Rush Street Interactive has already raised its guidance twice this year, with investors in the BetRivers parent hoping it happens again this week.
Rush Street Interactive will hold its third quarter earnings call at 6 p.m. Wednesday. It would likely take a particularly bad call to upset investors of RSI this year given the stock closed at $10.32 Friday, nearly triple the price from this time last year.
The stock for the BetRivers parent company recently hit a 52-week high when it closed at $11.41 on Oct. 11.
Upgrades on BetRivers performance
Rush Street has already announced some significantly upgraded guidance for 2024.
The company forecasted guidance midpoints of $800 million for revenue and $40 million for adjusted EBITDA when it announced its 2023 results in March. Those midpoints now sit at $880 million in revenue and $68 million in EBITDA after two revisions this year.
CEO Richard Schwartz said the company’s growth so far this year comes down to its balanced strategic initiatives in the second quarter earnings release.
“The improvement in our results is a direct testament to the strategic decisions we have made over recent years, as well as constantly refining and bettering our approach to attracting and retaining players,” Schwartz said. “The efficiency is leading to strong increases in the number and value of our users.”
Delaware has big Q3
Schwartz also noted in the last earnings release that BetRivers continued to excel in Delaware, and the third quarter was no different.
Rush Street won the exclusive right to offer Delaware online casino and sports betting, taking over for 888, which has since exited the US. The difference between the products and the subsequent results is night and day.
Third quarter operations for 888 in 2023 led to $71 million in slots handle, $38 million in table drop and $3.4 million in combined revenue. Compare that to the $270.2 million in slots handle, $218.1 million in table drop and $16.8 million in combined revenue from the third quarter this year.
Sports betting totals also took a significant leap with BetRivers offering online betting in the state for the first time. BetRivers drove $5.3 million in revenue from $43.4 million in handle compared to retail totals of $1.6 million in revenue on $12.3 million in handle for last year’s third quarter.
International opportunity, too
While there is still opportunity to improve and refine operations in North America, Rush Street also has plenty of growth opportunities in Latin America.
The company expanded to Peru in late July, joining Colombia and Mexico as live markets in Latin America.
The company is also considering expansion in Argentina, Brazil, Chile and Ecuador.
