TORONTO, April 07, 2025 (GLOBE NEWSWIRE) -- Rumble Canada, (NASDAQ:RUM), the high-growth video platform and cloud services provider, has joined Rebel News Network and its founder, Ezra Levant, in suing the government of Canada, Member of Canadian Parliament Ya'ara Saks, and other officials, for conspiring to deprive them of their constitutional right to free expression. The lawsuit, filed today in the Ontario Superior Court of Justice, alleges that the defendants unsuccessfully tried to block two lawful and ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The upcoming presidential election is expected to drive traffic growth, leading to revenue increases in Q4, supported by decentralization, cloud ecosystem, and cryptocurrency initiatives for long-term value [5] - The company reported a total revenue of $95.49 million for 2024, an 18% year-over-year increase, with Q4 revenue reaching $30.2 million, a 48% increase year-over-year [8] - The company is focusing on optimizing costs, with a notable reduction in service costs and general administrative expenses, while investing in research and development for video content recommendation algorithms and advertising matching technology [8] Financial Performance and Projections - The company is projected to achieve revenues of $183.3 million, $423.2 million, and $1.1936 billion for the years 2025, 2026, and 2027 respectively, with corresponding net profits of -$33.2 million, $6.5 million, and $160.6 million [7][9] - The company’s total market capitalization is $3.5 billion, with a closing price of $8.03 as of March 25, 2025 [3] - The company’s operating loss for 2024 was $340.4 million, primarily impacted by changes in the fair value of derivative instruments [9]

Wedbush analyst Scott Devitt reiterated the Neutral rating on Rumble Inc. RUM on Tuesday, lowering the price forecast from $13 to $10.Yesterday, the company reported fourth-quarter sales of $30.20 million (+48% year over year), beating the analyst consensus estimate of $29.73 million. Average Revenue Per User for the fourth quarter was $0.39, compared to $0.33 in the third quarter, an increase of 18%.For the first quarter, the company expects at least 25% revenue growth year over year.Read Next: US Adds 50 ...

Financial Data and Key Metrics Changes - For the full year of 2024, the company reported revenues of $95.5 million, an increase of 18% compared to $81 million in 2023 [22] - In the fourth quarter of 2024, revenues reached $30.2 million, up from $20.4 million in Q4 2023, marking an increase of $9.8 million [23] - Adjusted EBITDA for Q4 2024 was $13.4 million, a 55% improvement compared to a loss of $30 million in Q4 2023 [25] - The company ended the year with approximately $114 million in cash, cash equivalents, and marketable securities, down from $132 million as of September 30, 2024 [27] Business Line Data and Key Metrics Changes - The increase in audience monetization revenues was mainly due to higher revenue from advertising, subscription, tipping fees, licensing, and platform hosting [23] - The average revenue per user (ARPU) was $0.39 for Q4, compared to $0.33 in Q3 2024, reflecting higher advertising and subscription revenue [24] - Cost of services decreased to $34.5 million for Q4 compared to $39.5 million in Q4 2023, primarily due to a reduction in programming and content costs [24] Market Data and Key Metrics Changes - Monthly Active Users (MAUs) in the US and Canada jumped 21% from 43 million in Q3 to 52 million in Q4 2024 [11] - The company was the top destination for live independent creator election coverage, indicating strong market positioning [7] Company Strategy and Development Direction - The company plans to leverage a $775 million strategic investment from Tether to accelerate international expansion and enhance its media platform [13][15] - A partnership with the government of El Salvador is expected to help build the company's presence in international markets [16] - The company aims to become the leading media platform in the crypto community, with plans to develop a Rumble wallet in collaboration with Tether [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing the potential for advertising headwinds to turn into tailwinds due to a favorable political environment [9] - The company anticipates revenue growth of at least 25% in Q1 2025 compared to Q1 2024 [28] - Management highlighted the importance of the Tether partnership in enhancing confidence and providing resources for growth [70][74] Other Important Information - The company has successfully monetized over $750 million in precious metals through its platform over the last three years [12] - The company is focused on moving towards adjusted EBITDA breakeven in 2025, with the Tether investment providing increased flexibility for business initiatives [26] Q&A Session Summary Question: Impact of Dan Bongino's new role on MAUs and engagement metrics - Management noted that they are unaware of any other content creators taking on roles that would affect their ability to provide content, and they have successfully transitioned audience engagement following Bongino's departure [33][38] Question: Strategy behind Bitcoin treasury purchases - The company has adopted a Bitcoin treasury strategy of up to $20 million, having invested around $17.1 million to align with the community and as a long-term investment [40][42] Question: Development of the Rumble wallet and Tether's strategic rationale - Tether is collaborating on the Rumble wallet, with both parties sharing development costs, aiming to facilitate international market entry and enhance advertising opportunities [46][49] Question: Engagement and monetization expectations for Q1 - Management indicated that MAUs have remained stable post-election, with improved product offerings contributing to better retention and engagement [55] Question: Attractiveness of the platform for content providers - The company has improved its product suite, which has led to better margins and increased interest from content creators, including high-profile figures [61][66] Question: Confidence in the business outlook - Management expressed confidence due to the partnership with Tether and the positive outcomes from the recent election cycle, anticipating significant growth opportunities [70][74]

