Rumble (RUM) 12 Nov 242024 Q3 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to Rumble Incorporated's Third Quarter 2024 Earnings Call. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Shannon Devine, Investor Relations for Rumble. Thank you.

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

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

since been felt what Thanks, earnings a Wow, about years never that our can hosted since call. than more Shannon. became I've does weeks. I first it more And it honestly importantly, couple It's public our been real optimistic we say has and two we more never today. of opportunity. first

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space. the Turning as We cemented to creator the ourselves leader election. independent the in

watched Rumble high media a including X, a and On of day. nail took the traditional in center marks consumption, versus premium concurrent the set the creator advertising on live views, XX.X% of evening this of the stream for truth number share set the perspective, much XX.X% where viewers a live for concurrent of of independent in ratings and categories the live metrics, new XXXX This United RAC. the XX% era Rumble as in the of and as November new Rumble tracks TV for we traditional source known a the into Rumble saw number Meanwhile, election. Stream's the variety new new of dawn forefront. According of a to XX% as in was through networks live plummet peak to XX.X% Twitch. our morning hours the compares total put generated which and charts, X subscribers is November is To and States revenue election streams, coffin YouTube and at by

XXX,XXX #X reached personal App app category $XXX the time. engineers that XXX,XXX with And Video concurrent over and notched over also to worth YouTube the [ proof live all billion. be by of our for [indiscernible] was cloud mind, considering viewers. These Steven bad feat biggest of Crowder and on team and new of Cloud, incredible a at world the Additionally, estimated Rumble YouTube, of the running stream in in best belongs leagues. in keep an two over technical big individual a independent not in the Apple that high streams set Photo ] host our viewers concurrent were Rumble ahead store is amazing this the creator the

continuing and of sales encouraging customers and is. is of The have offering in we product with elections hold, how cloud cycle. enterprise just the to here conversations progress Our mission-critical stages all has the various taken large are proof

to our strong was have testing and majority scalable monthly while and saw million, of We active launched the monetization from election-related the has on sustain being and our front that core more of goal say expanding exceeded audience, our and in a expanding loyal focused which advancing audience, we our the and I of taken with to users across QX. we content XXXX we by wider business, on a audience, similar for XX example this quarterly secure focus growth nicely sooner experienced expectations. model. could the more revenues Rumble for avenues business can have reaching our been as confidently May are our predictable have year, I cultivating XXXX, certainly to back volatile Importantly, are offering is and YouTube progressing to phase. goals our Premium, mentioned And QX. anticipated. phase Turning monetization we no have overtaken increasing sequentially opportunities monetization the with this since We headwinds the this experience opened a premium than service ad a I One tailwinds of

our As load with in by September, mid-rolls growth and the very saw we're progress. strong introducing pleased we we subscribers, in premium increased ad

to the content. platform. exclusive to have now premium fourth This The special ad add economics been we With the Rumble now we opportunity of on has that are we are proved looking Netflix's to that we an subscription that creators this be content quarter Premium something no content. with model, think content by provide now offer. and are included on easy any and creator to of we exclusive YouTube's as communities election skateboarding, the to superior Stephen night, to the to experience revenue offering On Premium stepping However, the exclusive the and a is we monetization combination offer, subscription other feel creator of is a to to trap adding Street hybrid RAC strong Crowder's weeks, very have best feel and MugClub, live with recent watch. It's this Rumble in the economy. first driver the very is offering announced one now results that our continually the mouse be promising. in Crowder entire engine adding to early which League that is way and been quarter I across largest full Rumble such in lead Rumble Internet subscription gas of growth the shortly. One in premium, we'll versus the the

consecutive For growth. which I to performance be in all marked quarter of the quarter, these reasons, another of excited our about continue revenue fourth

As forward, are look can the our base in country. much We longer the we majority. brand and more half a user room now is ignore how the than advertisers elephant

[ back peeled stayed have cannot have platforms this this we've ]. Immediately Rumble to landed many in after first loyal saw disband, major which is fact, such have their the aging of audiences grown that during advertising GARM Rumble. proof its ] base. forever. have we They finally it's partnership, brand to set moderation, them. XXXX. a time, December user strict Brands [ Although on our And we not policies gone ignore And back for

