Rumble (RUM)2025-03-25 12:55Financial 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]