Rush Street Interactive(US:RSI)2026-01-12 21:30Financial Data and Key Metrics Changes - For 2025, the company expects revenue to be a little over $1.1 billion and Adjusted EBITDA to be around $150 million, with solid growth anticipated for 2026 [4] - Monthly active users in North America increased by 34% in Q3, with a notable 46% year-over-year growth in markets with online casino offerings [8][9] - The cost to acquire players has decreased, contributing to record numbers of first-time depositors in Q2 and Q3 [6][7] Business Line Data and Key Metrics Changes - The revenue mix is approximately 70% from online casino and 30% from online sports, with a focus on online casino in North America and sports betting in Latin America [3] - The company has outperformed competitors in key markets like Michigan, where revenues were up 50% in October and November [5][10] Market Data and Key Metrics Changes - North America accounts for about 85% of the company's operations, while Latin America makes up 15%, with significant growth opportunities as more states legalize online casino [3] - In Colombia, despite a challenging tax environment, the company has seen growth in player count and gross gaming revenue [17][18] - Mexico has shown over 100% year-over-year growth, benefiting from the shutdown of competitors [24] Company Strategy and Development Direction - The company adopts a customer-focused approach, prioritizing online casino over sports betting and being selective in capital investments to balance growth and profitability [3][4] - New market opportunities are being explored, including Alberta and Maine, which have recently legalized online casino [11][12] - The company is cautious about entering Brazil, waiting to assess the market dynamics before committing resources [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the product and technology, highlighting the importance of customer engagement and retention [6][34] - The competitive landscape is evolving, with management viewing prediction markets as more of a distraction than a direct threat [15][16] - The company anticipates continued growth in existing markets, with all online casino markets currently in operation growing more than 20% annually [13] Other Important Information - The company has a unique technology approach that enhances user experience, contributing to higher average revenue per user compared to competitors [34] - The company has been profitable in the fourth quarter of operation in every online casino market launched in North America [40] Q&A Session Summary Question: What are the growth opportunities in new markets? - Management highlighted Alberta and Maine as potential growth catalysts, with Alberta finalizing regulations and Maine recently approving online casino [11][12] Question: How does the company assess competition from prediction markets? - Management views prediction markets as noise, primarily affecting states without legalized sports betting, and does not plan to lead in this area [15][16] Question: What is the impact of the tax situation in Colombia? - The previous 19% tax on deposits was challenging, but a new 19% VAT on revenue is seen as incrementally positive for profitability [19][20] Question: How long does it take to break even in new states? - The company has been profitable in the fourth quarter of operation in every online casino market launched, with investment recovery typically within six quarters [40]