Rumble Inc. Earnings Call Highlights Growth and Expansion

Rumble Inc ((RUM)) has held its Q1 earnings call. Read on for the main highlights of the call.

Rumble Inc. Earnings Call Reveals Optimistic Growth Trajectory

The recent earnings call for Rumble Inc. painted an optimistic picture for the company’s future, highlighting strong user growth, increased revenue, and strategic brand partnerships. Despite facing challenges such as decreased Average Revenue Per User (ARPU) and ongoing adjusted EBITDA losses, the company showcased a significant increase in cash reserves and laid out strategic plans for international expansion, indicating a positive trajectory.

Record User Retention and Growth

Rumble Inc. reported an impressive 87% user retention rate in Q1 2025, a significant improvement from the 60% retention rate in Q1 2023. The company has maintained over 40 million Monthly Active Users (MAUs) for 13 consecutive quarters and over 50 million MAUs for 7 consecutive quarters, underscoring its consistent user growth.

Revenue and Monetization Increase

The company achieved revenues of $23.7 million for Q1 2025, marking a 34% increase compared to the same quarter last year. This growth was driven by enhanced audience monetization and other strategic initiatives, reflecting the company’s ability to capitalize on its growing user base.

Brand Partnerships and Advertising Growth

Rumble secured new brand partnerships with major companies such as Netflix, Crypto.com, and Chevron. These partnerships represent a significant advancement in Rumble’s advertising business, potentially opening new revenue streams and enhancing brand visibility.

Cloud and International Expansion

Rumble announced a cloud partnership with the Government of El Salvador and plans to launch the Rumble Wallet in Q3 2025. These initiatives are aimed at positioning the company for international market expansion and enhancing its offerings in the creator economy.

Improved Financial Flexibility

The company ended Q1 2025 with $301.3 million in cash and cash equivalents, a substantial increase attributed to the Tether investment. This improved financial flexibility provides Rumble with a solid foundation for future investments and strategic initiatives.

Decreased ARPU

Despite the positive growth metrics, Rumble experienced a decrease in ARPU to $0.34 for Q1 2025 from $0.39 in Q4 2024. This decline was primarily due to lower advertising revenue, although subscription revenue saw an increase.

Adjusted EBITDA Loss

Rumble reported an adjusted EBITDA loss of $22.7 million for Q1 2025, which, while still a loss, represents a 14% improvement compared to Q1 2024. This indicates progress in managing operational costs and improving profitability.

One-Time High G&A Expenses

General and administrative expenses increased by $7.3 million compared to Q1 2024 due to one-time payroll and related events, including the amicable departure of an executive and a director. These expenses are not expected to recur in future quarters.

Forward-Looking Guidance

Rumble Inc. provided an optimistic outlook for the future, highlighting key metrics such as achieving 59 million MAUs and a notable 87% retention rate. The company anticipates continued revenue growth, driven by audience monetization and advertising initiatives. With the upcoming launch of the Rumble Wallet and a new cloud partnership with the Government of El Salvador, Rumble is poised to enhance its international market presence and strengthen its offerings in the creator economy.

In summary, Rumble Inc.’s earnings call reflected an overall positive sentiment, with strong user growth, increased revenue, and strategic partnerships. Despite challenges like decreased ARPU and adjusted EBITDA losses, the company’s financial flexibility and strategic plans for international expansion suggest a promising future trajectory.