Kyle Sauers, Chief Financial Officer of Rush Street Interactive, Inc. (NYSE:RSI), recently sold 25,934 shares of the company's Class A Common Stock. The transaction, which took place on November 13, 2024, was executed at a price of $12.30 per share, amounting to a total value of approximately $318,988. Following this sale, Sauers retains ownership of 338,614 shares in the company. The sale was conducted under a pre-arranged 10b5-1 trading plan established on August 8, 2024.
In other recent news, Rush Street Interactive (RSI) reported a record-breaking Q3 in 2024, with revenues reaching $232 million, a 37% increase from the previous year. The company's adjusted EBITDA also saw a significant rise to $23 million, marking a fivefold increase year-over-year. These strong results led RSI to update its 2024 revenue guidance upwards by 3% and its EBITDA guidance by 24%, now forecasting EBITDA to be 110% above initial expectations for the year.
Monthly Active Users (MAUs) grew significantly in both North America (28%) and Latin America (122%). RSI also announced a share buyback program of up to $50 million and reported a strong cash position with $216 million in unrestricted cash and no debt. The company raised its full-year 2024 revenue guidance to a range between $900 million and $920 million, and EBITDA expectations for the year have been increased to between $82 million and $86 million.
RSI is exploring expansion into new markets, with a focus on Latin America and Canada, and is open to potential acquisitions. Despite robust growth, RSI faces challenges with low hold rates in North American sports betting and potential regulatory risks such as tax increases. However, the company remains optimistic about iGaming legalization momentum in various states and plans to invest further in marketing, particularly in high-growth markets like Latin America.
InvestingPro Insights
As Rush Street Interactive, Inc. (NYSE:RSI) continues to make waves in the online gaming industry, recent InvestingPro data sheds light on the company's financial health and market performance. RSI's revenue growth has been impressive, with a 30.31% increase in the last twelve months as of Q3 2024, reaching $863.77 million. This growth trajectory aligns with the InvestingPro Tip that analysts anticipate sales growth in the current year.
The company's stock has shown remarkable strength, with a 135.31% price total return over the past year. This performance is reflected in another InvestingPro Tip, which notes RSI's high return over the last year. Despite the recent insider sale by CFO Kyle Sauers, the stock's momentum appears robust, trading at 89.33% of its 52-week high.
It's worth noting that while RSI holds more cash than debt on its balance sheet—a positive sign for financial stability—the company was not profitable over the last twelve months. However, analysts predict profitability this year, suggesting a potential turnaround in financial performance.
For investors seeking a deeper understanding of RSI's prospects, InvestingPro offers 13 additional tips, providing a comprehensive view of the company's financial health and market position. These insights could be particularly valuable given the stock's recent volatility and high valuation multiples.
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