Rush Street Interactive earnings: what to look for from RSI

What happened

Rush Street Interactive, an online casino and sports betting company, will report earnings this Wednesday after market hours. Last quarter it reported revenue of $393.8 million, up 46.3% year on year, and its full-year revenue and EBITDA guidance topped analysts' expectations.

Confirmed

Global impact / market context

The prior quarter's strong revenue and guidance beat set a high bar, so this report will show whether growth is holding up. Analysts expect revenue to rise about 39.8% from a year earlier, a slower pace than last quarter, which could shape how investors judge the company's momentum.

Analyst inference

Analysts have kept their estimates steady over the last 30 days, suggesting they expect the business to stay on course. Rival consumer discretionary companies have already reported mixed results, and Rush Street Interactive has a history of beating Wall Street expectations, which frames how investors may read the upcoming numbers.

Analyst inference

What to watch

1. Watch whether reported revenue matches the roughly 39.8% year-on-year growth analysts expect, compared with the 46.3% increase reported last quarter and the 19.7% increase in the same quarter last year. Confirmed
2. Watch whether management raises or repeats full-year revenue and EBITDA guidance, which means earnings before interest, taxes, depreciation and amortization, after last quarter's guidance topped analysts' expectations. Proposed
3. Watch whether actual revenue beats or misses the consensus estimate, because the company's history of exceeding expectations and steady analyst estimates mean even a small miss could change investor positioning in the stock. Analyst inference

Evidence

• stockstory.org