Rumble (RUM) 27 Mar 242023 Q4 Earnings call transcript

Greetings. Welcome to Rumble, Inc. Fourth Quarter 2023 Earnings Call. [Operator Instructions]. Please note this conference is being recorded. the to turn Relations. Devine, now will conference Shannon over Investor I you. Thank

You may begin.

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

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

XXXX, Thank I to you, our company. want Shannon. a building talk To as about year start,

product In our comedy commitments. key our entertainment, addition to on content sports, on successfully several signings we focused across diversifying library with delivering were relentlessly

recap year product extraordinary engineering for this me teams. world-class Let our and

creators. a viewing more on experience offer subscription launching platforms opportunities Local.com, premium user fully our all monetization user integrating service, the transformed robust rumble.com, completely we for while interface redesigned First, across major to

new Studio, pending beta year, an lay which product which launch that foundation monetization. live of streaming Second, we of rise gave last Rumble future acquired to for Callin is the will incredible tool, May the patent our in

the while on of the are across launched pre-rolled our the and platform, which Rumble we also mobile we apps, inventory weeks we interface by RAC have an beautiful XX to a Rumble to publicly I'm RAC. integration all excited major support user ago, publishers and Today, often for a we to say launched novel year. infrastructure our Third, deploying top video X Fourth, this, which products. Center, two ads network. top-of-the-line call of advertising completely we a live onboarding last revamped streaming a other Advertising what cloud within necessary video days, rumble.com, built laying in just and a we network began all is expanding the business with tool, one Cloud, foundation built

to of how team tirelessly has and than it Rumble video we products, essentially the Cloud, the did mini not into billion. effort. Google worked the the What has everything with puts invested to only the billion XXXX, I'm into our and around platform. desires. for this capital these took in clock at you DoubleClick Center. our to purchased which XXX fewer Google for Rumble by Advertising back perspective. And which compares billions in $X.XX This $X compares purchased Rumble Google all really compares Cloud. way, people. YouTube Google of to when also long And Google. Our services look built behind required, team to awe it the a colossal the build offerings audience we Google have but their the investment is products And build

had in of that foundation on tech protect especially and not long-term realize In existential favorable options to enjoy down, get recourse our bare did, for third-party not company platforms. was avoiding relied launch it turned our the that rumble.com The infrastructure was business, being to had violations business no the me back hit why to powers the important infrastructure but was ultimately to unfair than but when the stack, AWS, hyperscalers. provider, to so terms platform, platforms also locked who infrastructure got off gatekeeper cloud to online. full positioned since was on built in us core big Parlor and shut to Amazon Parler We Since so had own This Cloud. day X, our business, backbone the metal cloud we understand that our it's subsequently Rumble's serves This Rumble have lights. undertaking and cloud Parler of building laid expansion cloud our as well decided the case, Parler offering. the really video We've allowed of enabled scaled XXXX. this our the pricing into severe only running no It our consequences. we because more technical XXXX. us build only allowed had us and the economics do incumbent into business, the to has which rumble.com,

Rumble, size out pain opportunity also with censorship. the an privacy, and complexity to it leverage mistrust While scale acts incredible market rumble.com customer the cloud was at by building protect to related saturated data lock-in to and vendor pricing, of infrastructure presented unfair to offering own address and our points build the of a critical strategies,

a arbitrary month, the and from a launch devoted and first, new has now provider exciting the will the subjective Rumble off free lights kind not is, earlier reasoning. of and Cloud market With public Internet to cloud of for any who turn protecting the an open to option this

and capable on market quality our the top of delivering built and generation the latest speeds pricing strategy. Second, network with third, disrupting hardware

their regain market so Our vision can to control the provide is to most pricing predictable of IT spend. the businesses

market plan by and the currently market, do the after in same from going for has exact YouTube, revenues Just excess as the to we infrastructure the profits Cloud cloud big layer share Rumble tech. Rumble at taken cornered

