Rumble Reports 27% Revenue Growth in Q2 2024

Rumble (ticker: RMBL) has announced a substantial 27% revenue increase for the second quarter of 2024, totaling $22.5 million. The company also introduced the average revenue per user (ARPU) metric, which reached $0.37, reflecting a 19% increase from the previous quarter.

Despite encountering difficulties due to advertising boycotts and the operations of the Global Alliance for Responsible Media (GARM), Rumble’s growth in revenue was mainly driven by direct response advertisers. The company reported a solid cash position, with $154.2 million available in cash, cash equivalents, and marketable securities. Rumble has set a target to achieve adjusted EBITDA breakeven by 2025 and is exploring various monetization strategies to cover content costs.

### Key Highlights
– Rumble’s Q2 2024 revenues rose by 27% to $22.5 million.
– ARPU increased by 19% to $0.37 in the second quarter.
– GARM’s influence was mitigated by a suspension of operations following an antitrust lawsuit.
– Revenue growth derived from direct response advertisers, while brand advertising faced challenges.
– User engagement increased notably during the election cycle, with the Miami Dolphins NFL franchise migrating to Rumble Cloud.
– Rumble’s cash reserves were reported at $154.2 million, with reduced minimum cash commitments for content.
– The company remains hopeful about attracting major brands for future advertising.
– Monetization strategies encompass advertising, subscriptions, licensing, pay-per-view, tipping, and platform fees.
– Rumble plans to be selective with minimum guarantee deals to ensure a positive return on investment.

### Company Outlook
Rumble anticipates continued revenue growth throughout 2024, focusing on reaching adjusted EBITDA breakeven by 2025. The emphasis on monetization to support content costs remains a priority.

### Additional Considerations
– Brand advertising faced challenges during the quarter, and artificial constraints were created by GARM.
– Increased engagement was noted during the election cycle, and the Miami Dolphins’ move to Rumble Cloud signifies potential growth in the sports segment.
– Rumble’s cash and marketable securities decreased from $219.5 million at the end of 2023 to $154.2 million.

During a Q&A session, CEO Chris Pavlovski expressed optimism about attracting major brands and noted that significant political events and interviews with high-profile individuals are expected to drive traffic to the platform. Rumble’s ongoing efforts will focus on revenue sharing to support content costs, while being cautious and selective about extending minimum guarantee deals.

With these developments, Rumble is positioned to continue its growth trajectory while navigating industry challenges. The company’s strong cash position and strategic plans aim to provide sustainable growth and profitability in the future.