A continued focus on efficient marketing spending and continued customer acquisition at attractive levels once again led to a guidance raise for Rush Street Interactive, the parent company of BetRivers.
Revenue for the full year is now expected to hit $910 million at the midpoint, up 32% from 2023‘s total of $691 million, the company said in Wednesday’s third quarter report. That should lead to adjusted EBITDA of $84 million at the guidance midpoint, up 24% from the prior midpoint.
That $84 million of expected adjusted EBITDA is 110% higher than what the BetRivers parent originally guided for 2024.
“These impressive results underscore our commitment to our long-term strategic objectives, which include being a leader in online gaming across the Americas,” CEO Richard Schwartz said.
Share price stable despite results, buyback
Rush Street Interactive’s stock popped in after-hours trading on the strong growth metrics, but it lost most of that growth Thursday.
The stock closed at $10.76 Wednesday and grew to $11.45 by Thursday’s open. Most of that was given back by the end of the day, though, as the stock closed at $10.51.
That is despite the positive results, upgraded guidance, and the announcement of a $50 million share buyback.
BetRivers player metrics up
BetRivers saw North American monthly active users grow 28% to 168,000. Average revenue from those monthly actives increased 4% to $388.
CFO Kyle Sauers attributed that growth to Rush Street Interactive’s data-driven marketing efforts. North American player acquisition cost was down about a third compared to last year, which saw marketing costs jump 13% to $38.6 million.
Despite the higher costs, marketing spending as a percentage of revenue was 17% in the third quarter, down 3 percentage points from last year. Marketing costs should grow sequentially in the fourth quarter to take advantage of the attractive cost to acquire players, Sauers said.
Latin America saw monthly active users more than double to 329,000, up 122% from the prior year, though average revenue from those users fell 9% to $39. The strong player growth stemmed from the Copa America soccer tournament in June and July, Schwartz said.
‘Incredible’ Delaware success for BetRivers
Schwartz called out Delaware as a “continued bright spot.” The state is close to a gross revenue run rate of $100 million off of “exceptionally strong” performance, he said.
That run rate is supported by iGaming revenue that is nearly five times what Delaware’s former iGaming operator, 888, achieved from online casino. Online sports betting is also seeing “solid success,” he added.
“The robust performance in Delaware is a real-time example of the impact of our product and operations teams delivering high-quality gaming experiences and our ability to drive substantial revenue growth in established markets,” Schwartz said. “Delaware continues to be an opportunity we remain very excited about.”
