Rumble Inc. (NASDAQ:RUM) Q1 2025 Earnings Call Transcript
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Overview
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%.
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 other initiatives.
ARPU $0.34, a decrease from $0.39 in Q4 2024. The decrease was due to lower advertising revenue offset by higher subscription revenue.
Cost of Services $30 million, a decrease from $31.8 million in Q1 2024. The decrease is primarily due to a reduction in programming and content costs of $3 million.
General and Administrative Expenses $16.6 million, 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 the departure of an executive and a director, and a $2.3 million increase in payroll taxes associated with stock options.
Adjusted EBITDA Loss $22.7 million, a 14% improvement compared to a loss of $26.5 million in Q1 2024.
Cash Position $301.3 million in cash and cash equivalents, 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, 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 and compete with Coinbase.
Rumble Video: Rumble Video achieved 59 million MAUs with an 87% retention rate, marking significant growth compared to previous quarters.
Rumble Ads: Rumble Ads is seeing traction with partnerships including campaigns for Netflix, Crypto.com, and Chevron, indicating a positive shift in market positioning.
Rumble Cloud: Rumble Cloud announced a partnership with the Government of El Salvador and the Tampa Bay Buccaneers, indicating growth in the government and sports verticals.
Revenue Growth: Rumble reported a revenue increase of 34% year-over-year, totaling $23.7 million in Q1 2025.
Cost Management: Cost of services decreased to $30 million, reflecting a reduction in programming and content costs.
M&A Strategy: Rumble is actively evaluating strategic M&A opportunities to enhance its core products and market position.
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Risk or Challenges
Competitive Pressures: Rumble Wallet will directly compete with Coinbase, indicating a significant competitive challenge in the cryptocurrency wallet market.
Regulatory Issues: The company is in talks with major crypto exchanges for the Rumble Wallet, which may involve navigating complex regulatory environments.
Supply Chain Challenges: The development of Rumble Wallet and localization of Rumble Video for international markets may face supply chain challenges, particularly in technology and partnerships.
Economic Factors: The company anticipates that artificial headwinds from Corporate America may turn into tailwinds with the new U.S. administration, indicating potential economic uncertainties.
Financial Risks: General and administrative expenses increased significantly due to one-time payroll events, which could impact financial stability.
Investment Risks: The reliance on the Tether investment for operational flexibility poses risks if future investments do not yield expected results.
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Guidance & Outlook
Rumble Wallet Development: Rumble Wallet is in development, aiming for a Q3 2025 market 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 to enhance core products.
Advertising Partnerships: Secured partnerships with notable brands like Netflix, Crypto.com, and Chevron, indicating growth in the advertising segment.
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
Cash Position: $301.3 million in cash and cash equivalents at the end of Q1 2025.
Bitcoin Holdings: Approximately $21.3 million worth of Bitcoin held at quarter end.
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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:One of the demands we have on the creator side is to get paid in Bitcoin or a stablecoin. Rumble would be a prominent place for creators to hold and store with a non-custodial wallet.
Q:How integral do you think Bitcoin, crypto, and the wallet will be to the business in coming years?
A:I don’t believe this changes the operating business at all. I think this complements the business in its entirety.
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 are campaigns with 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, stating they are still evaluating it. Additionally, they provided vague responses about M&A opportunities without specific details.
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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
Cloud brand
Coinbase goal
Collin Locals
Corporate America
Cryptocom campaign
Government El
Locals addition
MAU potential
MAUs retention
MAUs stability
Netflix campaign
RAC AI
Rumble Tether
Tether Coinbase
Tether development
Tether transaction
Transcript afternoon
Wallet opportunity
brand advertiser
close Tether
economy Tether
investor relation
market Wallet
progress
ramp
video product
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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Where does this earnings call transcript come from?
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They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
