Rumble (US:RUM)2025-11-10 21:16Financial Investment and Revenue - Rumble announced a strategic investment of $775 million from Tether, closing on February 7, 2025, with Tether purchasing 103,333,333 shares at $7.50 each[108]. - Rumble generates revenue from Audience Monetization, including advertising fees and subscription fees, as well as Other Initiatives like cloud services[110]. - Revenues decreased by $0.3 million to $24.8 million for the three months ended September 30, 2025, compared to $25.1 million in the same period of 2024, with a $4.9 million reduction in advertising revenue[144]. - Revenues increased by $8.3 million to $73.6 million for the nine months ended September 30, 2025, with a $5.8 million increase in Audience Monetization revenues[157]. User Metrics - Monthly Active Users (MAUs) averaged 47 million in Q3 2025, an 8% decrease from Q2 2025, attributed to seasonal content creation trends[136]. - The transition from Universal Analytics to Google Analytics 4 may affect the comparability of MAU metrics, with potential discrepancies noted[130]. Expenses and Costs - Cost of services decreased by $11.2 million to $25.2 million for the three months ended September 30, 2025, primarily due to a reduction in programming and content costs of $11.9 million[145]. - General and administrative expenses increased by $0.8 million to $10.5 million for the three months ended September 30, 2025, driven by a $1.2 million rise in administrative expenses[146]. - Research and development expenses decreased by $0.2 million to $4.5 million for the three months ended September 30, 2025[147]. - Sales and marketing expenses increased by $1.1 million to $5.1 million for the three months ended September 30, 2025, due to higher marketing and public relations activities[148]. - General and administrative expenses increased by $9.3 million to $38.8 million for the nine months ended September 30, 2025, driven by higher payroll and administrative expenses[159]. - Cost of services decreased by $22.2 million to $81.8 million for the nine months ended September 30, 2025, primarily due to a reduction in programming and content costs[158]. Cash and Assets - As of September 30, 2025, cash and cash equivalents balance was $269.8 million[171]. - Digital asset holdings were valued at $24.0 million, consisting of 210.82 bitcoin as of September 30, 2025[172]. - The company has cash and cash equivalents of $269.8 million as of September 30, 2025, primarily invested in money market funds, treasury bills, and term deposits[198]. Strategic Initiatives - The company expects to continue investing significantly in growth initiatives, anticipating increases in expenses across various categories[114]. - The company completed a tender offer to purchase 70 million shares of its Class A common stock for $525 million, using part of the proceeds to support growth initiatives[108]. - Rumble's business combination agreement with Northern Data was signed on November 10, 2025, indicating ongoing strategic expansion efforts[109]. Financial Performance - Adjusted EBITDA for the nine months ended September 30, 2025 was $(58.3) million, compared to $(78.7) million for the same period in 2024[181]. - Interest income increased by $0.9 million to $2.9 million for the three months ended September 30, 2025, attributed to investments in money market funds and treasury bills[152]. - Interest income increased by $1.3 million to $8.0 million in the nine months ended September 30, 2025 compared to the same period in 2024[166]. Risk and Compliance - The company is exposed to credit risk on cash, cash equivalents, and accounts receivable, with a focus on high credit standing financial institutions[197]. - The company intends to adopt new or revised accounting standards under private company adoption timelines as an emerging growth company[195]. - The company is exposed to certain market risks as part of its ongoing business operations[196]. - An immediate 10% change in interest rates would not have a material effect on the fair market value of the company's cash and cash equivalents[198]. Shareholder Information - For the three months ended September 30, 2024, one customer accounted for $3,192,053 or 13% of total revenue, and for the nine months, this customer represented $11,671,470 or 18% of total revenue[197]. - As of September 30, 2025, no single customer represented 10% or more of the company's total accounts receivable[197]. - The agreements related to the sale of shares to Tether were determined to be a single unit of account due to their interdependence[193]. - The overall arrangement to sell shares to Tether is accounted for as a derivative, measured at fair value with changes through net loss[193].