extension, singular a highway. remain massive natural and while our and businesses. by users, We Internet, goes big un-cancelable secures and an shareholders of data of position advertisers, Rumble highway cloud protecting in ecosystem of free untouched. publishers, the way tech the on down, are partners the independence and creators, running it's When open we This subscribers,

mid-market in Qinshift, meaningfully Creative managed the strengthening X,XXX Rumble enterprise with our allowing scale our solutions services We ACP cloud expanding our on all are and with to IT, a recently to IT range To America, and complementary in with we services focus strategy solutions and offering opportunity while leader North the and using of wider companies. premier employees, approach partnerships accelerate an go-to-market infrastructure. offering space, go-to-market a announced our support and

the While compute serve better vCPUs, vCPUs, businesses. tiers we dedicated offering cost which with and small expand tiers will our with shared we will lower to include launched high-performance developers

the this moment, our of But we the enterprise at feel medium opportunity that where iterate large as market As is demands. exists. will products, customers all significant we with to

can enterprise focus we are partnerships Qinshift, revenue. company take transitioning prospects. the companies and Although the purchasing to interest decisions is with encouraged among ACP Creative Today, building IT mid-market for of aforementioned level time, by of entry and generating and these from the products the the

anticipate experiencing Now as this are sequential which full second in production, XXXX the beginning the growth weighted half monetization we that products revenue of seeing our back towards our of revenue products in particular, quarter, growth much In in by Rumble with bolstered in to the begin are strong our assets is we Way The results the products. ramp. March. month this right begins of and RAC outlook throughout the confidence

the to as MAUs. have we such fourth high-profile XX MAUs Street right be fully nature to Skateboarding, million an pushing revenue this events goals. our League able generating to which point, our sporting our this for start And date. with and revenues. it extremely offerings should trend outperformance one-off due that of of years, core we Over the held sporting events, the quarter million noted benefited due to did audience, and from continue did this are X plus core the future to $XX hit not quarter To incremental last quarter products in have well, audience positioned we to into MAUs Today, the scale first

We audience the team cash we members, million fewer ending monetize the the And this on with north of than our did in while with have in with year sheet. XXX balance keep mind, appropriate products. to $XXX

most all tech incredibly an the market updating call to continues. I amazing you and forward to ever fronts our have Brandon the most as our ante over team big the CFO, also I been. competing dedicated to motivated, team and excited progress are position We I'm look turn driven The with enviable drive Alexandroff. is revenue. With on I'll in most that,

for Thanks, Q&A. I'll turning take now fourth operator financials and over level high full year Chris. you quarter very through at the to the call our before a

full year million $XX.X to XXXX. of revenues we of XXX% when an $XX the reported of increase XXXX, million, compared in For

content licensing, and hosting million Cost tipping increase increase million, $X.X $X.X to XXXX revenue quarter in revenue programming million. in and to reflects the increase of This quarter, for $XX for compared quarter provision $XX.X The of the advertising of other to in revenue reported costs revenues For we offset an of onetime the fourth costs content mainly in of $XX services fourth due The was subscriptions, expenses million features an $X $XX.X by and million. service XXXX $XX.X increase an quarter services content. of revenue compares of by services million a other million decrease for and in of other QX XXXX. driven million. was fourth

million of increase services $XXX.X For increased million an to the of content by of and $X.X costs cost $XX.X full million. and $X.X other hosting of service costs $XXX.X expenses to million, due year, million programming in

Moving equivalents $XXX XXXX. to of securities year cash our in $XXX.X September compared cash, million position. and cash million as the marketable ended with to XX, We

our that small coming transitioning easily online processes predictable sufficient cash generation. with processes revenue With the manual sitting of therefore, scale to are creators number we on meet We assets quarter, our capital a late more monetization automated from and, ongoing needs. in to more are yield first

fourth revenues a volatility, quarter reflect and still be this as from the result, quarter. First down largely slightly will

in of the with a quarter. benefits quarterly revenues second in to expect beginning we the sequential see increase However, improved automation,

is Specifically, by this supported increase revenues in our the month RAC experience throughout March. anticipated of with

what our I to guaranteed That decrease during move remarks. commitments I my earnings and breakeven want stated we materially With and third engines in significantly quarter prepared our on set continue XXXX, call. towards Before reiterate concludes revenue XXXX online I coming XXXX. to our creator conclude, to

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

[Operator Instructions].

