Rush Street Interactive, Inc.

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the RSI First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. Please note that this conference call is being recorded today, May 13, 2021. I will now turn the call over to Lauren Siler, Associate Vice President of Investor Relations and Development. Please go ahead, ma'am.

Thank you, operator, and good afternoon. By now, everyone should have access to our first quarter 2021 earnings release. It can be found under the heading Financials Quarterly Results in the Investors section of the RSI website at ruststreetinteractive.com. Some of our comments will be forward-looking statements within the meaning of the Federal Securities Law. Forward-looking statements are not statements of historical facts and are usually identified by the use of words such as will, expect, should, or other similar phrases, and are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. We assume no responsibility for updating any forward-looking statements. Therefore, you should exercise caution in interpreting and relying on them. We refer you to the SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition. During the call, we will discuss our non-GAAP measures, which we believe can be useful in evaluating the company's operating performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable gap measure is available in our first quarter 2021 earnings release, which is available on the investor section of the RSI website at www.rushstreetinteractive.com. Also on the call today, we have Greg Carlin, Chief Executive Officer, Richard Schwartz, President, and Kyle Sowers, Chief Financial Officer. We will first provide some opening remarks and then open the call to questions. With that, I'll turn the call over to Greg.

Thanks, Lauren, and good afternoon, everyone. Welcome to our first quarter 2021 earnings call. We are off to a great start in 2021, posting revenue of $111.8 million during the first quarter, which represents an increase of 218% year over year. We're also pleased with our quarter over quarter growth, which is underpinned by stable online casino revenue. This strong result includes sequential growth in both the markets that were live in Q4, along with a positive contribution from the combination of our recently launched markets of Michigan, Virginia, and Iowa. We are now operating in a total of 11 jurisdictions, including the four largest U.S. online casino markets and one international market, Columbia, where we offer online casino and sports betting. Adjusted EBITDA loss was $15.1 million for the quarter, and U.S. average revenue per monthly active user, ARPMO, of $302 was up 21% year over year, and monthly active users were up 166%. As we discussed on our last call, we increased marketing investment in Q1 with the continued focus on payback period, and we expect our increased marketing investments will drive meaningful revenue growth and long-term value. On the legalization front, we continue to see strong interest at the state level to legalize online gaming. During the quarter, New York, Maryland, and Arizona all passed bills legalizing sports betting. In Maryland and Arizona, there are multiple opportunities for securing market access, and we are working to be able to operate in both markets when they go live. In New York, Rush Street Interactive has operated the most successful commercial retail sportsbook in the state, and we're excited about the upcoming process for New York to select their preferred operating partners for mobile sports betting. We're also preparing to enter the market in Canada, which has made great progress legalizing sports betting and creating an open market framework for regulating online casinos. Neil and I were part of a team that developed and managed the Fallsview Casino in Niagara Falls, which is one of the most successful tourist attractions in the country. Given similarities in market characteristics and on the heels of a strong start in Michigan, where online casino was also available from day one, we are very excited about entering a market that is leading with an online casino, which plays to our strengths. While regulatory momentum in new states continues to begin with online sports betting, as expected, we continue to see strong momentum for online casino in several jurisdictions that are looking for additional revenue sources to fund expanding budgets. Online casino generates more tax revenue than sports betting in states where both are legal, and we anticipate that many states that have legalized sports betting will consider legalizing online casino as well. importantly we have the infrastructure in place to quickly capitalize on and capture the market when able turning now to our guidance as we indicated in our earnings press release we're very encouraged by our q1 results and our strong start to q2 and accordingly we're raising our 2021 revenue guidance figure to be between 440 million and 480 million an increase of 20 million at the midpoint The $460 million midpoint of range would represent an increase of 65% over our 2020 revenues of $278.5 million. RSI ended the quarter with $363 million of cash, no debt, and no outstanding warrants. The strength of our balance sheet and position in the marketplace set us up well for continued success. We look forward to executing in future quarters and years as we progress our goals of growing our existing markets, securing access to new markets, improving our technology stack and customer experience, as well as continuing to evaluate potential acquisitions and strategic partnerships. We believe we are well positioned to take advantage of the substantial market opportunity in front of us. I will now turn the call over to our president, Richard Schwartz, who will describe our operating metrics in more detail.