Slide 1: Investor Presentation August 2021
Investor Presentation August 2021
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. Forward- looking statements include, without limitation, statements regarding the estimated future financial performance, financia
Slide 3: Disclaimer (cont’d)
Disclaimer (cont’d) Use of Projections This presentation contains financial forecasts. RSI’s independent auditors have not studied, reviewed, compiled or performed any procedures with respect to the projections for the purpose of their inclusion in this presentation, and accordingly, neither of them
Slide 4: Company Highlights
Company Highlights Financial Highlights Business Highlights Grew revenue by 89% Y-o-Y to $123MM in 2Q21 with BetRivers sportsbook mobile app independently 1 Online Sportsbook and Online Casino both growing 1 rated #4 by Eilers & Krejcik out of 31 apps in the US sequentially market (July 2021) Agreed
Slide 5: The State of Play
The State of Play Markets Online Casino Online Sports Betting Retail Sports Betting Domestic: Market Market Opportunities Opportunities Arizona u u Market access partner of choice Colorado u Connecticut u u for commercial and tribal casinos Illinois u u u Indiana u u u Iowa u u Demonstrated record o
Slide 6: Proprietary Platform and Differentiation
Proprietary Platform and Differentiation RSI’s proprietary platform has allowed it to establish a market leading position via its speed to market and differentiated user experience Online Platform Quick Deposits & Withdrawals RSI provides a customer facing platform and support services required to e
Slide 7: Casino Differentiation
Casino Differentiation Frequently first to market with new content and offer one of the largest game title Breadth & Depth of Content libraries in the industry Premium Games Live Dealer, Progressive Jackpot & Exclusive Content Bonusing Engine Real-time algorithmic bonusing improves retention Communi
Slide 8: OSB Differentiation
OSB Differentiation Match Scores Betting Tips Streaming Games Single Game Parlay Stats Center Player Search Match Clock 8
Slide 9: Online Casino: Well-Rounded Demographics and Strong Economics
Online Casino: Well-Rounded Demographics and Strong Economics1 Demographics Better Monetization Well Positioned Online casino customers are split The average online sports Online casino generated more approximately equally between male and betting and casino revenue than online sports betting female
Slide 10: Returns Driven Marketing
Returns Driven Marketing Approach Examples • Local, building consumer trust through well-known brands, personalities, and businesses • Multi-channel, optimizing CAC and diversifying away from reliance on any particular medium (e.g., TV / radio, digital, SEO, social, affiliates, etc.) • Flexible, cus
Slide 11: Efficient Promotional Programs
Efficient Promotional Programs Promotional Credits as a % of Online Slot Machine Gross Revenue Pennsylvania, TTM 24.3% 18.3% Rest of Market1 Promotional Credits as a % of Online Sports Betting Gross Revenue Pennsylvania, TTM 34.2% 26.9% Rest of Market1 11 1. Source: Pennsylvania Gaming Control Board
Slide 12: RSI US LTV / CAC
Strong Player Retention On average, all U.S. RSI cohorts since Jan-17 have paid back in their 6th month1 High quality player retention drives industry leading payback period 5.4x 4.5x 4.0x Quarterly Net Revenue by Yearly Cohort ($MM) 3 $140 $120 $100 $80 $60 $40 $20 $- Year 1 Year 2 Year 3 Q1'19 Q2'
Slide 13: Industry Leading Customer Experience
Industry Leading Customer Experience Customer Testimonials 13
Slide 14: Strong US Growth
Strong US Growth RSI has consistently grown its user base while simultaneously growing revenue per user • RSI’s focus on constantly improving the quality of the Average Revenue Per Monthly Active User (“ARPMAU”) customer experience has resulted in growth in ARPMAU $377 • MAUs grew 128% in 2Q21 over
