Q2 2024 Rumble Inc Earnings Call

August 12, 2024

Subs by www.zeoranger.co.uk

Speaker Change: Ladies and gentlemen, greetings and welcome to the Rumble second quarter 2024 awnings conference call.

Operator: Rumble, 2nd quarter, 2024, Arning's Concerns Call At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad.

Speaker Change: At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation.

Speaker Change: If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad.

Operator: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Shannon Devine, Investor Relations. Please go ahead.

Speaker Change: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Shannon Devine, in Vessel Relations. Please go ahead.

Shannon Devine: Thank you, Operator. I'm here today with Chris Pavlovski, Founder, Chairman, and CEO of Rumble, Brandon Alexandroff, the CFO, and Tyler Hughes, the COO. A press release detailing our second quarter 2024 results was released today and available on the Investor Relations section of our company website. Before we begin the formal presentation, I would like to remind everyone that statements made on this call and webcast may include predictions, estimates, or other information that might be considered forward-looking.

Shannon Devine: Thank you, Operator. I'm here today with Chris Pavlovski, Founder, Chairman, and CEO of Rumble, Brandon Alexandroff, the CFO, and Tyler Hughes, the COO.

Speaker Change: A press release detailing our second quarter 2024 results was released today and available on the Investor Relations section of our company website.

Speaker Change: Before we begin the formal presentation, I would like to remind everyone that statements made on this call and webcast may include predictions, estimates, or other information that might be considered forward-looking.

Shannon Devine: All forward-looking statements are made only as of the date of this webcast and should be considered in conjunction with the cautionary statements in our earnings release and the risk factors included in our filings with the SEC.

Speaker Change: All forward-looking statements are made only as of the date of this webcast and should be considered in conjunction with the cautionary statements in our earnings release and the risk factors included in our filings with the SEC.

Shannon Devine: Future company updates will be available via press release and company updates via the company's identified social media channels. I will now turn the call over to Rumble's founder, chairman, and CEO, Chris Pavlovski. Thank you, Shannon.

Speaker Change: Future company updates will be available via press release and company updates via the company's identified social media channels. I will now turn the call over to Rumble's founder, chairman, and CEO, Chris Pavlovski.

Christopher Pavlovski: As indicated by our results, the second quarter is solid and early signs in the third quarter are starting to get me very excited about both our video and cloud business. The Rumble video platform is now at a stage where I believe our user interface and user experience are becoming comparable to YouTube. The tools we've built to monetize the platform are starting to work and accelerate. Even with advertising boycotts and artificial headwinds, which I will explain more later, we were able to grow our users, ARPU, and revenue.

Chris Pavlovski: Thank you, Shannon. As indicated by our results, the second quarter is solid and early signs in the third quarter are starting to get me very excited about both our video and cloud businesses.

Chris Pavlovski: The Rumble video platform is now at a stage where I believe our user interface and user experience are becoming comparable to YouTube.

Chris Pavlovski: The tools we've built to monetize the platform are starting to work and accelerate.

Chris Pavlovski: Even with advertising boycotts and artificial headwinds, which I will explain more later, we were able to grow our users, ARPU, and revenue.

Christopher Pavlovski: With our shift in organizational focus to revenue, I previously committed to introducing average revenue per user or ARPU as a key business metric. Better Reflecting Management's Evolving Assessment of Our Business. This quarter, we took that step and introduced ARPU for the second quarter, ARPU was $0.37, representing growth of 19% versus $0.31 in the first quarter. Additionally, our 53 million MAUs this quarter represented our 10th consecutive quarter of MAUs over 40 million and growth over the first quarter of 2024.

Chris Pavlovski: With our shift in organizational focus to revenue, I previously committed to introducing Average Revenue Per User, or ARPU, as a key business metric this year.

Chris Pavlovski: Better Reflecting Management's Evolving Assessment of Our Business.

Chris Pavlovski: This quarter, we took that step and introduced ARPU for the second quarter. For the second quarter, ARPU was $0.37, representing growth of 19% versus $0.31 in the first quarter.

Chris Pavlovski: Additionally, our 53 million MAUs this quarter represented our 10th consecutive quarter of MAUs over 40 million and growth over the first quarter of 2024.

Christopher Pavlovski: As you may have seen, it has been a very busy few weeks in the advertising world. A few weeks ago, an investigation by the House Judiciary Committee, Chairman Jim Jordan revealed a troubling conspiracy centered around an initiative called the Global Alliance for Responsible Media, known as Garm.

Chris Pavlovski: As you may have seen, it has been a very busy few weeks in the advertising world.

Speaker Change: A few weeks ago, an investigation by the House Judiciary Committee, Chairman Jim Jordan revealed a troubling conspiracy centered around an initiative called the Global Alliance for Responsible Media, known as GARM.

Christopher Pavlovski: . Under the guise of setting a brand safety standard to govern advertising purchase decisions, GARM effectively created an advertising cartel more powerful than most of the media buying agencies in the world. The so-called standards were in fact an agreement among competing advertisers and ad agencies not to advertise with sites like Rumble and X, which has clearly created an artificial headwind for our business. Last week, we filed an antitrust lawsuit alongside S, alleging that these actions are unlawful collusion that harms competition.

Speaker Change: Under the guise of setting a brand safety standard to govern advertising purchase decisions, GARM effectively created an advertising cartel more powerful than most of the media buying agencies in the world.

Speaker Change: The so-called standards were, in fact, an agreement among competing advertisers and ad agencies not to advertise with sites like Rumble and X.

