Rush Street Interactive(US:RSI)2023-11-01 16:00Financial Performance - Revenue for Q3 2023 was $169.9 million, an increase of 14.0% compared to $148.0 million in Q3 2022[21] - Net loss for Q3 2023 was $13.4 million, compared to a net loss of $22.7 million in Q3 2022, representing a 41.0% improvement[21] - The company reported a comprehensive loss of $11.9 million for Q3 2023, down from a comprehensive loss of $24.0 million in Q3 2022[24] - Net loss for the nine months ended September 30, 2023, was $54.6 million, compared to a net loss of $103.3 million for the same period in 2022, indicating a significant improvement[30] - Adjusted EBITDA for the three months ended September 30, 2023, was $4.1 million, compared to an Adjusted EBITDA of $(12.5) million for the same period in 2022[122] - Revenue for the nine months ended September 30, 2023, increased by $70.6 million, or 17%, to $497.3 million, driven by growth in online casino and sports betting revenue[151] Operating Costs and Expenses - Operating costs and expenses totaled $181.6 million in Q3 2023, up from $168.6 million in Q3 2022, reflecting a 7.5% increase[21] - Costs of revenue rose by $12.8 million, or 12%, to $116.2 million for the three months ended September 30, 2023, with costs as a percentage of revenue decreasing to 68% from 70% year-over-year[144] - General administration and other expenses increased by $6.4 million, or 40%, to $22.4 million for the three months ended September 30, 2023, attributed to higher personnel and administrative costs[146] - General administration and other expenses for the nine months ended September 30, 2023, increased by $16.4 million, or 34%, to $64.6 million, consistent with business growth[154] Cash and Assets - Cash and cash equivalents were $171.2 million as of September 30, 2023, compared to $179.7 million at the end of 2022[20] - Total current assets decreased to $223.4 million as of September 30, 2023, down from $264.5 million at the end of 2022[20] - Total assets decreased to $314.820 million as of September 30, 2023, from $350.346 million as of December 31, 2022, a decline of 10.1%[20] - The company reported a cash balance of $176.2 million at the end of September 2023, down from $225.3 million at the end of September 2022[30] Shareholder Equity and Liabilities - Total liabilities decreased to $152.5 million as of September 30, 2023, compared to $159.5 million at the end of 2022[20] - The total stockholders' equity as of September 30, 2023, was $162.3 million, a decrease from $190.9 million at the end of 2022, primarily due to net losses[26] - The accumulated deficit increased to $136.590 million as of September 30, 2023, from $120.012 million as of December 31, 2022[20] Market and Competitive Environment - The company continues to face intense competition in the online casino and sports betting industries, which may impact growth prospects[11] - Future growth may be hindered by regulatory challenges and the need to maintain competitive offerings in various jurisdictions[11] - The company operates in 15 U.S. states and three international markets, generating revenue primarily from online casino and sports betting offerings[124] Marketing and User Engagement - The average Monthly Active Users (MAUs) decreased due to a strategic reduction in advertising and marketing efforts, particularly in online sportsbook-only markets[116] - The company utilizes a return-on-investment model for marketing spend, optimizing based on various performance metrics and customer behavior[137] - The company’s social gaming products serve as a marketing tool to engage users and cross-sell real-money offerings in authorized jurisdictions[133] Regulatory and Compliance - The company has been issued $28.0 million in surety bonds to satisfy regulatory requirements related to securing cash held on behalf of customers[1] - The company has a history of losses and may continue to incur losses in the future, which could impact its financial condition and growth prospects[11] Investments and Future Outlook - The company incurred $26.1 million in net cash used in investing activities during the nine months ended September 30, 2023, compared to $20.1 million in the prior year, reflecting ongoing investments in growth[30] - The company anticipates increased capital expenditures and working capital requirements to support growth and expansion into new markets, particularly in North America and Latin America[167]