Rumble (RUM) Q4 2024 Earnings Call March 25, 2025 04:47 PM ET Company Participants Shannon Devine - Investor RelationsChris Pavlovski - Founder & CEOBrandon Alexandroff - Chief Financial OfficerJason Helfstein - MD & Head - Internet Conference Call Participants Tom Forte - Managing Director & Senior Consumer Internet Analyst Operator Good morning, ladies and gentlemen, and welcome to Rumble Incorporated's Fourth Quarter and Full Year twenty twenty four Earnings Call. All participants are in a listen only mo ...

Rumble Inc. (NASDAQ:RUM) Q4 2024 Earnings Conference Call March 25, 2025 11:00 AM ET Company Participants Shannon Devine - IR Chris Pavlovski - Founder, Chairman and CEO Brandon Alexandroff - CFO Conference Call Participants Thomas Forte - Maxim Group Jason Helfstein - Oppenheimer & Company Operator Good morning, ladies and gentlemen, and welcome to Rumble Inc. Fourth Quarter and Full Year 2024 Earnings Call. All participants are in a listen-only mode. A question and answer session will follow the formal pr ...

Rumble Inc. (RUM) came out with a quarterly loss of $0.44 per share versus the Zacks Consensus Estimate of a loss of $0.13. This compares to loss of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -238.46%. A quarter ago, it was expected that this company would post a loss of $0.13 per share when it actually produced a loss of $0.15, delivering a surprise of -15.38%.Over the last four quarters, the company has surpassed ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

User Growth and Revenue - Rumble's user base has grown from 21 million MAUs in Q4 2020 to 68 million MAUs in Q4 2024, representing a growth of over 223%[18] - Average Revenue Per User (ARPU) increased from $0.28 in Q4 2023 to $0.39 in Q4 2024, a rise of approximately 39.3%[18] Financial Highlights - The business combination with CF VI provided Rumble with gross proceeds of approximately $400 million, before transaction expenses[18] - Tether's strategic investment of $775 million included the purchase of 103,333,333 shares at $7.50 per share, with $250 million allocated for growth initiatives[20] - As of December 31, 2024, cash, cash equivalents, and marketable securities totaled $114.0 million, with investments in low-risk instruments[304] - For the years ended December 31, 2024 and 2023, one customer accounted for $14.9 million (16%) and $37.0 million (46%) of total revenue, respectively[303] - As of December 31, 2023, one customer represented 35% of accounts receivable, highlighting credit risk exposure[303] Product and Service Development - Rumble Cloud launched in early 2024, offering a subscription model with a flexible Resource Tier pricing model for predictable costs[36][39] - Rumble's advertising platform, Rumble Advertising Center (RAC), facilitates various advertising opportunities, including display and video ads, and creator sponsorships[28][33] - Rumble Video provides a platform for creators to benefit from a growing advertising business and revenue share model[25][30] - The acquisition of Locals in October 2021 added approximately 86,000 subscribers to the platform, enhancing the subscription revenue model[52] - In May 2023, the acquisition of Callin laid the foundation for Rumble Studio, which is set to launch in Q1 2024[53] - The acquisition of North River Project Inc. in October 2023 introduced the RAC advertising technology solution, marking a significant milestone in Rumble's monetization efforts[54] Strategic Initiatives - The company aims to build its brand through selective content creator partnerships and increased marketing spend, particularly in digital channels[31][32] - Rumble Cloud addresses customer pain points in the cloud market, including censorship and unpredictable pricing, positioning itself as a competitive alternative[37][43] Intellectual Property and Content Policies - The company relies on a combination of agreements and legal protections to safeguard its intellectual property rights[51] - The proprietary technology powering the platforms is a key asset for the company[50] - The company intends to continue filing applications to protect its intellectual property rights[51] - The content policies ensure a safe exchange of views on the platform, prohibiting various forms of harmful content[55] Workforce and Talent Management - As of December 31, 2024, Rumble had 135 full-time employees, with a focus on recruiting and retaining talent to support growth[44]