Speaker Change: which has clearly created an artificial headwind for our business. Last week, we filed an antitrust lawsuit alongside X, alleging that these actions are unlawful collusion that harms competition.

Christopher Pavlovski: As a result of this activity, I am very pleased to say that it was reported last Thursday, two days after we filed our lawsuit, that the World Federation of Advertisers said that it's suspending the operations of GARM. This is a very big step in the right direction, and it cannot be understated. That's not the only step in the right direction. Last week, a federal court ruled in favor of the Department of Justice in its antitrust lawsuit against Google.

Speaker Change: As a result of this activity, I am very pleased to say that it was reported last Thursday, two days after we filed our lawsuit, that the World Federation of Advertisers said that it's suspending the operations of GARM.

Speaker Change: This is a very big step in the right direction, and it cannot be understated. That's not the only step in the right direction. Last week, a federal court ruled in favor of the Department of Justice in its antitrust lawsuit against Google.

Christopher Pavlovski: Everyone has known it for years. But now a court has finally ruled that Google is a monopolist who has harmed competition. This decision bodes well for our two antitrust lawsuits against Google, both of which build on DOJ's work. If I can be candid for a moment, because of Garmin activists, attracting brand advertisers has been more difficult than anticipated, which can negatively affect our whose rate of growth. The fact that we have been put in this position makes me sick to my stomach.

Speaker Change: Everyone has known it for years, but now a court has finally ruled that Google is a monopolist who has harmed competition.

Speaker Change: This decision bodes well for our two antitrust lawsuits against Google, both of which build on DOJ's work.

Speaker Change: If I can be candid for a moment...

Speaker Change: Because of Garmin activists, attracting brand advertisers has been more difficult than anticipated, which can negatively affect ARPU's rate of growth.

Christopher Pavlovski: Our users deserve better, our creators deserve better, frankly, we all deserve better as a society. There are millions of creators out there who have a voice, a valued opinion and want to be heard. Other companies, including North News Corp, have also disclosed that they have been harmed by Garmin, and the existence of these coalitions of bad actors trying to put an artificial in sweeping stranglehold on the economics of advertising should concern everyone.

Speaker Change: The fact that we have been put in this position makes me sick to my stomach. Our users deserve better. Our creators deserve better. Frankly, we all deserve better as a society. There are millions of creators out there who have a voice, valued opinion, and want to be heard.

Speaker Change: Other companies, including News Corp, have also disclosed that they have been harmed by Garm. And the existence of these coalitions of bad actors trying to put an artificial and sweeping stranglehold on the economics of advertising should concern everyone.

Christopher Pavlovski: Despite the headwind with brands, we continue to make strides with direct response advertisers, and we were still able to grow revenue in ARPU in the second quarter. I'd like to walk you through an example which highlights how advertisers have leveraged the full capability set across Rumble Advertising Center, known as RAC, in our Creator Sponsorship, Sticker Mule, a global e-commerce business focused on customized products, has tripled its investment into Rumble advertising. This partnership started with a six-figure test campaign with our sports properties to drive awareness and sample our premium creator sponsorship to test performance. After a successful test campaign, in fact, one creator converted so well that the Sticker Mule website went down.

Speaker Change: Despite the headwind with brands, we continue to make strides with direct response advertisers, and we were still able to grow revenue in ARPU in the second quarter. I'd like to walk you through an example which highlights how advertisers have leveraged the full capabilities set across Rumble Advertising Center, known as RAC, and our creator sponsorships.

Unknown Attendee: Rumble 2nd quarter, 2024, Oning's Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation.

Speaker Change: Sticker Mule, a global e-commerce business focused on customized products, has tripled its investment into Rumble advertising.

Speaker Change: This partnership started with a six-figure test campaign with our sports properties to drive awareness.

Unknown Attendee: If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad. As a reminder, this conference is being recorded.

Speaker Change: and Sample, our premium creator sponsorship to test performance. After a successful test campaign, in fact, one creator converted so well that the Sticker Mule website went down. We were able to expand our partnership to seven figures.

Christopher Pavlovski: We were able to expand our partnership to seven figures. Sticker Mule then doubled down on the creators who over-indexed on performance and built the drumbeat of awareness via rack, pre-roll, and display ads. The ability of our sales team to work with clients on a multi-format campaign via pre-roll, display, sports, and creator sponsorships gives us a unique advantage to bring a new value to advertisers. Additionally, the opportunity for advertisers to cast a wide net across a variety of creators and optimize based on performance is precisely the value that our new Rumble Studio monetization tools will bring as that product continues to scale.

Unknown Attendee: It is now Thank you, operator.

Speaker Change: Sycamore then doubled down on the creators who over-indexed on performance and built the drumbeat of awareness via rack, free roll, and display ads.

Shannon Devine: I'm here today with Chris Pavlovski, founder, chairman, and CEO Rumble.

Shannon Devine: Brandon Alexandroff, the CFO, and Tyler Hughes, the COO. A press release detail in our second quarter, 2024 results, was released today and available on the investor relations section of our company website. Before we begin the formal presentation, I would like to remind everyone that statements made on this call and webcast may include predictions, estimates, or other information that might be considered for looking.

Speaker Change: The ability of our sales team to work with clients on a multi-format campaign via free-roll, display, sports, and creator sponsorships gives us a unique advantage to bring a new value to advertisers.

Speaker Change: Additionally, the opportunity for advertisers to cast a wide net across a variety of creators and optimize based on performance is precisely the value that our new Rumble Studio monetization tools will bring as that product continues to scale.

