Rumble Inc. Q1 FY2024 earnings call

• Rumble Cloud launched with initial offerings and secured 2 key strategic partnerships, expecting meaningful results in the back half of 2024.
• Rumble Studio has over 2,000 creators, with plans to use its technology to scale host-read advertising revenue. Launched Rumble-branded 1775 Coffee with promising sales growth.
• Rumble Advertising Center began deploying pre-roll video ads across mobile apps and expanded the publisher network. Sales and marketing teams are being built for demand generation.
• MAUs for Q1 were 50 million, ninth consecutive quarter over 40 million. Expenses from creator commitments are reducing as agreements close.
• Officially through building phase, focusing on top-line growth. Filed a second antitrust lawsuit against Google for monopolization of online advertising market.

For the first quarter of 2024, Rumble reported revenues of $17.7 million compared to $17.6 million for Q1 2023. Other services and cloud revenues increased by $3.2 million, while advertising revenues decreased by $3.1 million. The increase in other services and cloud revenue is driven by subscriptions, tipping features, and cloud services, while the decrease in advertising revenue is mostly related to sponsorship revenue.

• Expect sequential revenue increase starting in Q2. Intend to introduce ARPU as a key business metric later in the year.
• Rumble Cloud expected to show meaningful results in the back half of 2024.
• Moving materially towards breakeven in 2025 as revenue engines kick in and creator commitment expenses decrease.

• Filed a second antitrust lawsuit against Google based on monopolization of the online advertising market, with potential impact on MAUs and advertising revenue if not successful.

Q: Talked about U.S. MAU drop in Q1, swing factors?

A: Major influx of MAUs from sports content in Q4, geopolitical events in Q4 impacted Q1. Q2 guidance not provided yet.

Q: Political engagement pickup?

A: Still early, little pickup in Jan with primary, anticipate back half of 2024 and convention time.

Q: Ads sold through RAC in Q1?

A: Started introducing pre-rolls in apps via RAC, seeing momentum with advertisers buying via RAC.

Q: RAC sales by end of year?

A: Hoping to have 90%+ selling through RAC within next quarters, saw sequential growth in Jan, Feb, Mar.

Q: Breakeven metric?

A: Not giving specific definition, related to cash, revenue engines kicking in, creator commitments closing, expect mid to back half of 2025.

Q: Excited about in Q2?

A: Election cycle, GOP Convention, traction with smaller creators and live streams, Rumble Studio product and ads fueling engagement.

Q: Significance of Barstool Sports partnership?

A: Brings in podcasts/shows, promotes Rumble as main platform, cloud services, advertising partnership, helps open doors with brands.

Q: Sustaining engagement post-election?

A: Improved product, more diversified content, better than competition, Rumble Studio unique, expects to stick users post-election.

Q: Thoughts on user interfaces?

A: Made huge improvements, redid dashboard and mobile apps, UI now at a point with no complaints, helps stick users