Rumble (RUM) 14 Aug 232023 Q2 Earnings call transcript

Ladies and gentlemen, greetings, and welcome to the Rumble Second Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

It is now my pleasure to introduce your host, Shannon Devine, Investor Relations for Rumble. Please go ahead.

Thank you, operator. Chris the Chairman the CFO; with Rumble; CEO COO. today Alexandroff, Brandon and here Pavlovski, and Founder, of I’m Tyler Hughes, released our company A XXXX on our detailing website. Investor today was the of press available and section second Relations is release results quarter

company’s statements only include be begin webcast that and SEC. made in included conjunction predictions, the cautionary and will statements of other the identified in that earnings formal might estimates with forward-looking. of remind the the via company call All factors this Future our are release social the should we be available I would or media risk the on considered statements releases Before to be the in date channels. and with considered forward-looking like as updates our presentation, filings press everyone made webcast and via may information

to Pavlovski. Chairman turn will Founder, and call Rumble’s Chris over CEO, I the now

Hello, and thank you today. for joining us

of of quarter marks second one Rumble. revealing the quarters the of XXXX The in history most

slow second with conjunction Rumble’s Rumble’s estimated all-time the has in new the model high declines gains per the starting average video and partly leagues demos XX.X XXXX later due watched show offerings sports to million streaming The to our Rumble’s anticipate slow of starting now ramp start presidential news coveted MAUs of exceptional and ahead with say The XX up. half billion results as in can brand our a I helped cycle of to with expectations. to expansive portfolio working business in quarter. major consumption due product cycle cultural time top are in starts news in growing influencers to election content improvements month XXXX an and in advertisers. is the and news fatigue. and older now were content and older is growth diversified We drive the to to significant diversified. demographic an provide cycle average minutes the demos, XX to a Our with content a confidently, XX

mousetrap, the on example, sponsorship in and creator, a which all place through advertising sources monetize. important is are unique sponsorship platforms, differentiate is release these quarter creator the to sources second creator Typically, now YouTube of Rumble subscriptions X marketplace, will often for sources for creators X the marketplace. offering is of that of the alpha product and more One seamlessly. better X RAC other sources: No in programmatic creates of monetizes the advertising, platform Most sponsorships. our was how and subscriptions. a the This best and cases for fragmented. Rumble’s be monetization platform, developments creator these provides our Patreon, introduction to programmatic of the of

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signings biggest like ramps cultural sales in the Cenat’sIShowSpeed. creators. also our digital XX influencers biggest as recorded $XX manually Rumble To of amount It Let Dan of creators. A in of some our like as anticipate the that doesn’t it XXXX revenue than second sponsorship a But small important. yet. because put and quarter, million And creators is perspective, doesn’t revealing Rumble’s sports it’s is signings most earlier, we currently revenue record. Kai this include up. across of from significant it me process stated perspective meaningful in think in any it revenue the Bongino. I put fewer segment a benefit We in will include being quarter importantly, see very these the I managed in

valuable we to sight is small Think us. see to see line with untapped, in believe have our are are is how across and is and to proven impact we can business can in of we a from you X,XXXs in can and easily doing untapped onboarded segment audience, of that monetizing its have opportunities this goal of front creators and given to on the creators largely of this largest an via start rapidly. scale a of creators, than clear what X,XXXs, growth trajectory we have of it especially beginning who this take team’s kind revenue. XXXX. be RAC small with and it’s Rumble this My about significant immensely a which automate segment only We fewer what XX can signings

it’s year-over-year the articulated to on we trajectory in early highlight similar tech how experience year-over-year business much a is required variability a similar in want year-over-year believe not Rumble’s have world. our basis, scale, at on fully past, When versus XXXX. important Facebook’s Rumble’s requires. launched how as growth fully expect What’s the in revenue up continue until XXXX, quarters on basis, the basis and against RAC to to we process. to Rumble and We to a competitors in on and will is a we automation looking stack is Starting largest scaling the measure during I companies the what capital revenue our XXXX

philosophy already tech. new good most for and on way value a includes need of sacrificing spending, unlocking importantly, than a to work, with do that not raise on growth. amazing less $XXX in belief hard tech, million. to old-fashioned Rumble steadfast teams without shareholders We’ve one done take long-term shared that big tens a building We trailblazing in billions is

about this. Think

growth similar we with of years believe capital. tech a to be generating their revenue only early companies fraction what required are big in We the will

of the anticipated of products. All our this before most has introduction one come of

For of $XX Azure and cloud the full generated $XX Amazon billion; billion. year Google, in revenue. delivered billion XXXX, $XX

tech from has is done what away we space Rumble video the with in big do share What plan taking in to cloud business. the market

beta peek to Rumble’s pace curtain. little provide cloud the behind on is ahead offering me launch expectations. of Let a

clouds machines, Our will services. Cloud now at to product expect include offerings. and our as of censorship cloud been I other work a hard the Rumble disenfranchised serve storage, believe big disenfranchised teams and significant with share is will that Kubernetes, tech’s many virtual significant overdeliver tech’s object have is that as block market with among the they well share on a big pricing.