Shannon Devine: All four looking statements are made only as of the date of this webcast and should be considered in conjunction with the cautionary statements in our earnings release and the risk factors included in our filings with the SEC. Future company updates will be available via press release and company updates via the company's identified social media channels.

Christopher Pavlovski: And to summarize, Rumble's revenue through RAC.., is growing with direct response advertisers and not yet with brands. If boycotts end and brands start spending, we expect to see a material positive impact on revenue and ARPU growth. With respect to the election cycle, early indications are pointing towards much better engagement than we saw in 2022. According to StreamCharts, a third-party measurement service, in July, Rumble saw a 34% increase in average livestream viewers month over month. Additionally, StreamCharts also reported that we set a record for concurrent U.S. livestream viewers during the debate between President Biden and President Trump in late June.

Speaker Change: To summarize, Rumble's revenue through RAC is growing with direct response advertisers and not yet with brands. If boycotts end and brands start spending, we expect to see a material positive impact on revenue and ARPU growth.

Christopher Pavlovski: I will now turn the call over to Rumble founder, chairman, and CEO Chris Pavlovski. Thank you, Shannon. As indicated by our results, the second quarter is solid. And early signs in the third quarter are starting to get me very excited about both our video and cloud businesses. The Rumble video platform is now at a stage where I believe our user interface and user experience are becoming comparable to YouTube. The tools we've built to monetize the platform are starting to work and accelerate.

Speaker Change: With respect to the election cycle, early indications are pointing towards much better engagement than we saw in 2022.

Speaker Change: According to Stream Charts

Speaker Change: A third-party measurement service, in July, Rumble saw a 34% increase in average livestream viewers month over month. Additionally, StreamCharts also reported that we set a record for concurrent U.S. livestream viewers during the debate between President Biden and President Trump in late June.

Christopher Pavlovski: Due to the strong engagement in July, we have seen an early but promising adoption of Rumble Premium, a subscription service that removes ads on videos. Turning to cloud, the excitement for Rumble cloud is starting to take hold. Although it is much different and has a much longer sales cycle than Rumble's videos business, the pipeline and initial success of landing customers have our teams very energized. Initially, the expectation was that Rumble would land customers primarily in the parallel economy segment, and we have with customers like Trump Media and Technology Group.

Christopher Pavlovski: Even with advertising boycotts and artificial headwinds, which I will explain more later, we were able to grow our users, RPU, and revenue. With our shift in organizational focus to revenue, I previously committed to introducing average revenue per user or RPU as a key business metric this year. Better reflecting management, management, and evolving assessment of our business. This quarter, we took that step and introduced RPU for the second quarter, RPU was 37 cents representing growth of 19% versus 31 cents in the first quarter.

Speaker Change: Due to the strong engagement in July, we have seen an early but promising adoption of Rumble Premium, a subscription service that removes ads on videos.

Speaker Change: Turning to cloud, the excitement for RumbleCloud is starting to take hold. Although it is much different and has a much longer sales cycle than Rumble's videos business, the pipeline and initial success of landing customers have our teams very energized.

Speaker Change: Initially, the expectation was that Rumble would land customers primarily in the parallel economy segment.

Christopher Pavlovski: In the second quarter, we also announced that Public Score will migrate to our platform along with others who share the same mission as Rumble. Most notably, though, we recently landed a different kind of customer, one that wasn't driven towards us by our mission but instead by our capabilities and economics. Months ago, we announced that one of the premier NFL franchises, the Miami Dolphins, will migrate to the Rumble cloud. This is evidence that the Rumble cloud is more than just a valued asset of the parallel economy, and there is a broader desire by major businesses to use our service. But it doesn't end there.

Speaker Change: and we have with customers like Trump Media and Technology Group.

Speaker Change: In the second quarter, we also announced that Public Scoral will migrate to our platform along with others who share the same mission as Rumble. Most notably though, we recently landed a different kind of customer.

Christopher Pavlovski: Additionally, our 53 million MAUs this quarter represented our 10th consecutive quarter of MAUs over 40 million in growth over the first quarter of 2024. As you may have seen, it has been a very busy few weeks in the advertising world. A few weeks ago, an investigation by the House Judiciary Committee Chairman Jim Jordan revealed a troubling conspiracy centered around an initiative called the Global Alliance for Responsible Media known as Garm. Under the guise of setting a brand safety standard to govern advertising purchase decisions, Garm effectively created an advertising cartel more powerful than most of the media buying agencies in the world.

Speaker Change: One that wasn't driven towards us by our mission, but instead by our capabilities and economics.

Speaker Change: Moments ago we announced that one of the premier NFL franchises, the Miami Dolphins, will migrate to the Rumble Cloud. This is evidence that the Rumble Cloud is more than just a valued asset of the parallel economy, and there is a broader desire by major businesses to use our service.

Christopher Pavlovski: We haven't been shy about our ambition to go after large customers for our cloud, which now includes governments. You may have heard of Google Cloud's recent announcement with the L-South Adoring government for a $500 million strategic partnership to modernize the country's IT services. Recently, I had the pleasure of meeting multiple times with the newly elected Prime Minister of Macedonia, where we discussed the possibility of RumbleCloud's direct involvement in their country's digital transformation efforts, similar to what was done in El Salvador.

Speaker Change: It doesn't end there.

Speaker Change: We haven't been shy about our ambition to go after large customers for our cloud.

Speaker Change: which now includes governments. You may have heard of Google Cloud's recent announcement with the El Salvadorian government for a $500 million strategic partnership to modernize the country's IT services.

