Rumble Inc. Q2 FY2024 earnings call

• Video platform UI/UX is becoming comparable to YouTube, with tools to monetize accelerating. ARPU introduced as a key metric, with Q2 ARPU at $0.37. MAUs at 53 million for 10th consecutive quarter over 40 million growth from Q1 2024. - GARM created an artificial headwind for advertising, with Rumble and X filing an antitrust lawsuit, and GARM suspending operations. - Sticker Mule tripled investment in Rumble Advertising, with a successful test campaign leading to expansion. - Cloud business has landed the Miami Dolphins, PublicSquare, and is in talks with the Macedonian government. - Second quarter revenues were $22.5 million, a 27% sequential increase. Cost of services decreased due to lower programming and content costs. Cash position ended Q2 2024 at $154.2 million.

For the Video segment, the second quarter ARPU was $0.37, representing a 19% growth versus $0.31 in the first quarter. MAUs were 53 million, marking the 10th consecutive quarter of MAUs over 40 million growth from Q1 2024. Revenue from audience monetization, including advertising, subscriptions, etc., contributed to the growth. For the Cloud segment, excitement is building with recent wins like the Miami Dolphins migrating to Rumble Cloud, and discussions with the Macedonian government regarding digital transformation efforts. The Cloud business has a longer sales cycle but is seeing initial success with lending customers and other partnerships.

• Expect revenues to continue increasing sequentially throughout 2024, aided by sponsorship agreements and political advertising ramping up. - Aim to move materially towards adjusted EBITDA breakeven in 2025.

• GARM created an artificial headwind for brand advertisers, negatively affecting ARPU growth. - Volatility in ARPU due to one-off or cyclical events like elections may cause quarterly fluctuations. - Uncertainty around the timing of large brands returning to advertise on Rumble due to GARM-related issues.

Q: How much of the $4.7 million sequential revenue increase was from RAC versus other initiatives?

A: RAC contributed, along with creator sponsorships, and the process of moving creator sponsorships into RAC is ongoing.

Q: On the Cloud business, who did the Dolphins displace and why they chose Rumble Cloud?

A: Not exactly clear who was displaced, but Rumble was able to partner with the Dolphins by offering infrastructure services, showing entry into mainstream Cloud.

Q: How confident are you in supporting content costs next year with revenue share instead of minimum guarantees?

A: Confident in the mousetrap built for monetizing audiences, including live streaming, RAC, and studio ads, and will only do minimum guarantees if it makes economic sense.