Rumble Inc. (RUM) Q1 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
Rumble's earnings call shows strong financial performance with a 34% revenue growth and a significant cash position increase. While there are operational cost concerns and user retention risks, the strategic partnership with Tether and international expansion plans are promising. The Q&A section revealed cautious optimism about Bitcoin and crypto integration, with positive brand partnership feedback. Despite challenges, the overall sentiment leans positive due to strong growth metrics and strategic initiatives, likely resulting in a 2% to 8% stock price increase over the next two weeks.
Key Financial Performance
Revenue $23.7 million, an increase of $6 million or 34% compared to $17.7 million in Q1 2024. The increase is attributed to $4.6 million from higher audience monetization and $1.4 million from higher other initiatives.
ARPU $0.34 for Q1 2025, down from $0.39 in Q4 2024. The decrease is due to lower advertising revenue offset by higher subscription revenue.
Cost of Services $30 million for Q1 2025, a decrease from $31.8 million in Q1 2024. The reduction is primarily due to a $3 million decrease in programming and content costs.
General and Administrative Expenses $16.6 million in Q1 2025, an increase of $7.3 million compared to Q1 2024. The increase is primarily due to a one-time $4.8 million increase in compensation costs related to an executive's departure and a $2.3 million increase in payroll taxes associated with stock options.
Adjusted EBITDA Loss $22.7 million for Q1 2025, a 14% improvement compared to a loss of $26.5 million in Q1 2024.
Cash Position $301.3 million in cash and cash equivalents at the end of Q1 2025, a significant increase from $114 million at the end of 2024 due to the Tether investment.
Bitcoin Holdings Approximately $211 Bitcoin worth about $21.3 million as of May 8, 2025, all purchased during the quarter.
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Operating Highlights
Rumble Wallet: Rumble Wallet is in development and aims to launch in Q3 2025, serving as a gateway to monetize international markets.
Rumble Video: MAUs reached 59 million with an 87% retention rate, a significant improvement from previous quarters.
Rumble Ads: Successful brand campaigns executed with Netflix, Crypto.com, and Chevron, indicating traction in advertising.
Rumble Cloud: Partnership with the Government of El Salvador announced, expanding into government verticals.
Revenue Growth: Revenue increased by 34% year-over-year, reaching $23.7 million.
Cost Management: Cost of services decreased to $30 million, primarily due to reduced programming costs.
M&A Strategy: Management is focused on evaluating strategic M&A opportunities.
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Risk or Challenges
User Retention Risks: While Rumble has seen improved user retention rates, there is still a significant amount of work needed to maintain and further improve retention across its portfolio of applications.
Advertising Business Challenges: The company anticipates that the penetration of programmatic and AI-based tools in the advertising segment will take time before it contributes meaningfully to the business.
Regulatory and Competitive Risks: The Rumble Wallet, which aims to compete with Coinbase, poses risks related to regulatory compliance and competitive pressures in the cryptocurrency market.
Operational Costs: General and administrative expenses have increased significantly due to one-time payroll events, which could impact financial stability in the short term.
Market Dependency: Rumble's growth is heavily dependent on the success of its advertising business and partnerships, which may be influenced by broader economic factors and corporate spending trends.
M&A Strategy Risks: While Rumble is focused on M&A opportunities, there are inherent risks associated with acquisitions, including integration challenges and potential financial strain.
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Guidance & Outlook
Rumble Wallet Development: Rumble Wallet is in development, aiming for a Q3 2025 launch, targeting international markets and competing with Coinbase.
Cloud Partnership with El Salvador: Announced a cloud partnership with the Government of El Salvador, aiming to refine product offerings for government verticals.
M&A Strategy: Management is focused on evaluating strategic M&A opportunities alongside core product investments.
Revenue Growth: Reported revenues of $23.7 million for Q1 2025, a 34% increase from Q1 2024.
Adjusted EBITDA: Expect to move materially towards adjusted EBITDA breakeven in 2025.
Cash Position: Ended Q1 2025 with $301.3 million in cash and cash equivalents, significantly up from $114 million at the end of 2024.