Christopher Pavlovski: The so-called standards were in fact an agreement among competing advertisers and ad agencies not to advertise with sites like Rumble and X. Fox, which has clearly created an artificial headwind for our business. Last week, we filed an antitrust lawsuit alongside X, alleging that these actions are unlawful collusion that harms competition. As a result of this activity, I am very pleased to say that it was reported last Thursday, two days after we filed our lawsuit that the World Federation of Advertisers said that it's suspending the operations of GARM. This is a very big step in the right direction and it cannot be understated. That's not the only step in the right direction.

Speaker Change: Recently, I had the pleasure of meeting multiple times with the newly elected Prime Minister of Macedonia, where we discussed the possibility of RumbleCloud's direct involvement in their country's digital transformation efforts.

Christopher Pavlovski: To our delight, Prime Minister Mikoski recently publicly shared his enthusiasm for the possibility of a partnership with Rumble, an exciting sign for all of us at the company. As I started this call, our second quarter was solid, but the excitement of this business lays ahead. On cloud, we are now partnered with the Miami Dolphins and on Rumble video, user engagement is off to a flying start for the second half of 2024. Without question, we are on track for our Super Bowl.

Speaker Change: similar to what was done in El Salvador. To our delight, Prime Minister Mikoski recently publicly shared his enthusiasm for the possibility of a partnership with Rumble, an exciting sign for all of us at the company.

Speaker Change: As I started this call, our second quarter was solid, but the excitement of this business lays ahead. On cloud, we are now partnered with the Miami Dolphins.

Christopher Pavlovski: Last week, a federal court ruled in favor of the Department of Justice in its antitrust lawsuit against Google. Everyone has known it for years, but now a court has finally ruled that Google is a monopolist who has harmed competition. This decision bodes well for our two antitrust lawsuits against Google, both of which build on DOJ's work. If I can be candid for a moment, because of GARM and activists, attracting brand advertisers has been more difficult than anticipated, which can negatively affect our prudent rate of growth.

Brandon Alexandroff: And on Rumble Video, user engagement is off to a flying start for the second half of 2024. Without question, we are on track for our Super Bowl. With that, I'll turn the call over to our CFO, Brandon Alexandroff. Thanks, Chris.

Brandon Alexandroff: With that, I'll turn the call over to our CFO, Brandon Alexandroff. Thanks, Chris. I'll now take you through our second quarter financials at a very high level before turning the call over to the operator for Q&A. For the second quarter of 2024, we reported revenues of $22.5 million, a sequential increase of 27% compared to the $17.7 million we delivered in the first quarter due to increases in sponsorship revenue, subscriptions, and other initiatives.

Brandon Alexandroff: As Chris mentioned, with an increased focus on revenue, you will see in our Q2 financial statements that we moved to this aggregate revenue into new subcategories. We adopted these two subcategories in order to facilitate the introduction of the ARPU metric.

Brandon Alexandroff: I'll now take you through our second quarter financials at a very high level before turning the call over to the operator for Q&A.

Brandon Alexandroff: For the second quarter of 2024, we reported revenues of $22.5 million, a sequential increase of 27% compared to the $17.7 million we delivered in the first quarter due to increases in sponsorship revenue, subscriptions, and other initiatives.

Christopher Pavlovski: The fact that we have been put in this position makes me sick to my stomach. Our users deserve better, our creators deserve better. Frankly, we all deserve better as a society. There are millions of creators out there who have a voice, a valued opinion, and want to be heard. Other companies, including North News Corp, have also disclosed that they have been harmed by GARM, and the existence of these coalitions of bad actors trying to put an artificial and sweeping stranglehold on the economics of advertising should concern everyone. Despite the headwind with brands, we continue to make strides with direct response advertisers, and we were still able to grow revenue in RPU in the second quarter.

Brandon Alexandroff: Previously, the two revenue types that we presented were advertising and other services in cloud. Starting in Q2, we disaggregated revenue into audience monetization and other initiatives. Audience monetization includes revenue that we generate from our user base, such as advertising on Rumble, subscription, licensing, pay-per-view, tipping, and platform fees. Other initiatives revenue includes monetization outside of our user base and currently includes rack for publishers and cloud. Quarterly ARPU is calculated as quarterly audience monetization revenue divided by MAUs for the relevant quarter and does not include other initiatives revenue.

Chris Pavlovski: Previously, the two revenue types that we presented were advertising and other services in cloud. Starting in Q2, we disaggregated revenue into audience monetization and other initiatives.

Speaker Change: Audience monetization includes revenue that we generate from our user base such as advertising on Rumble, subscription, licensing, pay-per-view, tipping, and platform fees.

Christopher Pavlovski: I'd like to walk you through an example which highlights how advertisers have leveraged the full capability set across Rumble Advertising Center, known as RAC, in our creator sponsorships. Sticker Mule, a global e-commerce business focused on customized products, has tripled its investment into Rumble Advertising. This partnership started with a six-figure test campaign with our sports properties to drive awareness, and sample our premium creator sponsorship to test performance.

Speaker Change: Other initiatives revenue includes monetization outside of our user base and currently includes rack for publishers and cloud.

Speaker Change: Quarterly ARPU is calculated as quarterly audience monetization revenue divided by MAUs for the relevant quarter and does not include other initiatives revenue.

Brandon Alexandroff: For the second quarter, we reported ARPU of 37 cents compared to 31 cents in the first quarter of 2024. Today, we believe ARPU is a better reflection of our management team's focus. As a result, this will be the last quarter that we will be reporting estimated minutes watched per month and hours of uploaded video per day. It's important to note that during the early stages of monetization, we may still experience a lag in monetization during periods where MAUs spike from one-off or cyclical events, such as an election, which may also contribute to volatility in ARPU on a quarterly basis.

