Rumble Inc. Q3 FY2024 earnings call

• Chris Pavlovski reflected on Rumble's journey since going public two years prior, emphasizing the mission to protect free speech and the company's performance during the 2024 election where it set new records in live streams, concurrent views, and revenue. - In Q3, Rumble saw strong MAU growth and has advanced from a volatile testing phase to a more scalable and predictable phase. - Rumble Premium exceeded expectations, with additions like Stephen Crowder MugClub and plans to add more exclusive content. - Rumble Cloud is in discussions with large enterprise customers, and progress is encouraging. - The introduction of mid-roll ads in September boosted both Rumble Advertising Center (RAC) and Rumble Premium.

For the third quarter of 2024, Rumble reported revenues of $25.1 million, an increase from $18 million in Q3 2023. The revenue growth of $7.1 million was attributed to $5.9 million from audience monetization and $1.2 million from other initiatives. Monthly active users (MAU) reached 67 million. Cost of services decreased to $36.4 million in Q3 2024 from $39.8 million in Q3 2023. Adjusted EBITDA loss for Q3 2024 was $23.5 million, compared to a loss of $35.4 million in Q3 2023.

• Rumble expects sequential quarter-over-quarter revenue growth to continue in 2024. - The company aims to move materially towards adjusted EBITDA breakeven in 2025. - Chris Pavlovski was positive about Q4 revenue growth, noting RAC is expected to perform well with mid-rolls in a full quarter.

• Previously, Rumble faced headwinds from the GARM advertising boycott, which created an artificial headwind for the business. However, GARM was dismantled, and brand advertisers are starting to return.

Q: Now that traditional media have been exposed with the election and this is kind of your time, as you've described it in the call, I don't know what type of visibility that you, your team in terms of like forward advertising revenue...

A: Chris Pavlovski discussed that direct response advertising is stable and brand partnerships are starting to come in, with one major partnership already secured in December 2024.

Q: First off, Chris, congratulations on how everything worked out...

A: Chris talked about product improvements leading to better engagement retention, especially with the premium offering, and that early signs are positive for retaining an audience.

Q: Earlier this year, I had a great win on the cloud front with the Miami Dolphins...

A: Chris mentioned the cloud sales cycle is long but moving forward with talks of large enterprise and government clients.

Q: Just as you're thinking about fourth quarter, given that you don't formally guide, can we expect similar or better revenue seasonality...

A: Brandon Alexandroff and Chris Pavlovski stated they expect sequential quarterly revenue growth to continue into Q4, with RAC expected to perform well with mid-rolls in a full quarter.