Rush Street Interactive(US:RSI)2021-05-13 16:00Financial Performance - The company reported a net loss of $76,000 for the three months ended March 31, 2021, compared to a net loss of $12.943 million for the same period in 2020[129]. - Adjusted EBITDA for the three months ended March 31, 2021, was $(15.071) million, compared to $1.051 million for the same period in 2020[129]. - Revenue increased by $76.6 million, or 218%, to $111.8 million for the three months ended March 31, 2021, compared to $35.2 million for the same period in 2020, driven by expansion into new markets and growth in existing markets[149]. - The increase in online casino and sports betting revenue was $75.5 million for the three months ended March 31, 2021, contributing significantly to overall revenue growth[149]. - The company experienced a net loss of $76,000 for the three months ended March 31, 2021, compared to a net loss of $12.9 million for the same period in 2020[149]. - The company experienced a net loss totaling $12.9 million for the three months ended March 31, 2021[166]. User Engagement and Market Expansion - Average Monthly Active Users (MAUs) increased year-over-year due to expansion into new markets such as Illinois, Colorado, and Iowa, as well as strategic advertising efforts[123]. - Average Revenue Per Monthly Active User (ARPMAU) increased year-over-year, driven by enhanced customer engagement in key markets like New Jersey, Pennsylvania, and Colombia[125]. - The company operates in ten U.S. states and Colombia, generating revenue primarily from online casino and sports betting offerings[130]. - The company plans to continue expanding its offerings across the United States and worldwide, which will increase capital expenditures and working capital requirements[163]. Costs and Expenses - Costs of revenue rose by $57.3 million, or 256%, to $79.7 million for the three months ended March 31, 2021, with costs as a percentage of revenue increasing to 71% from 64% year-over-year[150]. - Advertising and promotions expense surged by $33.7 million, or 398%, to $42.2 million for the three months ended March 31, 2021, representing 38% of revenue compared to 24% in the same period in 2020[151]. - General administration and other expenses decreased by $0.2 million, or 1%, to $16.6 million for the three months ended March 31, 2021, with expenses as a percentage of revenue decreasing to 15% from 48% year-over-year[153]. Cash Flow and Financial Position - The company had $363.6 million in cash and cash equivalents as of March 31, 2021, excluding customer cash deposits[161]. - The company had cash, cash equivalents, and restricted cash of $375.1 million as of March 31, 2021[174]. - Net cash used in operating activities for the three months ended March 31, 2021 increased by $8.2 million to $11.2 million compared to $3.0 million for the same period in 2020[166]. - Net cash used in investing activities for the three months ended March 31, 2021 increased by $1.7 million to $3.1 million compared to $1.4 million during the same period in 2020[167]. - Net cash provided by financing activities for the three months ended March 31, 2021 increased by $125.3 million to $128.0 million compared to $2.7 million for the same period in 2020[168]. - Cash provided by financing activities included proceeds from the exercise of Public Warrants of $131.4 million[168]. Risks and Uncertainties - The ongoing impact of COVID-19 presents material uncertainty and risks that could adversely affect the company's financial results[120]. - The COVID-19 pandemic has led to increased business volume during stay-at-home orders, although it has also caused disruptions in sports betting due to event cancellations[116]. - Foreign currency exposure was primarily with respect to the Colombian Peso, which accounted for less than 7% of revenue for the three months ended March 31, 2021[175]. - The company does not currently hedge its foreign exchange exposure[175]. Responsible Gaming Practices - The company has implemented industry-leading responsible gaming practices and aims to enhance user experience through personalized offerings[110]. Other Financial Metrics - The change in fair value of warrant liabilities was $41.8 million for the three months ended March 31, 2021, with no similar instruments in the prior period[155]. - As of March 31, 2021, the company had no outstanding debt and an outstanding letter of credit for $0.3 million related to operations in Colombia[164]. - The decrease in non-cash expenses of $30.1 million was driven primarily by a gain on the change in fair value of warrants liabilities totaling $41.8 million[166].