Rumble Inc. Q2 FY2025 earnings call

• The company intends to acquire AI company Northern Data, though details of the potential transaction are preliminary and subject to additional work. - Second quarter had 51 million MAUs, revenue $25.1M up 12% Y/Y. - Made strides with partnerships: Cumulus Media partnership, agreement with an AI player, expanded partnership with Tether (including Rumble Wallet launching in Q3), and MoonPay partnership for Rumble Wallet. - Rumble Cloud and AI are a key focus, with ambitious plans around the cloud business.

Rumble reported revenues of $25.1 million in the second quarter, up about 12% year-over-year. This growth was driven by a $1.7 million increase in audience monetization revenues and a $0.9 million increase in other initiatives. ARPU increased to $0.42, up 24% sequentially. Cost of services improved 26% year-over-year to $26.5 million, primarily from a $10.1 million reduction in programming and content expenses.

• No specific guidance on gross profit margins provided. - Moving towards adjusted EBITDA breakeven is less of a priority as the company evaluates investing in aggressive growth.

• Potential risks related to the proposed acquisition of Northern Data, including additional work, negotiation, and finalization of key terms for the potential exchange offer.

Q: Could you give an update on RAC and whether advertising is still a priority post Northern Data announcement?

A: Advertising remains a high priority. RAC is seeing more publisher inventory and partnership activity with SSPs.

Q: How are you looking to onboard more creators and where are they coming from?

A: Through Rumble Studio, creators will be incentivized by being paid to promote Rumble Wallet, with a plan to target creators both on and off Rumble.

Q: Is there a way to size Rumble Cloud capacity vs Northern Data?

A: Rumble Cloud is seeing interest from governments and corporate entities, in RFP processes with large opportunities, and anticipates growth in the next 1-2 years.