Rumble Inc. Q2 FY2024 earnings call

• The Rumble Video platform's user interface and experience are becoming comparable to YouTube, with tools to monetize accelerating. ARPU was $0.37 in Q2, up 19% from Q1. - Filed an antitrust lawsuit with X against GARM for creating an advertising cartel. The World Federation of Advertisers suspended GARM's operations. - Cloud business has seen progress with partnerships like the Miami Dolphins and interest from governments like Macedonia. - Disaggregated revenue into audience monetization and other initiatives starting from Q2, with ARPU calculated as audience monetization revenue divided by MAUs.

For the Video segment, in the second quarter of 2024, revenue grew sequentially. ARPU was $0.37 in Q2, up 19% from $0.31 in Q1, with 53 million MAUs, representing the 10th consecutive quarter of MAUs over 40 million. For the Cloud segment, notable deals include partnering with the Miami Dolphins and discussions with the Macedonian government. Revenue from the Cloud is part of other initiatives, while audience monetization (including advertising, subscriptions, etc.) contributes to ARPU.

• Expect revenues to continue increasing sequentially throughout 2024 due to sponsorship agreements and political advertising ramping up. - Continue to move materially towards adjusted EBITDA breakeven in 2025. - Aim to sell cloud availability as fast as possible to bring in revenue.

• Headwinds from GARM affecting brand advertisers, which can negatively impact ARPU growth. - Uncertainty regarding the timing of large brands returning to advertise on the platform due to GARM-related issues.

Q: How much of the $4.7 million sequential revenue increase was from RAC versus other initiatives?

A: Chris Pavlovski said it's a tide of multiple things with RAC and creator sponsorships contributing, with creator sponsorships being moved into RAC.

Q: On the Cloud business, who did the Dolphins deal displace and why they chose Rumble Cloud?

A: Chris Pavlovski said they captured a part of the Dolphins' business, aiming to get into the door and showing mainstream adoption on the Cloud side.

Q: On the core advertising business, how is content diversification and advertiser base diversification thought about?

A: Chris Pavlovski said they've diversified content, especially in sports, and are hopeful brands will return as GARM is dismantled.

Q: Confidence in supporting content costs next year with revenue share vs minimum guarantees?

A: Chris Pavlovski said they think they've built a good mousetrap for monetizing audiences going into next year, only doing minimum guarantees if it makes economic sense.