Financial Data and Key Metrics Changes - For the full year of 2024, the company reported revenues of $95.5 million, an increase of 18% compared to $81 million in 2023 [22] - In Q4 2024, revenues reached $30.2 million, up from $20.4 million in Q4 2023, marking an increase of $9.8 million [23] - Adjusted EBITDA for Q4 2024 was $13.4 million, a 55% improvement compared to a loss of $30 million in Q4 2023 [25] - The company ended the year with approximately $114 million in cash, cash equivalents, and marketable securities, down from $132 million as of September 30, 2024 [27] Business Line Data and Key Metrics Changes - Audience monetization revenues increased significantly, contributing $7.9 million to the revenue growth in Q4 2024 [23] - The average revenue per user (ARPU) was $0.39 for Q4, up from $0.33 in Q3 2024, driven by higher advertising and subscription revenue [24] - Cost of services decreased to $34.5 million in Q4 2024 from $39.5 million in Q4 2023, primarily due to reduced programming and content costs [24] Market Data and Key Metrics Changes - Monthly Active Users (MAUs) in the US and Canada jumped 21% from 43 million in Q3 to 52 million in Q4 2024 [11] - The company was the top destination for live independent creator election coverage, outperforming other platforms during the election period [7] Company Strategy and Development Direction - The company plans to leverage a $775 million strategic investment from Tether to accelerate international expansion and enhance its cloud services [15][20] - A partnership with the government of El Salvador is expected to help build a presence in international markets [16] - The company aims to become the leading media platform in the crypto community, with plans to develop a Rumble wallet in collaboration with Tether [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about turning advertising headwinds into tailwinds due to a favorable political environment [9] - The company anticipates significant growth in brand advertising, which is currently at a low base [72] - The partnership with Tether is seen as a major confidence booster, providing resources to compete more aggressively with larger platforms like Google [70][75] Other Important Information - The company is focused on maintaining discipline around its cost structure while ramping up monetization efforts [26] - The cash usage in Q4 was $18 million, representing a 19% decrease compared to Q3 [28] Q&A Session Summary Question: Impact of Dan Bongino's appointment on MAUs and engagement metrics - Management noted that they have successfully transitioned content and maintained audience engagement despite the loss of Dan Bongino [34][38] Question: Strategy behind Bitcoin treasury purchases - The company has adopted a Bitcoin treasury strategy, investing around $17.1 million, aligning with the community's interests [40][42] Question: Development of the Rumble wallet and Tether's involvement - Tether is collaborating on the Rumble wallet, sharing development costs, which is expected to facilitate international market entry [46][49] Question: Engagement and monetization expectations for Q1 - Management indicated that MAUs are expected to remain stable post-election, with improved product offerings contributing to better engagement [55] Question: Attractiveness of the platform for content providers - The company has enhanced its product suite, leading to better margins and attracting more creators to the platform [61][66] Question: Confidence in the business outlook - The partnership with Tether and successful election cycle results have bolstered management's confidence in future growth [70][74]

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]

Core Insights - Rumble Inc. reported record revenues of $30.2 million for Q4 2024, marking a 48% increase year-over-year from $20.4 million in Q4 2023 [4][6] - The company achieved an average of 68 million Monthly Active Users (MAUs) in Q4 2024, with a significant 21% sequential growth in the U.S. and Canada, reaching 52 million MAUs [4][5] - Rumble secured a strategic investment of $775 million from Tether, which included $250 million in gross proceeds to strengthen its balance sheet [4][5] - The company experienced a net loss of $236.8 million in Q4 2024, primarily due to a $184.7 million loss related to the change in fair value of derivative expenses from Tether's investment [4][5] - Adjusted EBITDA improved to a loss of $13.4 million in Q4 2024, an improvement of $16.6 million compared to Q4 2023 [4][5] Financial Performance - Revenue for the full year 2024 was $95.5 million, up from $81.0 million in 2023 [37] - Average Revenue Per User (ARPU) increased to $0.39 in Q4 2024 from $0.33 in Q3 2024, reflecting higher advertising and subscription revenue [4][6] - Total expenses for Q4 2024 were $54.4 million, down from $57.6 million in Q4 2023, with notable reductions in cost of services and general administrative expenses [6][7][8] User Engagement - Rumble's MAUs have consistently remained above 40 million for twelve consecutive quarters, indicating strong user engagement [4][5] - The platform saw record-breaking metrics during the U.S. presidential election night, including advertising revenue and live stream viewership [4][5] Strategic Initiatives - The company announced a $20 million corporate treasury diversification strategy to allocate a portion of cash reserves to Bitcoin, highlighting its commitment to cryptocurrency [4][5] - Rumble entered into a cloud services agreement with the Government of El Salvador, aligning with its values of freedom and transparency [8] Future Outlook - For Q1 2025, Rumble expects revenue growth of at least 25% compared to Q1 2024, with a focus on reaching Adjusted EBITDA breakeven in 2025 [12]