Rumble Inc. Q4 FY2024 earnings call

US Presidential Election

• Cemented place in online media ecosystem as top destination for live independent creator election coverage. Dan Bongino and Steven Crowder dominated election night. Chris invited to White House briefing room.

Tether Investment

• $775 million strategic investment from Tether with four core impacts: accelerated international expansion (e.g., partnership with El Salvador), aggressive expansion of Rumble Cloud customer base, becoming leading media platform in crypto community (e.g., Rumble wallet), and strengthened balance sheet to compete with Google.

Fourth Quarter Highlights

• Broke internal livestream records, first full quarter with full revenue suite online, revenue record, US and Canada MAUs up 21%. Success with performance marketing solution for direct response advertisers, especially in precious metals.

For the fourth quarter of 2024, revenue was $30.2 million compared to $20.4 million in Q4 2023, an increase of $9.8 million. MAUs were 68 million, with US and Canada MAUs jumping 21% to 52 million. ARPU was $0.39 for Q4 compared to $0.33 in Q3 2024. Cost of services for Q4 was $34.5 million, down from $39.5 million in Q4 2023. Adjusted EBITDA for Q4 2024 was $13.4 million, a 55% improvement from a loss of $30 million in Q4 2023. For the full year 2024, revenue was $95.5 million, up 18% from $81 million in 2023. Cost of services was $138.5 million, down $7.7 million from 2023. Adjusted EBITDA loss was $92.1 million, better than $115.3 million in 2023.

First Quarter 2025

• Expect revenue growth of at least 25% compared to Q1 2024.

Adjusted EBITDA

• Continue to move towards adjusted EBITDA breakeven in 2025, with Tether investment providing flexibility to accelerate initiatives.

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

A: Hi, Tom. With respect to the second part, I'm not aware of other current content creators that may take on roles. With respect to Dan Bongino, we launched Rumble lineup and rating rate feature. Dan Bongino's last show transitioned, and others like Steven Crowder and Tim Pool stepped in. Audience stuck around with better engagement.

Q: Bitcoin treasury strategy and Rumble wallet development?

A: We have a Bitcoin treasury strategy of up to $20 million, with $17.1 million invested. Rumble wallet is developed in unison with Tether, aiding international expansion and crypto community integration.

Q: Tether's strategic rationale and impact on Rumble Cloud, margins, etc.?

A: Tether helps with international expansion (e.g., El Salvador), taps into portfolio companies for Rumble Cloud, and Rumble wallet aids crypto community and monetization. Margins improved with premium, rack, and sponsorships suite.

Q: Confidence in business, post-election, Tether investment?

A: Tether investment provides confidence, positive election cycle results, direct response growth potential, and Tether's support for international expansion and taking on Google.