Rumble Inc. Q4 FY2024 earnings call

• US presidential election: Rumble was top destination for live independent creator election coverage; Dan Bongino and Steven Crowder dominated election night. The media landscape is changing, and Rumble is well-positioned. - Tether investment: $775 million investment from Tether; expected impacts include accelerated international expansion (leverage Tether's presence), aggressively expand Rumble Cloud's customer base, become leading media platform in crypto community (e.g., Rumble wallet being built with Tether), and strengthen balance sheet to compete with Google. - Fourth quarter results: Broke internal livestream records; first full quarter with full revenue suite online; revenue record in fourth quarter with 68 million MAUs; US and Canada MAUs up 21%; success with performance marketing solution for direct response advertisers, especially in precious metals. - Financials: Full year 2024 revenue $95.5M (+18% vs 2023); Q4 2024 revenue $30.2M; cost of services decreased; adjusted EBITDA for Q4 2024 was $13.4M (55% improvement vs Q4 2023); full year 2024 adjusted EBITDA loss $92.1M (-$23.2M vs 2023); ended 2024 with ~$114M in cash, cash equivalents, and marketable securities; first quarter 2025 revenue growth expected to be at least 25% vs Q1 2024.

For the full year 2024, Rumble Inc. reported revenues of $95.5 million, an increase of 18% compared to $81 million in 2023. In the fourth quarter of 2024, revenues were $30.2 million, up from $20.4 million in Q4 2023. The increase in audience monetization revenues was mainly due to higher revenue from advertising, subscription, tipping fees, licensing, and platform hosting. US and Canada MAUs jumped 21% from $43 million in the third quarter to $52 million in the fourth quarter of 2024. Revenue contribution from various segments like advertising, subscription, etc., was part of the growth story.

• First quarter 2025: Expect revenue growth of at least 25% compared to the first quarter of 2024. - 2025: Continue to move materially towards adjusted EBITDA breakeven; Tether investment provides increased flexibility to further invest in initiatives that could accelerate and expand the business sooner than originally anticipated.

Q: How should we think about the impact on monthly active users and other engagement metrics from Dan Bongino being named FBI deputy director and are there other influencers on the platform that may take roles in the administration that may negatively impact their ability to provide content on Rumble Inc.?

A: Chris Pavlovski said he's unaware of other current content creators that may take on roles. With Dan Bongino, Rumble launched the Rumble lineup and rating rate feature, saw success with lineup adjustments after Bongino's show, and Vince took over his show while Steven Crowder and Tim Pool moved to other slots.

Q: Who is gonna be kind of doing the development of the Rumble wallet? Is Tether gonna be bearing the cost of that? Are you gonna be bearing the cost of that?

A: Chris Pavlovski said Tether is helping with development, bearing their own cost, and Rumble is bearing its own cost for implementation; development is in unison with Tether teams with no material impact cost.

Q: How are you thinking about first quarter guide between engagement and monetization to get to that first quarter guide and kind of are you assuming any natural follow-up post the election?

A: Chris Pavlovski said MAUs in first quarter are stuck better than after midterm elections due to product improvement; not gonna see massive drop post US presidential election like midterm elections as product is better and growing in different segments.

Q: As a long-time follower, what gives you confidence about the business?

A: Chris Pavlovski said having Tether as a partner is a big confidence booster; great election cycle results, optimism around advertisers opening up, direct response having headroom to grow with brands, Tether's ambition for international growth and using their user base, and alignment with Tether to take on Google head-on and explore adding more products to the Rumble Inc. product line.