Our first with proceed. & question is from Oppenheimer Jason Company. Helfstein Please

questions, and I'll like ask questions, other depending in ask them are kind queue could go back I I'll there of So and if several the more.

engagement lower the So just of quarter. the of fourth some maybe -- just the about drivers talk in the drivers

related? YouTube premium that So did that your far of with just Or as like was maybe pay just weaker minutes, do content a less time. one to some do as them from I'll of most have at creators?

respect a was. this the the January, is that to hours, it auto-sync had I we Jason, back off -- an YouTube uploaded definitely disclosed Pavlovski. think cut had impact With we when in that Chris

had hours we've definitely the an the -- watched CDN. respect bandwidth consumption, in based that estimated to that in on QX, on over notice So if impact minutes consumption With been uploaded. migrating you'll our to bandwidth remember, you

estimate that fourth And migration that that's recall, impact. an if also on had in bandwidth based continued consumption. the We an and quarter, the -- you

events impact in CDN League sporting MEs specific. December such were did well So Street of extremely on quarter in fourth and to had also, strong that based off an the -- that, our Skateboarding addition the as that. really the one-off And in the

a So how some talk beat about gross mean pretty even quarter. MAU that you just gross on you amount, on then in can to of were about was you had much than able it suggest the lower little nice dynamics factors. which more minimum talk just less manage profit and it our a maybe those of the just had just given yes, content the bit quarter. mean you Brandon, would a costs you that? to content And profit focus versus guarantees would by the be like well manage I in estimate revenue, minute I

sure. Yes,

as is the there's three components main reminder So a of just of are of components. what cost services

to So the the the give first one that creator. is revenue we share

So share of we revenue to for creator. the XX% advertising, the

So one services. of cost that's of component

those largest the moment which is giving component, guaranteed component the second to contracts are we're The the that creators. at

cost And of expect those time. the is so the to decline network of third over to we hosting as which scale, costs. amount relates component we And services, smallest

have contract, ad I have the tools contracts. they the yes, as to said, continuing, So actually we renew we've of creators the earning those those we're contracts. start on we to revenue, kicking plan and will mean, minimum that that as those XX% focus don't monetization off is And to extend come guarantee start in, as because don't

go then queue. I'll in and the back And one do more

give maybe reducing you've towards in again, creator in So breakeven on talked us about and 'XX, meaningful later an 'XX. guarantees progress update

and So just we for think was better given quarter. cash than the EBITDA, burn in I was EBITDA I think the were better looking

rest for you to how you're EBITDA Just should I are willing about, guess, of positive think the And year? say those we targeting 'XX? in metrics this if

Yes. I mean as monetization turning Number to X is -- main from engine. our I move in coming reasons. breakeven And one, towards said, plan we're it's on materially we're XXXX. the

quarter in this you'll going year. start to of sequential So kicking the that's in see second starting growth

which declining through in to 'XX, allows rest So XXXX. the in. And towards breakeven 'XX kicking into those then us start revenue costs get and the of guarantee starts minimum

question Group. from next with Our Forte Tom is Maxim

team, So I'll and to James queue quarter and in I'm congrats on a well, time. one back then I three as I'll the and going go Chris at Like year. the several, get and ask and

first mission how of was as public a wondering off it was as similar it's the and had impressive how company. I see start different. So Rumble Chris, you to to very a the I question Reddit you think it's

Yes.

