Rumble Inc. Q3 FY2023 earnings call

• Launched beta release of Rumble Cloud in September ahead of schedule, with encouraging response from various markets including entertainment, e-commerce, etc.
• Rumble Studio (previously Callin) integration is in beta, expected to transform live streaming and drive creator sponsorship revenue at scale.
• Reached 58 million monthly active users, with a diverse audience including political segments (independence/no party affiliation as largest).
• Plan to scale monetization in 2024, with ad-driven monetization expected to reduce reliance on guaranteed creator payments and move towards breakeven in 2025.

Rumble reported revenues of $18 million for the third quarter of 2023, compared to $11 million in Q3 2022. The growth was primarily driven by a $2.3 million increase in advertising revenue and a $4.7 million increase in licensing and other revenue. Cost of services for the quarter were $39.8 million, up from $12.3 million in Q3 2022, due to increases in programming/content costs, hosting expenses, and other service costs.

• Anticipate increased ad-driven monetization by end of 2024 to attract and retain creators, reducing reliance on guaranteed payments.
• Expect guaranteed creator commitments to significantly decrease by end of 2024, moving towards breakeven in 2025.
• On Rumble Cloud, no specific financial guidance provided at this time, but aim to launch fully in first half of 2024.

• Uncertainty around regulatory efforts globally, particularly in relation to free speech and internet regulations.
• Potential impact of AI on content moderation and platform operations, with cautious approach to implementing AI-driven features.
• Cloud business launch and scaling may face unforeseen challenges despite positive initial response.

Q: Can you provide your current thoughts on your ability to track influencers from other platforms including Twitch?

A: We've had success attracting creators from Twitch since earlier Q2, with more compelling revenue shares compared to Twitch.

Q: Have the Republican presidential debates been needle movers as far as engagement goes?

A: The first GOP debate had over 700,000 concurrent watchers on the platform, with the GOP being the number one stream in the US at the time.

Q: U.S. MAU was up nicely quarter-to-quarter, but minutes per user were down. Any thoughts?

A: Factors include creators taking time off in summer and moving to own CDN which may record less bandwidth.

Q: Is RAC behind schedule in ad monetization?

A: RAC programmatic is on schedule to launch within app in a few weeks, with pre-rolls expected to impact revenue in 2024.

Q: What's the impact of Rumble Cloud on gross profit/EBITDA?

A: No specific guidance on cloud's impact on gross profit/EBITDA at this time.

Q: Thoughts on AI and content moderation?

A: Opted to not use AI for moderation, with focus on human oversight.

Q: Views on regulatory efforts globally?

A: Emphasizes importance of US First Amendment, with uncertainties in other jurisdictions like Canada.