Financial Performance - Revenue for Q4 2024 was $30.2 million, an increase of 48% compared to $20.4 million in Q4 2023[4] - Net loss for Q4 2024 was $236.8 million, compared to a loss of $29.3 million in Q4 2023, primarily due to a $184.7 million loss in derivative expense related to Tether's investment[4] - Adjusted EBITDA loss improved by $16.6 million to $13.4 million in Q4 2024 compared to Q4 2023[4] - Revenues for the three months ended December 31, 2024, increased to $30,228,287, compared to $20,391,872 for the same period in 2023, representing a growth of 48.5%[31] - Total expenses for the year ended December 31, 2024, were $226,341,761, up from $216,510,463 in 2023, reflecting an increase of 4%[31] - The net loss for the year ended December 31, 2024, was $(338,362,779), compared to a net loss of $(116,420,462) in 2023, indicating a significant increase in losses[36] - The company reported a loss per share of $(1.66) for the year ended December 31, 2024, compared to $(0.58) in 2023[31] - Adjusted EBITDA for the year ended December 31, 2024, was $(92,069,864), an improvement from $(115,332,549) in 2023[39] - The company incurred share-based compensation expenses totaling $23,814,763 for the year ended December 31, 2024, compared to $16,134,714 in 2023, an increase of 47.5%[39] User Metrics - Average Monthly Active Users (MAUs) reached 68 million, with 52 million from the U.S. and Canada, representing a 21% sequential growth[4] - Average Revenue Per User (ARPU) increased by 18% to $0.39 in Q4 2024 from $0.33 in Q3 2024[4] - Average Revenue Per User (ARPU) is calculated quarterly as Audience Monetization revenue divided by MAUs, excluding Other Initiatives revenue[22] Strategic Investments and Initiatives - Rumble received a strategic investment of $775 million from Tether, including $250 million in gross proceeds to strengthen its balance sheet[4][6] - Rumble's Board approved a $20 million strategy to diversify corporate treasury into Bitcoin, reflecting its belief in cryptocurrency[6] - The company announced a cloud services agreement with the Government of El Salvador, indicating market expansion efforts[6] Financial Position - Rumble's cash, cash equivalents, and marketable securities totaled approximately $114 million as of December 31, 2024[4] - Cash and cash equivalents decreased to $114,018,900 as of December 31, 2024, down from $218,338,658 in 2023, a decline of 47.8%[33] - The accounts receivable increased to $9,778,941 as of December 31, 2024, from $5,440,447 in 2023, representing an increase of 80.5%[33] Risks and Challenges - Forward-looking statements indicate potential risks including competition, user growth sustainability, and the impact of economic factors on advertising revenue[26] - Rumble's cloud services business operates in a highly regulated environment, which may affect its financial performance and operational capabilities[27] - The company has identified a material weakness in internal control over financial reporting as of December 31, 2024, which could impact the accuracy of financial reporting[27] - The company is exposed to risks associated with its recently implemented Bitcoin treasury strategy, which may affect its financial condition[26] - Rumble's reliance on third-party data for performance metrics may lead to reputational risks if inaccuracies are perceived[27] Infrastructure and Operational Focus - Rumble is focused on creating an independent infrastructure for a high-growth video platform and cloud services, aiming to restore the internet to its roots[23] - The company uses Adjusted EBITDA as a non-GAAP financial measure to evaluate core operating performance, which excludes various expenses such as interest, taxes, and share-based compensation[24] Transition and Methodology Changes - As of July 1, 2023, the transition from Universal Analytics (UA) to Google Analytics 4 (GA4) has occurred, impacting the calculation of Monthly Active Users (MAUs) and making comparisons between the two methodologies challenging[21]

~ Record Revenues of $30.2 Million, Up 48% Year-over-Year ~ ~ MAUs of 68 Million, Including 21% Sequential Growth in the U.S. and Canada to 52 Million ~ ~ Received $775 Million Strategic Investment from Tether ~ ~ Fifth Consecutive Quarter of Reduced Cash Usage, 19% Less Than Prior Quarter ~ LONGBOAT KEY, Fla., March 25, 2025 (GLOBE NEWSWIRE) -- Rumble Inc. (Nasdaq: RUM) (“Rumble” or the “Company”), the video-sharing platform and cloud services provider, today announced financial results for the fiscal fou ...

