Rush Street Interactive, Inc. (NYSE:RSI) Q1 2024 Earnings Call Transcript

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And so I heard hold and seasonality and FX, but maybe if you could just double click again on your guide on the top line, given that your first quarter is sort of 26%, up the midpoint of your raise here and it seems like that’s a pretty conservative raise given that backdrop? Thank you.

Kyle Sauers: Yeah, I’ll take that one first, Mike. And so I think you heard it, there’s a bit of a tailwind more so in Q1 than it is in Q2, but still there in Q2 and then absent in Q3 and Q4, given where the exchange rate is right now for Colombia. And then Q2 and Q3, a little tougher comparables with better hold last year. And I think the other thing just to keep in mind, it’s a good point about — if you go back and look at history and how our revenue has progressed throughout the year. I think the thing that is different at this point around that cadence is that we don’t have two, three, four markets that are launching each year that are in the super high growth phase or maybe even had negative revenue in the first quarter that it launched and then turned positive that would have aided that sort of cadence throughout the year.

So we’ve put out a new revenue guide and increased it nicely. Certainly, we had a really, really nice first quarter, but we — it’s the range that we’re comfortable with, given all the different factors and obviously, like any quarter or any year we endeavor to get on the phone with you guys the following quarter and post good results and raise those estimates if we can.

Richard Schwartz: I’ll jump in on the first question.

Mike Hickey: Yeah. Thanks, Richard.

Richard Schwartz: You had a follow-up to it?

Mike Hickey: No, go ahead.

Richard Schwartz: All right. On the first question, I read the same article you referenced and here the same speculation that you have. I can’t respond to the rumors or speculation in the press — from the press, obviously, on this call. But what I can say is that the Board and the management regularly evaluate all opportunities that we have and our goal is to always maximize shareholder value. As substantial shareholders, ourselves and the management team are fully aligned with the shareholders. What we have built to continue to build is what we believe is tremendous value to our investors. And we have a lot of assets that are valuable to us is like they’re interesting to other companies and we will continue to evaluate all opportunities as part of our shareholder obligations.

Mike Hickey: Richard, I get that, man, and you guys are definitely delivering, and it doesn’t look like you’re getting necessarily a fair shake from the market here in terms of your valuation. I guess, why wouldn’t you start a formal process on a strategic alternative including the possible sale, like why not be formal about it, I guess, Richard, is the question?

Richard Schwartz: Yeah. We just — that I can’t respond to that question in this public setting.

Mike Hickey: Okay. Thanks, guys. Good luck.

Operator: Thank you. There are no additional questions waiting at this time. So I’ll pass the conference back over to Mr. Schwartz for closing remarks.

Richard Schwartz: Thank you, again, for joining us today. I’m really proud of our team and what they are achieving. Our executive team recently visited all of our offices and team members across the globe. We left those visits feeling inspired by the quality and the commitment of our teams. They are enthusiastic, passionate and fully aligned with our goals for the company, the best is yet to come. We look forward to updating you on our progress as we share our second quarter results in a couple of months. Thank you.

Operator: That concludes today’s conference call. Thank you for your participation. I hope you have a wonderful rest of your day.

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