Rumble Inc ((RUM)) has held its Q4 earnings call. Read on for the main highlights of the call.
Rumble Inc.’s recent earnings call painted a picture of robust growth and strategic foresight, despite some financial challenges. The sentiment was largely positive, driven by impressive revenue and audience metrics, alongside promising strategic partnerships. Although the company reported an increase in net loss, the improved EBITDA and partnership with Tether suggest a favorable outlook for future growth.
Record Revenue and Audience Growth
Rumble Inc. celebrated a milestone with record revenue exceeding $30 million for Q4 2024. This represents a significant 18% increase from $81 million in 2023 to $95.5 million in 2024. The company also reported a substantial rise in monthly active users (MAUs) in the US and Canada, growing by 21% from $43 million in Q3 to $52 million in Q4 2024.
Strategic Investment from Tether
A major highlight was the announcement of a $775 million investment from Tether, a leader in the digital asset industry. This strategic partnership is set to accelerate Rumble Inc.’s international expansion and strengthen its presence in the crypto community.
Improved Adjusted EBITDA
Rumble Inc. reported a significant improvement in adjusted EBITDA, reaching $13.4 million for Q4 2024. This marks a 55% improvement compared to a loss of $30 million in Q4 2023, indicating better operational efficiency and financial management.
Introduction of Rumble Wallet
In collaboration with Tether, Rumble Inc. is developing the Rumble Wallet to facilitate crypto transactions for creators. The wallet will support USDT, Tether Gold, and Bitcoin, and is expected to drive international expansion and enhance user engagement.
Positive Cash Flow Developments
The company ended 2024 with $114 million in cash, cash equivalents, and marketable securities. Rumble Inc. also achieved a 19% reduction in cash usage in Q4 compared to Q3, reflecting improved cash management strategies.
Net Loss Increase
Despite the positive developments, Rumble Inc. reported a net loss of $236.8 million for Q4 2024, a significant increase from the $29.3 million loss in Q4 2023. This was largely attributed to a $184.7 million change in the fair value of derivative expense related to the Tether investment.
Content Creator Transition Challenges
The departure of Dan Bongino, a popular content creator, poses challenges in maintaining audience engagement. However, Rumble Inc. has adjusted its lineup to compensate for this transition, aiming to retain its audience base.
Forward-Looking Guidance
Looking ahead, Rumble Inc. forecasts a 25% revenue growth for Q1 2025, driven by increased monetization and strategic partnerships, particularly with Tether. The company is poised to challenge major industry players like Google, supported by their Bitcoin treasury strategy and plans for a Rumble wallet.
In conclusion, Rumble Inc.’s earnings call highlighted a period of strong growth and strategic initiatives, despite facing some financial setbacks. The company’s positive sentiment is underpinned by record revenue, strategic investments, and improved operational metrics, setting a promising stage for future success.