Speaker Change: For the second quarter, we reported ARPU of 37 cents, compared to 31 cents in the first quarter of 2024.

Christopher Pavlovski: After a successful test campaign, in fact, one creator converted so well that the Sticker Mule website went down. We were able to expand our partnership to seven figures. Sticker Mule then doubled down on the creators who over-indexed on performance and built the drumbeat of awareness via RAC, pre-roll, and display ads. The ability of our sales team to work with clients on a multi-format campaign via pre-roll, display, sports, and creator sponsorships give us a unique advantage to bring a new value to advertisers.

Speaker Change: Today, we believe ARPU is a better reflection of our management team's focus. As a result, this will be the last quarter that we will be reporting estimated minutes watched per month and hours of uploaded video per day.

Speaker Change: It's important to note that during the early stages of monetization, we may still experience a lag in monetization during periods where MAUs spike from one-off or cyclical events, such as an election, which may also contribute to volatility in ARPU on a quarterly basis.

Christopher Pavlovski: Additionally, the opportunity for advertisers to cast a wide net across a variety of creators in optimized based on performance is precisely the value that our new Rumble Studio monetization tools will bring as that product continues to scale.

Brandon Alexandroff: Cost of services decreased to $35.7 million for the quarter compared to $40.8 million in the second quarter of 2023 due to a decrease in programming and content costs of $5.6 million offset by an increase in other costs of services of $0.4 million.

Speaker Change: Cost of services decreased to $35.7 million for the quarter compared to $40.8 million in the second quarter of 2023 due to a decrease in programming and content costs of $5.6 million offset by an increase in other costs of services of $0.4 million.

Christopher Pavlovski: To summarize, Rumble's revenue through RAC is growing with direct response advertisers and not yet with brands. If boycotts end and brands start spending, we expect to see a material positive impact on revenue in RPU growth. With respect to the election cycle, early indications are pointing towards much better engagement than we saw in 2022. According to StreamCharts, a third-party measurement service in July Rumble saw a 34% increase in average live stream viewers month over month. Additionally, StreamCharts also reported that we set a record for concurrent US live stream viewers during the debate between President Biden and President Trump in late June.

Brandon Alexandroff: Moving to our cash position. We ended the second quarter of 2024 with $154.2 million in cash, cash equivalents, and marketable securities, compared to $219.5 million as of December 31, 2023. And as of June 30, 2024, our programming and content agreements had a minimum contractual cash commitment of $55 million, down from $76 million in the first quarter and $106 million as of December 31, 2023. Our cash position remains healthy, and we continue to maintain sufficient cash to meet our ongoing capital needs.

Speaker Change: Moving to our cash position.

Speaker Change: We ended the second quarter of 2024 with $154.2 million in cash, cash equivalents, and marketable securities.

Speaker Change: compared to $219.5 million as of December 31, 2023.

Speaker Change: And, as of June 30th, 2024, our programming and content agreements had a minimum contractual cash commitment of $55 million, down from $76 million in the first quarter and $106 million as of December 31st, 2023.

Speaker Change: Our cash position remains healthy, and we continue to maintain sufficient cash to meet our ongoing capital needs.

Brandon Alexandroff: Before I conclude, our focus on monetization is front and center, and as Chris discussed, we have experienced some headwinds associated with GARM as it relates to our advertising business. Despite the headwinds with Garm, if our sponsorship agreements with advertisers continue to perform as expected, and political advertising ramps up as the election cycle intensifies, we expect our revenues to continue to increase sequentially throughout 2024. Since inception, we have always operated like a bootstrap business and this mentality remains part of our culture.

Christopher Pavlovski: Due to the strong engagement in July, we have seen an early but promising adoption of Rumble Premium, a subscription service that removes ads on videos. Turning to cloud, the excitement for Rumble Cloud is starting to take hold. Although it is much different and has a much longer sales cycle than Rumble's videos business, the pipeline and initial success of lending customers have our teams very energized. Initially, the expectation was that Rumble would land customers primarily in the parallel economy segment, and we have with customers like Trump Media and Technology Group.

Speaker Change: Before I conclude, our focus on monetization is front and center, and as Chris discussed, we have experienced some headwinds associated with GARM as it relates to our advertising business.

Speaker Change: Despite the headwinds with Garm, if our sponsorship agreements with advertisers continue to perform as expected and political advertising ramps up as the election cycle intensifies, we expect our revenues to continue to increase sequentially throughout 2024.

Speaker Change: Since inception, we have always operated like a bootstrap business, and this mentality remains part of our culture. As we ramp up monetization and maintain discipline around our cost structure, we continue to expect to move materially towards adjusted EBITDA break-even in 2025.

Operator: As we ramp up monetization and maintain discipline around our cost structure, we continue to expect to move materially towards adjusted EBITDA break-even in 2025. Before I turn the call over to the operator, I invite you all to join Chris this evening at 6.30pm Eastern Time for an exclusive post-earnings interview with Matt Kohrs to be streamed live on the Matt Kohrs Rumble channel. That concludes my prepared remarks. I will now turn the call over to the operator to open up the line for questions.

Christopher Pavlovski: In the second quarter, we also announced that public scroll will migrate to our platform along with others who share the same mission as Rumble. Most notably, though, we recently landed different kind of customer, one that wasn't driven towards us by our mission, but instead by our capabilities and economics.

Speaker Change: Before I turn the call over to the operator, I invite you all to join Chris this evening at 630 p.m. Eastern Time for an exclusive post-earnings interview with Matt Kors to be streamed live on the Matt Kors Rumble channel.