our said not is of the creating an and were, in who For only conspiracy Bowl. both They Alliance more as election, for the is our heights I is advertising I may Not by from powerful platforms with are cartel ad to be new media of dismantled. won X, forever XX% started America always early have the the partnerships fact, artificial manufactured Bowl, seen standards don't over XXXX a an the new much than and we advertising corporate alongside those world. onset already only Super corporate I agencies headwind agencies to the can but brand agreement have for an with dropped America our effectively of GARM, going out this advertise cloud. GARM believe Within in now competing it. corporate not a election most Rumble and say accelerate X, among The spoke across lawsuit as which election. I media Super results Media set about and world has viewership advertisers prior The the and so-called Rumble we days in of GARM will change Responsible Global and the I created and records buying like to week changed signs choice. XXXX. business. to ] turn familiar, [ previously was

of in is course now driver's lineup The best creators people seat Our mainstream economics. best courageous of and independent free the history, change the Cancel have with dead, cannot helped rolls I proud. spoken: American the culture with employees more and speech the be is

walk to Now I'll the Alexandroff Brandon pass financials. through to

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

to quarter attributable attributable million higher increase is revenues an $X.X initiative revenues For audience million XXXX, of QX of increase million reported $XX.X compared million, revenues. to which monetization the for and other third is $X.X $X.X in million XXXX, we an $XX of of to

the quarter. compared the quarter, of $X.XX reported For third in we $X.XX ARPU second to

of user our to expect stages early the growth. in some to relative monetizing currently periods are of user we revenue particularly see during we base, lag users that in Given high

as As quarter, our to presidential United strong ARPU lagged States decrease growth ] in election. saw growth slightly a MAU lead-up third Rumble from the result, a in the revenue [

stated, the quarter-over-quarter XXXX in second the we year. As revenues in of for was beginning our have increase a sequential previously expectation quarter

for XXXX. million ] $XX.X the million quarter [ the to increase XXXX. Cost revenue we a and have due share-based quarter costs of cost services $X.X achieved offsetting to services. we of continue expect $X.X million million and for of content third remainder the of far, other $X.X is $XX.X [indiscernible] in The to compensation $X.X in and of of in compared So decrease million decreased to decrease growth an in million,

XX, and September XXXX. XXXX, minimum $XX had cash $XXX XX, million, December contractual of programming down at As our of commitment agreements content million a from

with quarters. of our XXXX $XXX marketable December compared attention trend I has cash of XXXX. four to $XXX.X marketable release, We a press the million position. equivalents improved Moving and securities to in specific would and in like your which cash the in to cash equivalents our item as to million ended cash, third each quarter the usage, cash, approximately last of XX, securities in draw

third was $XX.X second usage million, quarter, XX% lower our the compared usage cash to the For quarter.

cash We ongoing continue maintain meet needs. to to our capital sufficient

million a move breakeven quarter. towards would concludes conclude, to third for loss Before EBITDA materially quarter million that $XX.X loss That we reiterate of in expectation of To my quarter reporting our EBITDA XXXX. end, in to the was I to EBITDA $XX.X remarks. XXXX this like started third adjusted prepared to I adjusted XXXX. the Adjusted continue compared

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

sir. you, Thank

Securities. Scott We [Operator Our now question-and-answer from be conducting of first comes the will Wedbush session. question Devitt Instructions]

way kind period. just what and that beyond what's us been when something the understand formal Now financially as the this you or business of this business revenue the would a metrics usage of as exposed like the visibility ability described better you But you that don't if around waiting wondering that as Is you're and of report there kind ways team giving new quantify I revenue. guidance cognizant get advertising is of we like in forward kind And and gave media better know things to like try to more can call. a the of to quantify quarter a interesting be ways commentary in you that go end just numbers? allow in you, time, in you've your it, kind versus in understanding trajectory if ] of of with -- election into that earlier. it have the to of of happening there's that the to but traditional it, to terms attach that I type it of gaining visibility understand until [ was

the on they type how moving GARM any definitely I us a respect pushing advertising are I line already business, in. The holds and which at see Like have XXXX. that a direct terms way brands would and with of I this how we many happens faltering coming in in tailwind, foresee are. ads with we say is those one performance-based pretty the -- of brand and advertisers and start question as start to see sand as response like it fast going said, moving once major kind But I forward we was past, advertising now, into until question I brand they do And a others the away the response we the very point. up upside in it's lower do see good when going the don't how volatile tremendous don't terms direct of to now this in still on in been response where the is pretty major side. immediately is line dependent With in I and the is sand respect major any follow being can a direct to in as going partnership after going start disbanded. did

in seeing see I at coming QX, answers your direct first hope brand what with question. partnership that I'm December in our going that currently very what with well this obviously, So response, do even and I very, seeing is we're point.

from comes Jason Oppenheimer The of & next question Co. Helfstein

Group. comes the Thomas to on Moving from which next question, Maxim Forte of

and very So moving first everything impressed your on encouraging out. off, how worked and Chris, with your it's I've see mission been congratulations to in things in your direction favor.