Bitcoin Holdings: Held approximately $211 Bitcoin worth about $21.3 million at quarter end.
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Shareholder Return Plan
Share Repurchase Program: None
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Key Q&A
Q:What ultimately are you trying to accomplish with the Bitcoin treasury in terms of acquiring Bitcoin in relation to traditional cash?
A:Our board approved up to $20 million of purchasing for the Bitcoin treasury. There is no further strategy outside of that that we've announced at this point.
Q:Are you thinking of Bitcoin and cash similarly in terms of being one exchange for the other?
A:We're continuing to evaluate that and we haven't really made any determinations on that quite yet.
Q:Can you walk through the go-to-market or the use case for the Rumble Wallet?
A:The demand from creators to get paid in Bitcoin or a stablecoin is significant. Rumble will be a trusted platform for creators to hold and store their crypto.
Q:How do you think about Bitcoin, crypto, and the wallet in terms of their integration into the business?
A:I don't believe this changes the operating business at all. It complements the business and drives demand from crypto customers.
Q:Can you share more details on the brand partnerships, including scope and feedback?
A:We completed one brand campaign with Netflix and received positive feedback. Currently ongoing campaigns include Chevron and Crypto.com.
Q:What kind of assets or verticals are you interested in for M&A?
A:I can't provide any more information other than what I already said. We're going to look at opportunities as they come.
Q:Review of Unclear Management Responses
A:Management avoided giving a direct answer regarding the future strategy for Bitcoin acquisition beyond the approved $20 million, and the specifics of potential M&A opportunities were not disclosed.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI tool
Advertising headwind
America tailwind
Bay Buccaneers
Buccaneers cloud
CEO Francesco
Cloud brand
Coinbase goal
Collin Locals
Cryptocom campaign
ET afternoon
Francesco Marmo
Government El
Group Results
Locals addition
MAU potential
MAUs retention
MAUs stability
RAC
Rumble Video
Tether
brand advertiser
development
exchange
investor relation
market
product user
progress
ramp
segment
video product
wallet
RUM Transcript
Rumble Inc. (RUM) Q2 2025 Earnings Call Transcript
Unknown8-11
Despite positive revenue growth and liquidity improvements, challenges such as competitive pressures in AI and cloud, regulatory risks, and reliance on partnerships temper the outlook. The Q&A highlighted management's focus on growth over short-term profitability, with no specific guidance on gross profit margins. Given the market cap, these mixed signals suggest a neutral impact on stock price.
Rumble Inc. (NASDAQ:RUM) Q1 2025 Earnings Call Transcript
Positive5-12
Rumble's earnings call reveals strong financial performance with a 34% revenue increase and improved EBITDA. The Tether investment enhances liquidity, supporting international expansion and new partnerships with Netflix and others. Despite regulatory and competitive risks, optimistic guidance and strategic initiatives in crypto and advertising sectors are promising. The market cap suggests a moderate reaction, leading to a positive stock movement of 2% to 8%.
Rumble Inc. (RUM) Q1 2025 Earnings Call Transcript
Positive5-8
Rumble's earnings call shows strong financial performance with a 34% revenue growth and a significant cash position increase. While there are operational cost concerns and user retention risks, the strategic partnership with Tether and international expansion plans are promising. The Q&A section revealed cautious optimism about Bitcoin and crypto integration, with positive brand partnership feedback. Despite challenges, the overall sentiment leans positive due to strong growth metrics and strategic initiatives, likely resulting in a 2% to 8% stock price increase over the next two weeks.
Rumble Inc. (NASDAQ:RUM) Q4 2024 Earnings Call Transcript
Unknown3-27
The earnings call reveals significant financial instability with a large net loss, despite revenue growth. While the Tether investment provides liquidity, it introduces dependency risks. Competitive pressures and regulatory issues add to uncertainties. The Q&A section highlights unclear management responses, especially on strategic matters. Considering a $1.6 billion market cap, the stock is likely to see a negative reaction, driven by financial losses, competitive challenges, and strategic uncertainties.
RUM Report
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