Rush Street Interactive stock is on a run that the BetRivers parent has not seen in years: the price is steadily rising.
RSI spun off as its own public company at the end of 2020. The share price bounced around with highs near the $20 range in the first year but started to fall about a year later, continuing to tumble and ending 2023 at $4.49.
Since then, though, the stock is up more than double and closed above $10 this month for the first time since March 2022. Shareholders of the BetRivers parent would love to see Wednesday‘s earnings call serve as another spark to send the price higher.
The stock closed at $10.06 Thursday.
BetRivers on pace with new guidance?
Rush Street Interactive had a record first quarter, which led CEO Richard Schwartz to announce new guidance on the quarterly call in May. Adjusted EBITDA is now expected to be between $50 million and $60 million on revenue of $810 million and $860 million.
The second and third quarters will have tough comparison periods, though. Both sports and iGaming hold were at the higher end of expected ranges in those quarters last year, CFO Kyle Sauers said on the first quarter call.
Huge growth is not necessarily needed to keep the market happy, though. Improvements on sports betting and iGaming products as well as key performance indicators could be just as positive for the stock.
LatAm growth key for RSI
Rush Street’s Latin American operation is an important growth area that took big jumps in the first quarter.
The segment saw monthly active users jump 72% to 224,000. Average revenue per monthly active user spent $43, up 4% from last year.
Chad Beynon of Macquarie noted the loss by Colombia in the Copa America should be a positive for Rush Street, which gets 13% of revenue from Colombia.
Did BetRivers keep costs down?
Rush Street has been successfully growing its business while cutting costs, a key factor in profitability for any company but especially those without the scale of a DraftKings or FanDuel.
BetRivers saw robust first-time depositors in the first quarter. It was the most since New York launched in the first quarter of 2022, Schwartz said.
Those depositors were efficiently acquired, too, with cost per customer less than half of what it was in Q1 2023, he added. That is an impressive feat considering BetRivers launched a sports betting and iGaming monopoly in Delaware late last year.
Likely no acquisition talk
Rush Street Interactive has reportedly been in play over the past months, but nothing has substantiated beyond rumors at this point.
Schwartz sidestepped a question about the company reportedly pitching itself to DraftKings last time but noted management are “substantial” shareholders and the team will continue to do its job to maximize value.
