Rush Street Interactive, Inc. Oppenheimer 29th Annual Technology, Internet & Communications Conference
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All right. Thanks everyone for joining us this afternoon at the Oppenheimer 29th Annual Technology, Internet, and Communications Conference. My pleasure to have Richard Schwartz, CEO, Kyle Sauers, President and CFO of Rush Street Interactive. Rush Street Interactive, I think if you look over the last two to three years, has been the best-performing name in a very tricky sector for investors. So they've executed very well, very strong. So pumped to have them here to answer some questions. Richard and Kyle, thanks for joining us.
Great to be here, John.
Thanks, John. All right. So you reported earnings at the end of July, gave a solid beat and raise cadence across North America and Latin America.
Can you just talk about where you are seeing these pockets of strength across the businesses and what gave you the confidence to raise your full-year outlook?
Yeah. I can jump in, if you want, Rich.
Certainly I'd certainly add on.
I don't know if I'd call it pockets because it's pretty broad-based. I'd point to two main things. One is Latin America continues to be a big growth driver for us. Obviously, World Cup was a benefit to have that event, in June. Obviously, it'll impact Q3 with July as well, but that was a great event for us. Even without World Cup, our Latin American operations in Colombia, Mexico, Peru have been growing really nicely, and we expect that to continue. In North America, I think we continued to outpace market growth in just about all of the North American iCasino markets that we're in. That's the primary focus for us in North America, for player acquisition and product innovation and experience, and it's paying off for us nicely.
As you pointed out, we've beat and raised again for, it might be 15 of the last 16 quarters here. We've continued to be able to execute.
I kind of want to get into some of the month growth, but you just make a good point. I think there's not a lot of companies in the digital gaming space that have been raised in the last 3 years, 4 years. Is this kind of shows the power of having an 80% iGaming mix in North America and just sort of the revenue predictability you're able to get off that algorithm?
Well, certainly, it makes our jobs easier when talking to investors, to be more focused on iCasino, because you point out, it is more predictable. Nothing's certain, but when you're focused more on the slots category in North America, the tolerance is much tighter, volatility is less. You don't have the same level of seasonality that you do in sports. Although we enjoy that seasonality for the sports part of our business, that works really well in North America and also in Latin America. Your point is right, that being more focused on iCasino allows us to predict what's going to happen with our business, quite a bit better. It allows us to focus on what the value of players is likely to be, and therefore, what we're willing to spend to acquire new players, which obviously we've been doing at record rates.
We're actually even doubling down a bit more in the back half of this year because our cost to acquire players has continued to go down. So absolutely, it helps with the predictability. It helps with our ability to plan for investments, not only in marketing, but in people and product and technology. So I see it as an advantage.
I would just add as well that besides predictability, I think it's also nice that we have the focus. We know clearly where the economic engine is of our business, and by able to focus on the casino markets, we've been able to grow market share in North America casino for four quarters in a row. Again, validating that when you focus on the right things and you have the predictability that Kyle mentioned, we also have the focus, which allows us to continue to do the things we need to do to innovate and improve the user experience and deliver the results you're seeing from us.
Do you see a lower churn among your iGaming cohort versus your sportsbook cohort in North America?
You do, but it kind of goes back to your consistency of results. You have more consistency in the play. You do not have people who take a break for Major League Baseball because they like NBA and NFL as an example. It is a stickier audience.
Got it. When I kind of look at it, the one thing that always sticks out of the last three or four reports is the North American iGaming month growth. I think this last quarter accelerated 6% to 64%. When I look at where you are versus your peers, I think that growth rate is four to five times the industry. Some of the states you are operating in, some of these are like five-plus years with iGaming. Where do you see this significant relative outperformance? Is it better marketing, bonusing, or better game inventory? Can you kind of give us a sense of what is going out there without spilling your secret sauce to competitors?
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