Christopher Pavlovski: Moments ago, we announced that one of the premier NFL franchises, the Miami dolphins will migrate to the Rumble Cloud. This is evidence that the Rumble Cloud is more than just the valued asset of the parallel economy, and there is a broader desire by major businesses to use our service. It doesn't end there.

Speaker Change: That concludes my prepared remarks. I will now turn the call over to the operator to open up the line for questions.

Operator: Thank you. Ladies and gentlemen, we will now be conducting a question and answer session. If you would like to ask a question, please press star and 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

Speaker Change: Thank you.

Christopher Pavlovski: We haven't been shy about our ambition to go after large customers for our cloud, which now includes governments. You may have heard of Google Cloud's recent announcement with the El Salvadorian government for a $500 million strategic partnership to modernize the country's IT services. Recently, I had the pleasure of meeting multiple times with the newly elected Prime Minister of Macedonia, where we discussed the possibility of Rumble Cloud's direct involvement in their country's digital transformation efforts, similar to what was done in El Salvador. To our delight, Prime Minister Mikovsky recently publicly shared his enthusiasm for the possibility of a partnership with Rumble, an exciting sign for all of us at the company.

Speaker Change: Ladies and gentlemen, we will now be conducting a question and answer session.

Speaker Change: If you would like to ask a question, please press star and 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and 2 if you would like to remove your question from the queue.

Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker Change: Ladies and gentlemen, we will wait for a moment while we poll for questions.

Speaker Change: Our first question is from the line of Jason Helstein with Oppenheimer and Company. Please go ahead.

Jason Helfstein: Hey everybody, I'll ask a few questions and I'll get back in the queue. So, the revenue improvement that we saw, I think it was like... 4.7 million sequential. Also, it came in about a two and a half, better than we were expecting.

Jason Helstein: Hi everybody, I'll ask a few and I'll get back in the queue. So the revenue improvement that we saw

Christopher Pavlovski: As I started this call, our second quarter was solid, but the excitement of this business lays ahead. On cloud, we are now partnered with the Miami dolphins, and on Rumble video, user engagement is off to a flying start for the second half of 2024. Without question, we are on track for our Super Bowl.

Jason Helstein: It was like 4.7 million sequentially, also came in about 2.5 million, better than we were expecting. How much of that was, just given all the stuff you talked about, how much of that was RAC versus...

Jason Helfstein: How much of that was, given all the stuff you talked about, how much of that was RAC versus... I guess, NotRack, and then.., from the Sequentials family. And then I guess within it, are you trying to say that like performance was better, but brand was worse? I'll do one at a time, just maybe unpack that a bit, within the 4.7 sequential increase, like how much rack, how much not rack. Elaborate. Hi, Jason. This is Chris.

Brandon Alexandroff: With that, I'll turn the call over to our CFO, Brandon, Alexandra. Thanks, Chris. I'll now take you through our second quarter financials at a very high level before turning the call over to the operator for Q&A. For the second quarter of 2024, we reported revenues of $22.5 million. A sequential increase of 27 percent compared to the 17.7 million we delivered in the first quarter due to increases in sponsorship revenue, subscriptions, and other initiatives.

Speaker Change: I guess, not RAC, and then.

Speaker Change: from a sequential standpoint, and then, I guess, within it, are you trying to say that, like, performance was better but brand was worse?

Speaker Change: I'll do one at a time. Just maybe unpack that a bit. So within the 4.7 sequential increase, like how much rack, how much not rack, and just elaborate a bit more.

Christopher Pavlovski: With respect to the revenue increase, it's kind of like a tide of multiple different things. What we've seen on our end is obviously RAC contributed to that, Creator Sponsorships contributed to that. And one thing that's important to note is that we are in the middle of an effort of moving all the Creator Sponsorships into RAC either way, so that it would all be kind of coming out of RAC hopefully by the end of the year, if not early by next year.

Brandon Alexandroff: As Chris mentioned, with an increased focus on revenue, you will see in our Q2 financial statements that we moved to disaggregate our revenue into new subcategories. We adopted these two subcategories in order to facilitate the introduction of the arpumetric. Previously, the two revenue types that we presented were advertising and other services in cloud. Starting in Q2, we disaggregated revenue into audience monetization and other initiatives. Audience monetization includes revenue that we generate from our user base, such as advertising on Rumble, subscription, licensing, pay-per-view, tipping, and platform fees.

Speaker Change: Hi Jason, this is Chris.

Speaker Change: With respect to the revenue increase, it's kind of like a tide of multiple different things. What we've seen on our end is obviously RAC contributed to that, Creator Sponsorships contributed to that. And one thing that's important to note is that we are in the middle of an effort of moving all the Creator Sponsorships into RAC either way, so that it would all be kind of coming out of RAC hopefully by the end of the year, if not early by next year.

Christopher Pavlovski: So that automation process that we've talked about many times in the past is in the process of us getting everything into RAC. But both RAC and that Creator Sponsorship portion are both contributing to that revenue increase here. It's kind of a rising tide. Unknown Attendee And then just tell me the size of sales and marketing was up like 3 million sequentially, talk about, and like what was in that. I need that one time. Unknown Attendee, Jason Helfstein, Matt Kohrs, Rumble, Unknown Attendee Yes, sir. I can grab that Jason.

Speaker Change: that automation process that we've talked about many times in the past is in the process of us getting everything into RAC. But both RAC and that creator sponsorship portion are both contributing to that revenue increase here. It's kind of a rising tide.