and very in like at been and Advertising it's building time. with Rumble, I me and ago, spend with Reddit say, is expression. has out whereas in it speech been Center R&D, Reddit and cloud the million building in of like one for would But that's freedom doing of XX it think last the lot, building I Reddit R&D several terms Rumble of I years a about long things our started think look $XXX a So way, the lot kind kind a the founders a what business has really video a was free original what and around of stick did a in changed the that's that compare platform that now to there of team decade. stands the it as of I changed over lot is But it to of terms was one common I company in of for around Rumble almost versus out been capable doing. the decades they When

to that with there, and contrast heavy I'm team and prideful of and done needed that comparison what to size amount get like there's in we've see very done about the it I So the Reddit. done we've capital

spikes second and And Great. then usage with presidential in my How year elections. the this the occur question about during your is, historically, you've platform investors to potential experienced on election? again upcoming think should that engagement for

Yes.

presidential, Obviously, product in be lot and to picture in XXXX remains going good So XXXX, a be I But saw that out of upgrades. between what a see we XXXX that to is this our needed is of a of like the lot we what that XXXX of think changes, major was shapes a lot the in XXXX. lacking. midterm different be so can seen. to updates, was a difference it's and definitely, here how It

that. and there.So capture about to We be be what year only to that that opportunity to that able really And this are be hopefully, a to keep me to I'm it is capture we now subsequent real it going not have very growth. to grow we're able but confident excites able

that's So the I think major difference.

long this years. We into really and now. product forward video looking the really product election we're year future have come to of solid taking a advantage has The a way,

Great.

in So back then queue. the and one more, I'll get

for And you as can independent update wing How Rumble? an you left it's Jr. done President your outside an on and Rumble? and on RFK provide and joining running on politics platform. So of influencers independent is using

Yes.

using he's So we cloud only but live livestreamed our RFK, customer he a his just an where his recently he not account yesterday, become he event announced also cloud. is he that where has streaming, on Rumble announced VP,

we sports very with important been partnership more mission first that's in important we content partnership in different a really with expanding that areas the closed which into in are was like this an political, of to the respect quarter, cash. was XXXX, Barstool And development. more like equity I So he a quarter not in about With Sports, is believing Rumble and than most that one what the category. Portnoy interested in that Dave in taking taking --

things. material So the And it's share side, is not of cash. the issuance on equity side mostly deal equity and some on the

We Jason now from have from follow-up Oppenheimer. a

few A more.

So maybe move see potential just engagement know, could lot or there's -- partnership while Like a in you needle. distribution second content, don't Barstool driver it's on quarter and doesn't platform. -- a just content content actually like just lot mean, Barstool, quality it's the I as a it of of we the on the I of obviously, have

Like could should bump Just you give deal? that on perspective? some we a expect distribution

Jason.

we to pushed the see over So did is on platform grew February versus with definitely viewers. respect they in more Barstool, and January what

a like that. of here them build like the kind for category what users onto that providing really do allows kind of terms speaking, on I we're politics. was And way keeps do kind of the of with guidance a platform really kind to is trying and been that strategy generally Rumble that's in can't the In specifically, -- But Sports longer. of sports

another As same see all might of area. someone it's one we the watch, kind and political you kind same side, of grow find they The there's sports. the with that creator creator within thing

might user can to Barstool find Barstool in League they kind a of find and want also or want and Podcasts know different do. can -- to they that like -- the XX kind that you bring You they're of Skateboarding -- to them want keep you PowerSlap massive sporting Street you event know

in little way, the categories the that like really although of different of needle but we we the single But in on types content in in the call all Barstool the did quarter, needle into kind sports Street a bit amount a the a that's sense, see different verticals, in the of I moving moved category. kind drifting fourth League creator well, reason why as to significant kind broaden that different of don't platform December. the of really content, -- whole, the wanted in any on see I Skateboarding So

say. happen, could but it So hard to

risk RAC, the I always on And and you've where in March, like is revenue business. given just are sounds Okay. I development, actually quarter it the driving that now product in like But mean, what's execution. mean, you ultimately that that confidence with the ramp obviously, seen there's then I numbers second is mean, seen numbers kind just your out and full in it's in RAC of you've any

of right. weren't publishers that and doing RAC different a lot of now fourth of in a inventory. more is that's lot really We're the doing bringing year. things we a quarter lot adding last Yes,

