Why Rush Street Interactive Shares Are Jumping Today
Portfolio Pulse from Lekha Gupta
Rush Street Interactive, Inc. (NYSE:RSI) shares surged after reporting Q4 financial results surpassing estimates and providing 2024 revenue guidance above expectations. Q4 revenue was $193.85 million, a 17% increase year-over-year, beating estimates of $178.83 million. Adjusted EBITDA was $11.5 million, a significant improvement from a $17.3 million loss in the prior year. Monthly Active Users in the U.S. and Canada grew 7% to 160,000, while Latin America saw a 33% increase to 204,000. Adjusted EPS was $0.01, outperforming the expected loss of $0.03. The company ended the year with $168 million in unrestricted cash and cash equivalents. For 2024, Rush Street anticipates revenue between $770 million and $830 million, exceeding the $759.25 million estimate, with adjusted EBITDA projected at $35 million to $45 million. Shares rose 12% to $6.04.

March 07, 2024 | 5:12 pm
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POSITIVE IMPACT
Rush Street Interactive reported impressive Q4 results, with revenue and adjusted EBITDA surpassing estimates. The company also provided optimistic 2024 revenue guidance, significantly above market expectations.
The positive earnings report and the optimistic future revenue guidance are strong indicators of the company's financial health and growth prospects. Such positive news typically leads to increased investor confidence and can drive the stock price up in the short term.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100