GuruFocus -
- Revenue: $23.7 million, a 34% increase from $17.7 million in Q1 2024.
- Audience Monetization Revenue: Increased by $4.6 million, including $3.6 million from higher subscription revenue.
- Other Initiatives Revenue: Increased by $1.4 million, including $1.1 million from advertising inventory monetization.
- ARPU: $0.34, down from $0.39 in Q4 2024.
- Cost of Services: Decreased to $30 million from $31.8 million in Q1 2024.
- General and Administrative Expenses: $16.6 million, a $7.3 million increase due to one-time payroll events.
- Adjusted EBITDA Loss: $22.7 million, a 14% improvement from a $26.5 million loss in Q1 2024.
- Cash and Cash Equivalents: $301.3 million, up from $114 million at the end of 2024.
- Bitcoin Holdings: 211 Bitcoin, valued at approximately $21.3 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Rumble Inc (NASDAQ:RUM) reported a significant revenue growth of 34% compared to the same quarter last year.
- The company achieved a major milestone with 59 million monthly active users (MAUs), marking the 13th consecutive quarter over 40 million MAUs and the seventh consecutive quarter exceeding 50 million MAUs.
- Rumble Inc (NASDAQ:RUM) successfully executed brand campaigns with notable partners such as Netflix (NASDAQ:NFLX), Crypto.com, and Chevron (NYSE:CVX), indicating growing traction in their advertising business.
- The company announced a promising partnership with the government of El Salvador for Rumble Cloud, highlighting potential growth in the government vertical.
- Rumble Inc (NASDAQ:RUM) is developing the Rumble Wallet in partnership with Tether, aiming to launch in Q3 2025, which could open new monetization opportunities in international markets.
- The company reported an adjusted EBITDA loss of $22.7 million for the first quarter of 2025, although this was a 14% improvement from the previous year.
- Average Revenue Per User (ARPU) decreased to $0.34 from $0.39 in the fourth quarter of 2024, primarily due to lower advertising revenue.
- General and administrative expenses increased by $7.3 million compared to the first quarter of 2024, largely due to one-time payroll and related events.
- The penetration of programmatic and AI-based tools in the advertising segment is expected to take time before contributing meaningfully to the business.
- Rumble Inc (NASDAQ:RUM) faces challenges in improving user retention across its portfolio of applications, despite recent progress.
A: Christopher Pavlovski, CEO, explained that the Board approved up to $20 million for Bitcoin purchases. The strategy is linked to the Rumble Wallet, which aims to facilitate transactions in the creator economy, especially in international markets. The Wallet will allow creators to receive payments in Bitcoin or stablecoins, enhancing Rumble’s offerings.
Q: Are there plans to increase the Bitcoin holdings relative to cash?
A: Christopher Pavlovski stated that while they are evaluating this, no decisions have been made beyond the current $20 million approval for Bitcoin purchases.
Q: What are the key reasons users would adopt the Rumble Wallet over competitors like Coinbase?
A: Pavlovski highlighted the demand from creators to receive payments in Bitcoin and stablecoins. The Wallet will cater to international users who prefer crypto transactions, leveraging Rumble’s trust with creators and Tether’s global user base.
Q: How does the Bitcoin and Wallet initiative fit into Rumble’s overall business strategy?
A: Pavlovski emphasized that the initiative complements Rumble’s existing business, offering creators a desirable payment method and providing a competitive edge over platforms like YouTube.
Q: Can you provide more details on the recent brand partnerships?
A: Pavlovski shared that Rumble completed a successful campaign with Netflix and is currently working with Chevron and Crypto.com. This marks a significant milestone for Rumble in attracting brand advertisers.
Q: What is Rumble’s approach to mergers and acquisitions (M&A)?
A: Pavlovski mentioned that Rumble is actively evaluating strategic opportunities for M&A, although no specific details were provided.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.