Rumble (US:RUM)2025-03-25 20:47Financial 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]