and Fortune the are We in future. in potential discussions XXX with updates already to more in provide customer a near the plan

To an sum quarter. up, had incredible Rumble

are with the of a to Our accomplished doing almost similar it we big capital. tech are revenues decades fraction tracking and what ago, X

I show RAC said most statement. previously Bowl, advertisers. finally around is offer for stand the in to before Our our one on a Super believe confident tremendous our opportunity. is be now will moves offering brand cloud with XXXX the corner. gains diversifying We of content ever are I that pace monetization am to engines compelling with and I And that than starting creators. more

Thank CFO, joining for Alexandroff. you turn With Brandon us I’ll call on to journey. incredible our that, the over this

Chris. now Q&A. level before through QX financials a for you to Thanks, call take our turning over at I’ll operator the the very high

XXXX. $XX in $XX and The and in by increase we compares to QX our an million new of other revenue. Chris mentioned, This the test quarter growth revenue in The increase As advertisers, million XXXX. revenues both consumption. quarter, advertising an Chris $X.X $X.X licensing for the revenue And of a million for second and introduction yet. advertising of solutions publishers advertising for the in primarily million was by reported as mentioned, half of including to increase was in best driven which and driven we advertising host-read started RAC, in increase creators, build

revenue platform hosting The increase licensing creator by largely in well was licensing subscription and driven as tipping, fees. contracts, other cloud and as

to of as were providers, an $XXX,XXX content Cost content costs of $X.X to million including $X service of for generated to center such as services and and costs costs and payments join paid staffing additional programming paid well of our cost Cost in promote services $XX.X million amounts and creators The and costs and expenses $XX content professional service publishers. increase all to increase to based million, incentivizing top ago. compared related costs as to on platform. other also in networking, million. data includes creators a includes of directly provider fees related third-party Our due to to related revenues costs services the service year of hosting quarter programming was costs QX to

December Moving as content incentives, monetize XX, has securities to before to XXXX. content of sports our leads, mentioned, and cash allowed of providing date, limited verticals enter million strategy quarter $XXX.X yet us our a and we with content Chris by $XXX.X those position. the to We used equivalents in in To begun full ended large including acquisition as to compared meaningfully. in not cash guaranteed been of number million earnings capabilities acquire we economic secure portion which, verticals This top minimum creators, to key place. a have including intended, to has cash have monetization cash, as content content creators marketable

the and financials during in of announced the our the the Additionally, all-stock note quarter. disclosure previously for acquisition reflect David second XX-Q CallIn transaction Sacks’

Committee inviting consider a Adams accounting Rumble change. including of This to Moss audit becoming several company’s the potential included public participate. the traded, in process and registered of Board Lastly, committee undertook Audit publicly process light to a firm firms, the LLP

a process, auditor. large the Form our new of audit release the earlier Audit on XX, associated and change Adams, U.S.-based that completion earnings firm, as also appointed we filed This today. company’s Moss Committee is Following detailed in the August X-K

prepared That remarks. concludes my

to Kohrs to analysts. this exclusive our I up evening with call call over to Matt Matt over the all p.m. interview Before streamed now operator Rumble on open turn live to be in the the from the for I Chris covering questions Time operator, invite Kohrs at channel. line join the post-earnings will I you X:XX to the an turn Eastern

[Operator Thomas question of D.A. Davidson. Forte Instructions] Our is first from

and the me, on quarter. questions Two for congrats

But Can which are you fixed content I you talk the and know variable? there. I on the of a are question. about with opening side gave side, for of which services’ cost details services apologize So lot and ones costs

Yes.

upon costs we the with element variable creators variable. we there’s the certain We each, that are creators. the that’s contingent are for more element are as well, amount but and amount And that fixed, that’s that there’s and an incentives revenue, that’s more of there to don’t pay fixed. an share that then that’s that So the which are disclose

your to upgrade then today? you where Can about I call on think, talked, last interfaces. user stand talk those initiatives And effort you the your about

it’s Tom, Chris from Rumble.

X So over last expected be to going user But weeks. doing we quarter, sharing Twitter of the which the page is an later made today, the next that and on in extensive interfaces, we’ll we’re launch on tonight. our Truth in be overhaul upgrades list yes, major the to video

like company’s And feel third to earnings pretty they go intelligence artificial call, what means. and on then much final, about I any you when it and length listen at

talk you Rumble. means can about for So what AI

This Chris. we obviously, to intelligence we’ve on very looking quarter, side at a artificial the side. quite on our start for so business, of bit the selling Yes, and to in Obviously, tech cloud the cloud side. personally been that the me -- is anxious last are community

think make creator get of the a as tools once So the of the up for to AI, see of at AI in the later process important out part that on in we as creator. I massive respect year. tools we and be that uploading can we can with terms bring a community cloud a we we’re integrations more cloud to uploading looking the as and how and to experience the the easier for Rumble roll cloud. it very opportunity And and growth running,

far may be be what as was neutral or at all could how the to extent helpful. -- AWS? philosophical So it on as you have a your to to quick just you YouTube it or you may at would with or just that moderating And help help then broader the all? it’s all be not it if any help and neutral it’s at very content? as Does AI Or advance follow-up there, going efforts or transformative do views it you

