Rush Street Interactive(US:RSI)2026-01-12 21:32Financial Data and Key Metrics Changes - For 2025, the company expects revenue to be a little over $1.1 billion and Adjusted EBITDA to be $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 increase 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][8] Business Line Data and Key Metrics Changes - The revenue mix is approximately 70% from online casino and 30% from online sports [3] - The company has seen significant growth in player count and gross gaming revenue in Colombia, despite previous tax headwinds [18][19] - In Mexico, the company experienced over 100% year-over-year growth, aided by the shutdown of competitors [25] Market Data and Key Metrics Changes - North America accounts for about 85% of the company's operations, with 15% in Latin America [3] - In Michigan, the market revenue increased by 18%, while the company's revenue surged by 50% [5] - The company reported strong growth in New Jersey and Ontario, with increases of around 20% [10] Company Strategy and Development Direction - The company focuses on a customer-centric approach, prioritizing online casino over sports betting, which is seen as a long-term growth opportunity as more states legalize online casino [3][4] - The company is exploring new market opportunities, including Alberta and Maine, which have recently legalized online casino [11][12] - The competitive landscape is evolving with the introduction of prediction markets, but the company views it as more of a distraction than a direct threat [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the product and technology, which have contributed to attracting and retaining customers [6][8] - The company anticipates continued growth in existing markets, with all online casino markets growing more than 20% annually [14] - The management is optimistic about the potential for growth in Colombia and Mexico, with plans to increase marketing efforts in these regions [21][30] Other Important Information - The company has a unique approach to technology, focusing on enhancing user experience through promotional games and community engagement, which has resulted in higher average revenue per user compared to competitors [34] - The company has licenses in all competitive states except Connecticut and Rhode Island, with a strong presence in Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia [35] Q&A Session Summary Question: What are the growth opportunities in North America? - The company sees potential in new markets like Alberta and Maine, which have recently legalized online casino [11][12] Question: How does the company view prediction markets? - The company considers prediction markets as more noise than a threat, focusing on its core business instead [15][17] Question: What is the situation in Colombia regarding taxes? - The company faced a 19% tax on deposits in 2025 but has since transitioned to a VAT on revenue, which is more favorable for profitability [18][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 in North America [40]