looking are landscape, competitive number in and markets carrying think I ones of to a these still even these you

that whether have think outlook have We -- into opportunities many us front opportunities markets or to an decide have them want American unless we I jurisdiction all markets get where go there's to don't are always in But we into we we Including haven't we Latin that great because something change other the it's to we the gone So of ahead that going that of to we can't there raise an so to going look we see there them. at us. isn't of is think in. I opportunity, iCasino think all. accelerated be that opportunity level in

to going not don't a market we're see we strategic sort value of for company late the where just betting us in outside a of business. chase sportsbook sports term longer So really

Operator

is of Susquehanna. from line with Stauff Joe question next The the

Joseph Stauff

pretty I how growth to North fair the you ARPMAU. about ARPMAU than faster Is that then to now. the iCasino. was wondering I the growth? on you going think assume It's it On that finite growth almost American so a a speak, growth grow 'XX, market outlook versus related of to user in is curious think within level you And comment user just in was about right if would can penetration, topic,

grow where really is iCasino, to have that been of to states. You guys are of that all well opportunity And kind adults in the we set operating and wondering, to choose rate really doing continuum? those penetration the and expand use I'm in

Kyle Sauers

Yes.

So start. I can

look grew the player highest from, I last growth that you and North be the coming of versus quarter a quarter, mean ARPMAU on combination I this I'd going is think we if for that MAU the expect by mean, our to year. XXXX, throughout at counts and just it's I where both. XX%, nice the America was

even from last the benefited counts throughout numbers years. without in accelerating almost X would year. we user for, in those sequential geez, we But the Delaware, had Now have Delaware

growth. even So more that iCasino ex Delaware, than count we've And had in of has markets really markets. good been sports user

come -- growth sports to players, casino MAU So some down players ARPMAU than generally being to in it's more some is growth more we players we're bringing that are of of value going whether player more and or valuable. it casino

both So and those of be I be driving think revenue there's for to balance growth the a an nice there. opportunity

Richard Schwartz

could the of I level in very jump state guess has maturity on a maturity. I of the markets. Every

Jersey has first most do Of course, to one. iCasino. New for us, been recent the And was the Delaware

that you're of in markets European markets, regulated in markets ago, seen up years growth European I the that and these the years is you've mature what least rates. So saw New the the in XX you grew at most that growth. consistent U.S. record to at markets And Jersey seeing the in that in have continued grow market all growing, here still are even

what get And that everything that tried think there's hasn't gaming. So time, over the becomes more you and else iGaming I you'll as is try to population many digital willing large people digitalized, a of see embrace in more benefits markets.

year class a top larger of players digital. online the will iGaming casino of of maintain every the you on and always but bases time. that You become the that, of by existing player you benefit new every still see try getting to -- land-based a But age those an people grow gamble, for more you both are see first there's the will even and increased states proper the people land-based in number to populations play still that revenues, to only states be start the also And from just year. have audience also their going

European I prior European to experiences market my think consistently not the in markets you on the based me U.S., and you'll see that look this industry, that has up. opening markets, in to growing to I U.S. it expect would surprising as So been -- that it's back just it's continue that in other

Kyle Sauers

Yes. that have their TAM the industry feels have and under-putted kind all keep the time analysts like on raising of covered to everyone them has on this time. It estimates after

got grow. maybe right there's continue it seems opportunity but to this for at everyone's sure to that like So point, it

Joseph Stauff

was Yes. in And half. wondering open could if And second I'll I like wide I guess I appreciate could. a can in And if versus is reasons half I'm think the that first certainly reacceleration you part aggregate. it of was the X iCasino you you question that why there is comment if growth leave on we the wondering response. in maybe

Richard Schwartz

and seen think Joe, day. getting as you simple is focus I we and we're we better increasing ourselves, see that had the done -- and both. It's getting you've growth. and on we've releasing we're product innovations, increasing mean I can values, we've player of and player to tremendous player and know at Yes, that need counts new And about everything this doing, counts, features really end great

that, that players do nicely. you your if business do you're grow a And So great you to by user offering going experience.

focus which described. we we and things control, And so what exactly what execution do is we the on that is I can

Operator

pass conference looks Richard the to Instructions] would closing last question. to for like [Operator It any last back now like our over remarks. was the question I

Richard Schwartz

on thank our updating the spring. in progress again look Well, it. you results joining Appreciate us to our quarter forward you We when today. for we first share

Operator

the your Thank for enjoy of and rest participation, That day. you call. concludes today's your

Rush Street Interactive (RSI) 26 Feb 252024 Q4 Earnings call transcript