Testing have the like Report Drudge We RAC. websites

Bright have RAC. Testing We Bar

testing We countless RAC. have different publisher now

also pre-roll in. within which have inventory up You bringing and app, open inventory the is to that's Rumble, starting

one also side, kind really and see inventory And open too, growth system, a being publishers, expect, system, in in more to very So our of and March we kind we seeing showing might now. And ground we see add flip we of clear lot happening, the inventory, our continue just going strengthening CPMs right inventory. not and confidence as really in the a And both into of to advertiser through holding RAC particular, last Rumble CPM able the which on of into see bring good we the on couple we're as really we're the to there. here storm is add picture in, seeing the adding it we're -- of months. when the is we've path are on -- seeing advertisers to that perfect the like add we're seen very comes inventory a means drop-off

acquisition, We North is, River the in question XX-K. noticed was there last an And Brandon.

little there. color a Just

of components the that's Yes, basically. RAC,

that So there's acquired. building RAC. we a company us for human capital. And the foundation some technology It's and out that's

with Maxi is Our from follow-up Group. a question Tom next

Great.

your first and the Does any [indiscernible] So cloud cloud positive last computing [indiscernible] Rumble, efforts? Social implications customers. for me. your three especially enterprise one Truth was for of have computing

Tom, Chris. this is

True them puts in great think So the now. is yes, a allows platform bank and a that It grow to for [indiscernible] lot their development social. the of capital I

Rumble to need for So on they Rumble tenants come Cloud them the can one and us do level. to they now of pretty what grow major take to being one to the next do our first exciting Social largest Cloud, Truth and the have that's the -- to to that on they capital

as monetizing us a we're and So advertising as an our about development well. where publishers They're as a client they're we're them. is positive very for partner, This long-term one also very of -- first excited internally. that

Right.

you're have going Can disbelief to that stream indulge on going still sports in then popularity? is update fight you've So Netflix. well sports-related to But but live including know your that I'm lot it's this Chris, cray. Jake its the you've a on sports talked Mike thing The think to just me. one, in there, content. content, and an about I the done Tyson provide in past I whole said, content, you real Paul

Yes.

incredibly Street other typically, event. where the all in and we exclusive. we're League [indiscernible] the many seeing on had not What the we And Skateboarding Super fourth but for front sporting, needle any an Skateboarding in That very successful even move in is from event December QX Barkley needle [indiscernible] speed trajectory well. and we we're had the last latest The with they that as like also December. of of up. didn't show to Charles way, I saw Nitro Travis Scott us kind many, surprised move that a Bowl to PowerSlap have PowerSlap have we PowerSlap us quarter we definitely see and was weekend, show people then in also we from with that's a -- good seeing Street on that the event their League kind So

the had new that levels. we to come to of push event, a really lot So event influencers

seeing some trajectory also in nice PowerSlap. we're So

obviously is good well and most Barstool point then terms of and that the quite in sports So with this Rumble on, it's the had. especially Sports events doing at trajectory, attaching recent category has some

All right. Great.

last for one So me.

So being U.S. Canada. wondering if Rumble, thoughts laws benefit an including any, what had if I if has app antitrust lower considered stores? TikTok its on updated from half And one rate lastly, defer banned was would regulation, in impact, for take in to the you its store? Apple

start absolutely. with rate, I'll the take

partner tipping that forward being For within and to Google that consortium in would companies very be We interested antitrust I believe helpful letter goes with a rants and respect technology the in With have to out any conversation. publicly. app, in TikTok. TikTok, We're a of that put lower have like Meta part there. do that that concerns. percentage obviously with be we would very want

and video experience be can't platform only even of managing that and and and a video, recommendation to working experience in Rumble. comes for the the they in the experience has my it part that, video that in is So the in engines opinion, mind company algorithms there the one out on

And concerned, decided feel there a something third you're antitrust consortium of Canada. I to with if be we in TikTok So opportunity nothing the correctly, but remember on if we'd divestiture, part We're there's of obviously, terms thing, yet. love like happens in mentioning that.

our session. That is end the of question-and-answer

conference. for your We will Thank conclude participation. you today's

You may now disconnect.