Rumble Inc. Q2 FY2025 earnings call

• Rumble is interested in pursuing an exchange offer for Northern Data, a leading AI and high-performance computing solutions provider, but it's preliminary and subject to additional work. - User metrics: 51 million MAUs, eighth consecutive quarter above 50 million. - Monetization: $25.1 million revenue, up Y/Y and Q/Q. - Partnerships: Cumulus Media partnership, agreement with an AI player, Tether advertising and Rumble Wallet launch in Q3 with MoonPay integration. - Rumble Cloud and AI: Ambitious plans with RFPs ongoing with governments and corporates.

Rumble reported revenues of $25.1 million in the second quarter of 2025, up about 12% year-over-year and sequentially. Audience monetization revenue increased by $1.7 million, and other initiatives grew by $0.9 million. ARPU increased to $0.42, up 24% sequentially. Cost of services improved 26% year-over-year to $26.5 million. Adjusted EBITDA loss was $20.5 million, an $8.2 million improvement compared to the prior year. The company ended the quarter with total liquidity of $306.4 million, including $283.8 million in cash and cash equivalents, and $22.6 million in Bitcoin Holdings.

• Management is evaluating aggressive growth, making adjusted EBITDA breakeven less of a relative priority. - No specific guidance on gross profit margins provided, but noted improvement this quarter as some large creator agreements expired.

• The potential acquisition of Northern Data is preliminary and subject to additional work, negotiation, and finalization of key terms.

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

A: Advertising is still a very high priority. RAC is seeing more publisher inventory come in and partnerships with SSPs, with potential for growth in coming quarters.

Q: Are you looking to find creators who are not monetizing on existing platforms or offer better terms?

A: Using Rumble Studio, creators will be incentivized by getting paid to promote Rumble Wallet, with plans to target both existing and new creators.

Q: Are we on track for positive gross profit in the second half and path to positive EBITDA and free cash flow?

A: With financial resources and partnerships, adjusted EBITDA breakeven is less of a priority as evaluating aggressive growth, no specific guidance on gross profit margins given.

Q: How does the evolution of MAU compare to internal expectations?

A: Impressed with MAU number in Q2, especially without Dan Bongino, showing platform stickiness.

Q: Can you give color on initiatives driving ARPU growth?

A: Growth in subscription, Rumble Premium, and mid-rolls contributing to ARPU, with a feedback loop between advertising and subscription.

Q: How big is Rumble Cloud capacity vs Northern Data?

A: Rumble Cloud is seeing interest from governments and corporates, in RFP processes, competing in large opportunities, with potential to grow in next 1-2 years.