of So the the So question. quarter, your that think asked to on I your of in some I of talked first which I is a on but your level in retain you think what I now to my up are content we're the plans call, about plans question general other engagement wanted side earlier election? high last follow that's

the what levels, engagement XXXX the we during seeing elections. what midterm to is than respect in with different saw we're much I now, So think,

was Our way try product we we've audience and kind to than product really the is stick have. in then, far a better back this superior of built to than ever it

really we're to a lot everything as up seen product of see seeing, a point offering, are haven't generally really it speaking, sticks and we view, going a users and early, obviously, in these kind until the our engage the the We stickiness the QX of QX even now, get the up premium channels of to is sense ramp engagement lot we're of really But and especially sticks. to how a seeing and still of kind play premium more that engagement as elections a add I'd real the high cohort. we seeing like and ways the retain we I that out that, this And content retain stickiness lot that only that from lot premium with It's big more in of engagement past. platform. to on in cohort their expect to increase from where of until kind of

now, much stick signs to in but as going bigger year here And as in and the than the still it's optimistic currently we very too So say way audience in and the product we've that we're an early hopeful seen well XXXX. move quarter we up until have the course to improvements, would a think I say, early that quarter after past. throughout ever I I'm all of

user Ad And maybe the where is then on your different all for Center ] the my getting about, question, platforms. second three -- I'll talked the be want total or historically Rumble to it ask guess, you've to you tools interface I [ be

to feeling been have So a second but tools them? how about you impediment the your want Do talk you where question. has where to removed, advertising my interface current have do large want want that's about talked you've user I So it? your you on, revenue you

because At I Rumble is surprised premium. Yes. in nicely in introduced bit that we mid-rolls is kind of a once on We of only -- quite -- been. we this middle the terms the I believe us saw we move mid-rolls. little point introduced premium couple kind the uptick once of made we time, it's obviously, we ago. in of mid-rolls for do. that traction we us months which feel like what of September mid-rolls, a click best really saw is everything Advertising added and the is started And ever place noticed and it Rumble We of Center in introducing in kind revenue

quite didn't the premium, terms created that see creator those kind started in on economics the boost but introduce RAC we way until in on we which we boost mid-rolls. really foresee a of we did of flywheel a only this not So to see

had racks. it premium business on sides would impact thought bigger So the for much initially a in both than of we the mid-rolls

trap brought improvement really, now, Premium how lean are most us. things we something I numbers the how shape And but excited Steve to are for to had point think we do is into really out, in ever the and for proving optimizations, the we've fruitful at it. creator going really, in because experience. Rumble is this we the Crowder be best want there's very for turning really the are this So Obviously, into have that in forward we've room with right

you the And think so the shorter. you here, if [ sales I ] this or with earlier the win And cloud for a then Can it's year, cycle question, great guess, any my talk front last cloud? Dolphins. I about had Miami on the getting same just staying

So how and should cloud forward? going we think sales the cycle about the monetization

absolutely. Yes,

So [ we Rumble did and here some do the with the and well, post for front. clients selling And dramatically the Miami of opportunity excited of ahead talks H-XXXs and there's us enterprise about And move on because Dolphins the needle that Cloud as to sticker large these started on it's in pretty now government right governments being with think think I that that or I've some any see more we like something clients meal the very we're ] that's real a deal. recently, opportunity that large would in mentioned NVIDIA we're I election AI we front. past, we're potentially the cloud

and on long, the that some moving some traction take we'll that sales So be they material able optimistic cloud here forward, front traction. to front -- on do to we're are see start cautiously these cycles all but

We've been of & rejoined by Oppenheimer Jason Helfstein Co.

thinking you help directionally? last play as out? just you formally we any kind Just but the when expect already, answered how revenue was or guide, to you similar year about expect seasonality of kind year this fourth about given if that that and sure seasonality of this with think quarter, you're better Not can don't

Yes.

expected the expect in year, think as to as said of we well. we growth the and in continue so I balance that and So do And that into earlier XXXX. quarter-after-quarter -- revenue far, we've achieved we we the year

I really add right that positive RAC on Jason, rack one now. to really, thing is we're want

full we really And on sequential with quarter mid don't will introduced in RAC as we of middle be the advertising we fact, but expect to QX Brandon do that the September, go growth In back in a side. see humming which kind rolls quarterly really get QX, into in reiterated, of QX.

Ladies the appears the for session. lines. you. Thank now of question-and-answer it and your have reached and attending end may we gentlemen, disconnect you Thank you