Brandon Alexandroff: Other initiatives revenue includes monetization outside of our user base, and currently includes rack for publishers and cloud. Quarterly ARPU is calculated as Quarterly Audience monetization revenue, divided by MAUs for the relevant quarter, and does not include other initiatives revenue. For the second quarter, we reported ARPU of 37 cents, compared to 31 cents in the first quarter of 2024. Today, we believe ARPU is a better reflection of our management team's focus. As a result, this will be the last quarter that we will be reporting estimated minutes watch per month, and hours of uploaded video per day.

Speaker Change: And then just tell me the types of sales and marketing was up like 3 million sequentially. You know maybe just talk about, Brandon, like what was in that? Was any of that one time?

Unknown Attendee: So as we we discussed it in the 10 Q, we did a barter deal with a media company, whereby we purchased approximately $3 million worth of advertising inventory from them during the second quarter. So the sales and marketing expense was otherwise flat relative to recent quarters outside of that $3 million increase. There'll be a similar advertising purchase on Rumble by that media company over the coming quarters. So really, like, if we were going to just, like... Unknown Attendee, Brandon Alexandroff, Christopher Pavlovski, Matt Kohrs, Rumble, Unknown Attendee Um... No, not specifically.

Brandon Alexandroff: And does it just tie, you know, what does that tie to other revenue initiatives? Yeah, sure.

Brandon Alexandroff: I can grab that Jason. So as we we discussed it in the 10Q, we did a barter deal with a media company whereby we purchased approximately three million dollars worth of advertising inventory from them during the second quarter.

Brandon Alexandroff: So the sales and marketing expense was otherwise flat relative to recent quarters outside of that $3 million increase. There will be a similar advertising purchase on Rumble by that media company over the coming quarters.

Brandon Alexandroff: It's important to note that during the early stages of monetization, we may still experience a lag in monetization during periods where MAUs spike from one-off or cyclical events, such as an election, which may also contribute to volatility in ARPU on a quarterly basis. Cost of services decreased to 35.7 million for the quarter, compared to 40.8 million in the second quarter of 2023, due to a decrease in programming and content costs of 5.6 million, offset by an increase in other costs of services of 0.4 million.

Speaker Change: So really like if we were just like to be intellectually honest about it or academic, that really would be more like cost of revenue.

Unknown Attendee: Basically, you're reselling Fort Revenue, and you're re-selling it, and there's some net impact. I would do that cost roughly three mil, monetize it for more than three mil, right? I guess it's almost like there's some controversy.

Speaker Change: In a way.

Speaker Change: Basically, you're reselling, you bought revenue and you're reselling it and there's some net impact. So, obviously, that costs roughly $3 million. You monetize it for more than $3 million, right, I assume.

Brandon Alexandroff: Moving to our cash position, we ended the second quarter of 2024 with 154.2 million cash equivalents and marketable securities, compared to 219.5 million as of December 31, 2023. And, as of June 30, 2024, our programming and content agreements had a minimum contractual cash commitment of 55 million, down from 76 million in the first quarter and 106 million as of December 31, 2023. Our cash position remains healthy and we continue to maintain sufficient cash to meet our ongoing capital needs.

Jason Helfstein: Hey Jason, I'll add a little more color to that. So this is with respect to us trying different new channels for advertising and in the previous quarter in Q2, we advertised on these new channels, such as radio stations to get more brand awareness for Rumble. With respect to the company that we worked with there, what they're going to do in the future is that they're planning to purchase through advertising on Rumble and the coming quarters, which hasn't happened yet.

Speaker Change: Anyway

Speaker Change: Um

Speaker Change: I mean, I guess it's almost like they're like...

Speaker Change: Hi Jason, I'll add a little more color to that. So this is with respect to us

Jason Helstein: trying different new channels for advertising and in the in the previous quarter in Q2

Jason Helstein: We advertise on these new channels such as radio stations to get more brand awareness for Rumble.

Speaker Change: With respect to the company that we worked with there, what they're going to do in the future is that they're planning to purchase, through advertising on Rumble in the coming quarters, which hasn't happened yet.

Brandon Alexandroff: Before I conclude, our focus on monetization is front and center, and as Chris discussed, we have experienced some headwinds associated with Garm as it relates to our advertising business. Despite the headwinds with Garm, if our sponsorship agreements with advertisers continue to perform as expected and political advertising ramps up as the election cycle intensifies, we expect our revenues to continue to increase sequentially throughout 2024. Since inception, we have always operated like a bootstrap business, and this mentality remains part of our culture. As we ramp up monetization and maintain discipline around our cost structure, we continue to expect to move materially towards adjusted EBITDA break even in 2025.

Jason Helfstein: There's no revenue impact in Q2 on that. Unknown Speaker 1-1-1 Transcription by CastingWords Transcription by CastingWords, You did a barter deal, basically accepts. Yeah, like you have to accrue that as, sales payment. Was there cash out the door or like this was a legitimate order?

Speaker Change: There's no revenue impact in Q2 on that. You did a barter deal, you basically...

Speaker Change: except

Speaker Change: like you have to accrue that as basically like a sales payment. Was there cash out the door or like this was a legitimate barter agreement and just the timing didn't like even out yet?

Unknown Attendee: and just the timing. Unknown AttendeeCorrect. There's no cash out the door.

Unknown Attendee: This was just a barter deal, and the timing on only one side is a, I have one more and then I'll get back in the queue. That's two. Okay, so if you're going to, if you're kind of going to lean into cloud more. Project with Matt, again. Yeah. How should we think about like you want to take additional costs on to grow cloud? relative to, you know, the focus of inflection, profitability. Can you repeat that question? Yeah, I mean, I guess, you know.

