8-K: Rumble Inc. Reports Strong Q3 2024 Results: MAUs Surge to 67 Million, Revenue Hits Record $25.1 Million

Rumble Inc. announced a 26% quarter-over-quarter increase in monthly active users (MAUs) to 67 million and record revenues of $25.1 million, a 39% year-over-year increase, for the third quarter of 2024.

Summary

• Rumble's revenue for the third quarter of 2024 reached $25.1 million, a 12% increase from the previous quarter and a 39% increase compared to the same quarter in 2023.
• The company's average global Monthly Active Users (MAUs) grew to 67 million in Q3 2024, up from 53 million in Q2 2024, marking the eleventh consecutive quarter above 40 million MAUs.
• Of the 67 million MAUs, 43 million were based in the U.S. and Canada.
• Average Revenue Per User (ARPU) decreased to $0.33 in Q3 2024, compared to $0.37 in Q2 2024, due to revenue growth slightly lagging strong MAU growth.
• The net loss for the quarter was $31.5 million, compared to a loss of $29.0 million in the same quarter of 2023.
• Adjusted EBITDA showed an improvement, with a loss of $23.5 million in Q3 2024, compared to a loss of $35.4 million in Q3 2023.
• Rumble's cash, cash equivalents, and marketable securities totaled approximately $132.0 million as of September 30, 2024.
• The company has seen a consistent reduction in quarterly cash usage over the last four quarters, with a 25% reduction in Q3 compared to Q2 2024.
• Rumble Cloud partnered with the Miami Dolphins and Hard Rock Stadium.
• Rumble joined a lawsuit against X and advertising agencies alleging a conspiracy to withhold advertising revenue.
• The Rumble app launched on Xbox, expanding its video distribution capabilities.
• Rumble Premium, the advertising-free subscription service, was fully launched.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with strong growth in key metrics like revenue and MAUs, coupled with improving financial discipline. While the company is still operating at a loss, the trajectory is promising, and management's optimism is evident.

Positives

• Revenue increased by 39% year-over-year to $25.1 million.
• MAUs grew significantly to 67 million, a 26% increase from the previous quarter.
• Cash usage has decreased for four consecutive quarters, indicating improved financial discipline.
• Adjusted EBITDA loss improved by $11.9 million year-over-year.
• The partnership with the Miami Dolphins and Hard Rock Stadium is a significant win for Rumble Cloud.
• The launch of the Rumble app on Xbox expands the platform's reach.
• The launch of Rumble Premium provides a new revenue stream.
• Rumble achieved record concurrent live viewers during the presidential debate.

Negatives

• The net loss for the quarter was $31.5 million, an increase from the $29.0 million loss in the same quarter of 2023.
• Average Revenue Per User (ARPU) decreased to $0.33 from $0.37 in the previous quarter.
• The company is still operating at a loss, with a negative Adjusted EBITDA of $23.5 million.

Risks

• The company's limited operating history makes it difficult to evaluate its business and prospects.
• Rumble may not continue to grow or maintain its active user base, and may not be able to achieve or maintain profitability.
• There are risks relating to the ability to attract new advertisers, or the potential loss of existing advertisers.
• Rumble Cloud may not achieve success, which could adversely affect the business.
• Negative media campaigns may impact financial performance and relationships with business partners.
• The company is subject to cybersecurity risks and interruptions in its information technology systems.
• Rumble may face liability for hosting unlawful materials uploaded by third parties.
• The company faces significant market competition.
• Rumble relies on data from third parties to calculate certain performance metrics, which may be inaccurate.
• The company depends on third-party vendors for core services.
• Incentives offered to content creators may involve fixed payment obligations that are not contingent on actual revenue.

Future Outlook

Rumble expects continued revenue growth for the remainder of 2024 and anticipates moving materially towards Adjusted EBITDA breakeven in 2025.

Management Comments

• Rumble's Chairman and CEO Chris Pavlovski stated that he has never been more optimistic about the opportunity in front of the company.
• Chris Pavlovski noted that Rumble broke records on Election Night and delivered record revenues for the third quarter.
• Chris Pavlovski stated that cancel culture is dead and free speech is now mainstream, with Rumble in the driver's seat.

Industry Context

Rumble's growth in MAUs and revenue reflects a broader trend of increasing demand for alternative video platforms and cloud services, particularly those focused on free speech and independent content creators. The lawsuit against X and advertising agencies highlights the ongoing tensions and competition in the digital advertising market.

Comparison to Industry Standards

• Rumble's MAU growth of 26% quarter-over-quarter is significant compared to more established platforms like YouTube, which typically see slower growth rates.
• The ARPU of $0.33 is relatively low compared to platforms with more mature monetization strategies, such as YouTube, which has an ARPU in the range of $1 to $3.
• Rumble's focus on independent creators and free speech positions it differently from platforms like TikTok, which have a different content focus and user base.
• The partnership with the Miami Dolphins and Hard Rock Stadium is a notable achievement for Rumble Cloud, demonstrating its ability to compete with established cloud providers like AWS and Google Cloud in specific niches.

Legal Proceedings

• Rumble joined a lawsuit against X and advertising agencies alleging a conspiracy to withhold advertising revenue.

Stakeholder Impact

• Shareholders will be encouraged by the strong revenue and user growth, as well as the improving financial discipline.
• Content creators will benefit from the platform's growth and monetization opportunities.
• Advertisers will have access to a growing user base, although ARPU is currently low.
• Employees will likely be motivated by the company's positive trajectory and growth.

Next Steps

• Rumble will continue to ramp up monetization efforts.
• The company will maintain discipline around its cost structure.
• Rumble expects to move materially towards Adjusted EBITDA breakeven in 2025.

Key Dates

Keywords

Rumble, video platform, cloud services, MAU, revenue, EBITDA, advertising, subscription, Rumble Cloud, digital media, content creators