Slide 15: Strategic Social Casino Offering
Strategic Social Casino Offering • Same platform as RMG platform, offering an authentic Soon-To-Be- online casino experience Live States Regulated Markets • Social casino players are converted to RMG at very low CACs • More than 18% of casino for fun accounts signed up for a real money account in Mi
Slide 16: Financial Overview
RUSH N T E R A C T Financial Overview SSMS. 1 PEeERACTIW GE 2 RUSH Bau E HOUSE PLAYSUGARHOUSE.COM SPORTSBOOK ASIN
Slide 17: Recent Performance
Recent Performance RSI has generated record levels of revenue every quarter since 2Q191 Online sportsbook and online casino both grew sequentially compared to 1Q21 Full Year 2021 revenue guidance increased to $465MM - $495MM RSI Consolidated Revenue, 2Q19 – 2Q21 Revenue (amount in USD millions) Grow
Slide 18: Statements of Operations
Statements of Operations Three Months Ended Six Months Ended Amounts in USD $000’s June 30, June 30, 2021 2020 2021 2020 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenue $122,800 $65,038 $234,620 $100,215 Costs of revenue 84,760 49,287 164,447 71,667 Advertising and promotions 37,543 7,445 79
Slide 19: Statements of Comprehensive Loss
Statements of Comprehensive Loss Three Months Ended Six Months Ended Amounts in USD $000’s June 30, June 30, 2021 2020 2021 2020 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net loss $(13,954) $(50,590) $(14,030) $(63,533) Other comprehensive income (loss) Foreign currency translation adjustment
Slide 20: Appendix
RUSH N T E R A C T Appendix
Slide 21: Rush Street Interactive (“RSI”) Management Team
Rush Street Interactive (“RSI”) Management Team NEIL GREG RICHARD KYLE EINAR MATTIAS BLUHM CARLIN SCHWARTZ SAUERS ROOSILEHT STETZ Executive Chairman Vice-Chairman CEO CFO CIO COO Previous Experience • Co-founder of Rush • Co-founder of Rush • Co-founder of RSI • Responsible for RSI’s • Oversees RSI’
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted Operating Costs and Expenses, Adjusted Net Loss, Adjusted Net Loss Per Share and Adjusted Weighted Average Common Shares Outstanding, each of which is defined below: Adjust
Slide 23: Non-GAAP Measures: Adjusted EBITDA
Non-GAAP Measures: Adjusted EBITDA Three Months Ended Six Months Ended June 30, June 30, Amounts in USD $000’s 2021 2020 2021 2020 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net loss $(13,954) $(50,590) $(14,030) $(63,533) (+) Depreciation and amortization 914 457 1,588 916 (+) Interest expense
Slide 24: Non-GAAP Measures: Adjusted Operating Costs and Expenses
Non-GAAP Measures: Adjusted Operating Costs and Expenses Three Months Ended Six Months Ended June 30, June 30, Amounts in USD $000’s 2021 2020 2021 2020 GAAP Operating Costs and Expenses: Costs of revenue $84,760 $49,287 $164,447 $71,667 Advertising and promotions 37,543 7,445 79,759 15,915 General
Slide 25: Non-GAAP measures: Adjusted Net Loss; Adjusted Weighted Average Common Shares Outstanding; Adjusted Net Loss Per Share
Non-GAAP measures: Adjusted Net Loss; Adjusted Weighted Average Common Shares Outstanding; Adjusted Net Loss Per Share Three Months Ended Six Months Ended Amounts in USD $000’s (except for shares and per share data) June 30, 2021 June 30, 2021 Adjusted Net Loss: Net loss attributable to Rush Street
Slide 26: Capitalization
Capitalization Fully Diluted Class Type of Outstanding Equity as of June 30, 2021 A Common Stock Class V Common Stock 160,000,000 Class A Common Stock 59,177,489 Total Outstanding 219,177,489 26
Slide 27: Key Metrics and Other Information
Key Metrics and Other Information This presentation includes certain key metrics and other information, including Average Revenue Per Daily Active User, Average Revenue Per Monthly Active User, Customer Acquisition Costs, First-Time Depositor, Gross Gaming Revenue, Lifetime Value and Monthly Active