Core Viewpoint - Rumble is emerging as a competitor to YouTube in the video-sharing space, aiming to capture a portion of the market dominated by YouTube, which currently delivers over 1 billion hours of video daily and generates approximately $36 billion in annual ad revenue [3][4]. Company Overview - Rumble is a video-sharing platform that allows users to upload a variety of content, with a focus on news and opinion pieces, and has gained popularity among certain demographics due to its stance against "cancel culture" [5]. - The platform reported 67 million unique monthly users and approximately $25 million in revenue during the third quarter of the previous year, showing significant growth from 58 million users and $18 million in revenue year-over-year [5]. Competitive Landscape - YouTube's dominance in the user-generated video market presents a significant challenge for Rumble, which does not need to completely dethrone YouTube but must capture some of its market share to succeed [6][10]. - Rumble is focusing on specialization and curation to differentiate itself from YouTube, which has a vast and often uncurated content library, making it difficult for users to find specific content [7]. Growth Potential - Rumble is working on enhancing its advertising platform and creator economics, with CEO Chris Pavlovski noting improvements in their advertising center and the introduction of mid-roll ads that have positively impacted revenue [8][9]. - Analysts project a top-line growth of 21% for Rumble this year, an acceleration from the previous year's growth rate of approximately 17% [9]. Sociocultural Context - There is a sociocultural movement that may favor platforms like Rumble, which claim to be immune to cancel culture, potentially increasing its user base and advertiser interest [10]. Investment Outlook - While Rumble has the potential to become a successful competitor in the video-sharing market, the likelihood of it achieving significant success remains uncertain, and investors are advised to monitor its progress before making substantial investments [12].

Core Insights - Rumble has launched Rumble Live, a linear livestreaming service that offers a full day of creator content, allowing viewers to access news, commentary, and entertainment without switching platforms [1][2] - The platform utilizes Rumble Raiding technology to create a seamless viewing experience, where shows follow one another, enhancing audience engagement [1] - Notable creators, including Steven Crowder, will stop livestreaming on YouTube and exclusively stream on Rumble starting March 24, indicating a shift in content distribution [2][4] Company Overview - Rumble is a high-growth video platform and cloud services provider founded in 2013 by Chris Pavlovski, aiming to create an independent infrastructure resistant to censorship by major tech companies [6] - The company's mission is to restore the internet to its foundational principles of being free and open [6] Programming Details - The daytime lineup for Rumble Live includes popular creators such as Evita Duffy-Alfonso, Vince Coglianese, Steven Crowder, Tim Pool, Russell Brand, The Quartering, and Viva Frei, with specific time slots assigned [3][4] - The programming is designed to build audience crossover among creators, benefiting overall traffic on the platform [4]

Core Viewpoint - Rumble Inc. is set to release its financial results for the fiscal quarter and full year ended December 31, 2024, on March 25, 2025, and will host a conference call to discuss these results [1] Financial Results Announcement - Rumble will announce its financial results before market open on March 25, 2025 [1] - A conference call will take place on the same day at 11:00 a.m. Eastern Time [1][2] Post-Earnings Call Interview - Following the earnings call, Chris Pavlovski will be interviewed by Matt Kohrs, streamed live on the Matt Kohrs Rumble channel [3] - Viewers will have the opportunity to submit questions during the live stream [3] Upcoming Investor Conference - Rumble management will attend the 37th Annual ROTH Conference from March 16-18, 2025 [4] - A fireside chat is scheduled for March 17 at 1:00 p.m. PT, which will be available on Rumble's Investor Relations website [4] Company Overview - Rumble is a high-growth video platform and cloud services provider focused on creating an independent infrastructure [5] - The company's mission is to restore the internet to its roots by making it free and open again [5]