Rumble Inc (RUM) Q4 2024 Earnings Call Highlights: Record Revenue and Strategic Investments ...

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Wed, Mar 26, 2025, 1:02 AM 4 min read

Full Year Revenue 2024: $95.5 million, an 18% increase from $81 million in 2023.
Q4 Revenue 2024: $30.2 million, up from $20.4 million in Q4 2023.
Q4 Audience Monetization Revenue Increase: $7.9 million.
Q4 Other Initiatives Revenue Increase: $1.9 million.
ARPU Q4 2024: $0.39, up from $0.33 in Q3 2024.
Q4 Cost of Services: $34.5 million, down from $39.5 million in Q4 2023.
Full Year Cost of Services 2024: $138.5 million, a decrease of $7.7 million.
Q4 Net Loss 2024: $236.8 million, compared to $29.3 million in Q4 2023.
Q4 Adjusted EBITDA 2024: $13.4 million, a 55% improvement from a loss of $30 million in Q4 2023.
Full Year Adjusted EBITDA Loss 2024: $92.1 million, compared to a loss of $115.3 million in 2023.
Year-End Cash Position 2024: $114 million, excluding $250 million from Tether transaction.
Q4 Cash Usage: $18 million, a 19% reduction from Q3 2024.
Q1 2025 Revenue Growth Expectation: At least 25% compared to Q1 2024.

Warning! GuruFocus has detected 2 Warning Sign with RUM.

Release Date: March 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Rumble Inc (NASDAQ:RUM) reported a record revenue of over $30 million in Q4 2024, marking another consecutive quarter of revenue growth.
The company announced a significant $775 million strategic investment from Tether, which is expected to accelerate international expansion and strengthen Rumble's balance sheet.
Rumble's audience monetization revenues increased significantly, driven by higher advertising, subscription, tipping fees, licensing, and platform hosting.
The company successfully launched a new creator program and technology features like the Rumble lineup and rate feature, enhancing user engagement and content transition.
Rumble's partnership with Tether is expected to facilitate the development of the Rumble Wallet, enabling international expansion and high-value partnerships with crypto exchanges.

Negative Points

Rumble Inc (NASDAQ:RUM) reported a net loss of $236.8 million for Q4 2024, significantly higher than the $29.3 million loss in Q4 2023, largely due to the change in fair value of derivative expense related to the Tether investment.
Despite revenue growth, the company is still working towards adjusted EBITDA breakeven, with a full-year adjusted EBITDA loss of $92.1 million in 2024.
The departure of key influencers like Dan Bongino could potentially impact user engagement and content availability on the platform.
Rumble's reliance on the political sphere for streaming dominance may pose risks if political dynamics shift or if key content creators take on roles that limit their content production.
The company's international expansion strategy, while promising, is still in its early stages and requires further proof of concept and successful execution in markets like El Salvador.

Q & A Highlights

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? Are there other influencers on your platform that may take roles in the administration that may negatively impact Rumble's content? A: Chris Pavlovski, CEO, stated that he is not aware of any other current content creators taking on roles that might impact Rumble. Regarding Dan Bongino, Rumble launched a new feature called the Rumble lineup, which allows one stream to follow another. This has been successful, with other creators like Steven Crowder and Tim Poole filling the gap left by Bongino, maintaining strong engagement metrics.

Q: Earlier this month, you announced Bitcoin treasury purchases. What's the strategy behind this? A: Chris Pavlovski explained that Rumble has adopted a Bitcoin treasury strategy, investing around $17.1 million in Bitcoin. This aligns with the company's belief in Bitcoin and the crypto community, and it positions Rumble among the top public companies holding Bitcoin. The strategy is to align with the community and see Bitcoin as a long-term investment.

Q: Who is responsible for the development of the Rumble wallet, and what are the strategic reasons behind Tether's investment? A: The development of the Rumble wallet is a joint effort between Rumble and Tether, with both bearing their own costs. Strategically, the wallet will facilitate international expansion and allow for tipping and payments in Tether and Bitcoin. Tether's investment also aims to leverage Rumble Cloud for Tether's portfolio companies, enhancing Rumble's international presence and cloud services.

Q: How are you thinking about engagement and monetization for the first quarter, especially post-election? A: Chris Pavlovski noted that Rumble has maintained strong MAUs post-election, better than after previous election cycles. The product improvements and diversification beyond politics have helped retain users, leading to a tighter range of MAUs compared to past drops after elections.

Q: What makes Rumble more attractive to content providers today, and are you able to add content with more favorable gross margins? A: Rumble's full product suite, including Rumble Premium, RAC, and sponsorships, has improved monetization and margins. The platform's dominance in independent creator streaming, especially in politics, has attracted content providers like the White House and Dr. Disrespect. Rumble is also pushing into gaming and has launched a new creator program to drive growth and engagement.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

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