What Happened: Shares of online casino and sports betting company Rush Street Interactive (NYSE:RSI) jumped 21.2% in the morning session after the company reported a 'beat and raise' quarter. Rush Street Interactive beat analysts' revenue, adjusted EBITDA, and EPS expectations. The company lifted full year guidance, which is above expectations for key line items. Zooming out, we think this was a great quarter that shareholders will appreciate.
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What is the market telling us: Rush Street Interactive's shares are very volatile and over the last year have had 48 moves greater than 5%. But moves this big are very rare even for Rush Street Interactive and that is indicating to us that this news had a significant impact on the market's perception of the business.
The biggest move we wrote about over the last year was about 2 months ago, when the stock gained 35.6% on the news that the company reported fourth-quarter results that blew past analysts' revenue, operating margin, and EPS expectations. This was driven by more monthly active users than expected in its U.S. and Canada geographies (160,000 vs. estimates of 151,000).
Off the strength of this quarter, management shared encouraging full-year revenue guidance of $800 million, clearing Wall Street's projections of $759 million. Zooming out, this was a great quarter that shareholders will appreciate.
Rush Street Interactive is up 80.4% since the beginning of the year.