Yes.

at seeing complaints the just around of like infancy. this I AI, It’s point something touch its what So wouldn’t biases want all terms of it. that in we’re because at to moderation with with

us think on going in that’s for still this proposed at better for we the to So a respect and that & in how this using moderation. to -- I terms I to conditions AI are we’re roll -- excited step really the year last we to not terms haven’t out in point it willing of comes involve our to AI when we’re any And explore And process wouldn’t yes, with of than Ts Cs, that. time the moderation moderation community we year front that.

second you can then part And repeat of there? question the your

Sure.

be efforts you Just AI YouTube a as think neutral transformative if to neutral relates philosophically, with going run essentially to AWS? it that is the to your

Yes.

as So service processing I at that it can that the it on feel a and power for company, a -- look AI, market cloud for see help and as there’s expand way cloud, huge I requirement market we through we our the like

question next Jason The Oppenheimer. have we Helfstein is from of

Several can a questions. of at go time. kind We one

question that So you first metrics of you that that’s share sign one. other to called quarter you success other now in the on deals out in any the want announced So content fees, seen? you’ve

metrics on to content want sign anything call Just of fee. that in you

Yes.

sports, launches digital the of we’ve stages there. early very the in had the that we’re So

RiceGum. [Gideon] [Academics] launched also We

of performance platform. top seeing like incredible an been RiceGum. on streamers He’s the We’re one our with

it We’re Kai’s out last creators, shortly where ramp IShowSpeed Japan, medical for these speed, And obviously, the they’re to like really but had excited situation about that here. he’s very when excited a comes to up in month, that. been

more quarter of cultural kind to the the the all because the really XX shifted influencers. to in sports because thing digital and to -- last the of I XX demo one add these But the way of we’ve is wanted audience

audience think that I year year, XX and as that demo. end this So a into And the of go is significant into we what and the in love we we really next then XX had us. XX the as we that for can big audiences, with back a to and audience have see audiences, opportunity both new the that older bring the compound XX on cycle I those about real

up nicely And to was then obviously, pretty it see, was engagement user good quarter-to-quarter. the per

cost the of like this a as mark was in like that far the we revenues. bottom the there should kind with -- up should that, Is obviously, of that negative the However, it associated showing assume quarter margin. like as gross cost

improved there on kind kind be of margin. just that here, should from So gross of leverage

So I if I question. wanted know don’t take to that

Yes, that. answer I’ll

-- to point. in will business to going new feel content diversified. at this not is say first But and at We’re what quarter on point -- in second signing And provide we’re we a that this I where signing platform. content the very guidance were bringing aggressive any in adding the is the the that I and creators very and

to with and X continue that. -- We’re don’t see to as as going aggressive but to do be that were But I be the very we need the opportunistic in last quarters.

audience bringing really terms that. will But the the audience. year. of met and that goals we’ve see we case on in you last younger our So has signings that top that on feel next something I monetizing opportunistic see now of don’t at us diversifying a pace business really over we’re on really And the in think and when us same engagement you’re the we for in good X going we jump very saw But a to quarters. be that the will growing us, focused

the do maybe think you through as to increase how And RAC. needing scale revenue about selling you expense, that an increase then on

point how of the of on kind basically given annual per XX like manually. selling an you’re will So kind that automated basis, $X the right, be creators million these with doing creator major

should you how relative and as expense to up automate? think Just RAC scale we sales about

going will it carry multiple RAC monetize the route that way be the is way. beauty the to of to programmatic advertising Yes, is one ways

And with complete with automation want as currently -- as want to little automation to take lot that relationship route as do or much requires of managing the other very that. possible is it we going overhead in we the more The as to into terms Sponsorship sponsorship. is be a requires possible what creator. manual a

that alpha a less bettering So creator it than that have fast cost see see and as massive now released I as product a opportunity per doing I and that can. we on obviously, significantly basis. do with and RAC, scaling But the and furthering manually we do of that are

question. obviously, point. last mean, third the just we’re far then I quarter at pretty And this into

not a from give I of some -- of we’re any on on content quarter-to-date don’t So to the are just kind where we’ve a platform. of just creators political, with I bottom we MAU. here off Like think have sequential know, kind worked new sense kind of you’re a of us should at do standpoint, we obviously basis of know kind But on it you going -- of and now grow sequentially. any user a kind MAUs

going as we anticipate guidance, that any on things debate, be start Rumble to up. and the to for obviously, the What not the audience get exclusively sports will place do primary the debate, on is and the which online provide cycle, disappearing. that been we August And digital with the into presidential election we’ve have and but ramp as on I’m election first presidential influencers, streamed XXXX the say here don’t I to cycle we obviously, definitely XX. we that we -- see streaming cultural will will get that this leagues deals in saying the

So grow that build on the we to and engagement look as on there well.

and for us. Q&A session. gentlemen, you concludes Thank that Ladies today’s joining

now your may You lines. disconnect