It s earnings season for sports betting companies and Rush Street Interactive, parent company of , reported its Q2 2023 results yesterday afternoon, noting revenues of $165.1 million, an increase of 15% year-over-year from the second quarter of 2022.
RSI also reported a positive $1.2 million in adjusted EBITDA during the second quarter of 2023, compared to an adjusted EBITDA loss of $18.6 million during the second quarter of 2022.
Richard Schwartz, chief executive officer of RSI, said during the earnings calls that the company could very well be profitable again in Q3 2023 and perhaps for the full year.
RSI s Strong First Half Performance
Schwartz noted that RSI was able to achieve positive adjusted EBITDA ahead of schedule for this year.
Through the first half of the year the organization performed exceptionally well, achieving positive adjusted EBITDA ahead of schedule. This performance capped our strong first half with an adjusted EBITDA improvement of over $54 million compared to the first half of the prior year. This increase in profitability was mainly driven by operational improvements, as well as 15% revenue growth, led by strong growth in Colombia and markets that we launched after 2020, he said in a .
The company did experience a net loss of $16.7 million during the second quarter of 2023, but this was a reduction in net loss compared with 2022 Q2, which saw net losses of $28.3 million.
The company has experienced growth in online casino and sports betting in the United States, Schwartz said, and more states are considering legalizing iGaming in the next year. Legislators are likely to consider legalization efforts in Maryland, he said, and New York should have a strong push to legalize in 2024 as well.
We have built a fundamentally strong business with a firm foundation. Looking ahead, we are optimistic about our ability to innovate and continue to improve the quality of the user experience. With a solid financial position, a proprietary and scalable technology platform, and effective operational discipline, we are confident in our ability to continue executing successfully, positioning ourselves for further revenue and profitability growth in the future, Schwartz said.
Profitability in Second Half?
It s early in Q3, Schwartz said, but RSI is tracking well so far in the second half of 2023.
There would be scenarios that would cause us to be profitable, or adjusted EBITDA profitable, for the full year. Thinking about the back half of the year, specifically, in the prepared remarks we re still very confident in profitability for the second half. We re very excited about what we achieved here in the second quarter. Q3 could well be profitable as well, it kind of depends on where revenue comes in. Seasonally it wouldn t be unusual for Q3 revenue to be flat, or potentially down from Q2, we ll see where it shakes out, he said during the earnings call.
If revenue comes in even with the second quarter, Schwartz said, Q3 could be profitable for RSI from an EBITDA perspective.
We re still very excited about profitability for the back half of the year. Certainly within the guidance range we ve given, it s possible for us to be profitable for the full year, he said.