Speaker Change: Correct, there's no cash out the door, this was just a barter deal and the timing on only one side has occurred.

Speaker Change: Okay, I have one more and then I'll get back in the queue. So...

Speaker Change: with respect to

Brandon Alexandroff: Before I turn the call over to the operator, I invite you all to join Chris this evening at 6.30pm Eastern Time for an exclusive post earnings interview with Matt Korz to be streamed live on the Matt Korz Rumble channel.

Speaker Change: Okay, so if you're gonna, if you're kind of gonna lean into cloud more, I mean, you know, I imagine if you do some project with Macedonia, I mean, it wouldn't be insignificant. I mean, I just...

Brandon Alexandroff: That concludes my prepared remarks.

Unknown Attendee: I will now turn the call over to the operator to open up the line for questions. Thank you, ladies and gentlemen, we will now be conducting a question and answer session. If you would like to ask a question, please press star and one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Ladies and gentlemen, we will wait for a moment while we pull for questions.

Speaker Change: Like how should we think about like you want to take additional costs on to grow cloud?

Speaker Change: you know, relative to, you know, the focus of inflecting like, you know, the profitability on the advertising business.

Speaker Change: Can you repeat that question? Yeah, I mean, I guess, you know...

Speaker Change: How much are you willing to sacrifice margin to grow the cloud business? If you're going to take a project with a government like Macedonia, which I have no idea how big or small that government is,

Unknown Attendee: How much are you willing to sacrifice margin to kind of grow the cloud? I mean, if you're going to take a project with a government like Matt's, does something like that require like upfront costs that way on margins while you ramp the cloud? So, without knowing the exact details of it yet, I couldn't answer that question, but at this point right now, we've invested quite a significant amount into our cloud and we have a lot of availability that we are looking to sell. So, our goal at our company right now is to sell that availability as fast as possible to bring in the revenue into the business. I'll jump back.

Speaker Change: Does something like that require like upfront costs that weigh on margins while you ramp the cloud business?

Jason Helfstein: Our first question is from the line of Jason Helfstein with Open Himer and Company. Please go ahead. Hey everybody, I'll ask a few and I'll get back in the queue. So the revenue improvement that we saw, it was like 4.7 million sequentially, also came in about two and a half million better than we were expecting. How much of that was given, all of the stuff you talked about, how much of that was rack versus I guess not rack and then from a sequential standpoint. And then I guess within it, are you trying to say that performance was better, but brand was worse? I'll do one at a time, just maybe unpack that a little bit.

Speaker Change: So with you know without knowing the exact details of it yet I couldn't answer that question but at this point right now we've invested quite a significant amount into our cloud and we have a lot of availability that we are looking to to sell so our goal at our company right now is to sell that availability as fast as possible to bring in the revenue into the business.

Jason Helfstein: Within the 4.7 sequential increase, how much rack, how much not rack and elaborate a bit more?

Speaker Change: Okay, I'll jump back in the queue. Thanks.

Scott Devitt: Thank you. Ladies and gentlemen, a reminder, if you wish to ask a question, please press star and 1. Our next question is from the line of Scott Devitt with Wedbush Securities. Please go ahead.

Speaker Change: Thank you. Ladies and gentlemen, a reminder, if you wish to ask a question, please press star and one.

Speaker Change: Our next question is from the line of Scott Divitt with Wedbush Securities. Please go ahead.

Scott Devitt: Hi, thank you. I had two questions. First on the cloud business, I was wondering if you could just talk, and a bit more about the Dolphins deal, like who you displace, and why they opted to go with RumbleCloud. That'd be helpful as you broaden out the offering, get an understanding of.., of the uniqueness of it relative to peers and then and then second, on the the core advertising business, you know, there's a perception or opportunity, I guess, for you. Broaden out the offering and that's been happening.

Scott Divitt: Hi, thank you. I had two questions. First, on the cloud business, I was wondering if you could just talk...

Scott Divitt: more about the Dolphins deal, like who you displaced and why they opted to go with RumbleCloud, that'd be helpful as you broaden out the offering. Get an understanding of...

Christopher Pavlovski: Hi Jason, this is Chris. With respect to the revenue increase, it's kind of like a tide of multiple different things. What we've seen on our end is obviously rack contributed to that, creator sponsorships contributed to that. And one thing that's important to note is that we are in the middle of an effort of moving all the creator sponsorships into rack either way so that it would all be kind of coming out of rack, hopefully by the end of the year, if not early by next year.

Christopher Pavlovski: So that automation process that we've talked about many times in the past is in the process of us getting everything into rack. But both rack and that creator sponsorship portion are both contributing to that revenue increase here. It's kind of a rising tide. And then just in terms of the tide, so sales and marketing was up like 3 million sequentially. Maybe just talk about brand and what was in that? Was any of that one time and does it just tide?

Scott Divitt: of the uniqueness of it relative to peers. And then second.

Scott Divitt: on the

Speaker Change: core advertising business, there's a perception or

Christopher Pavlovski: Over time, in terms of the types of content that's viewed every, you know, political cycle, you get a big take and viewership that you can, you know, then keep users from until the next cycle. So I'm curious, like, as we enter this cycle that we're in the middle of now, how you're thinking about the diversification of content, how important that that is, as well as, you know, the ability to diversify the advertiser base over time to continue to grow the revenue. Thank you. Hey, this is Chris.

Speaker Change: Broaden out the offering and that's been happening

Speaker Change: Over time in terms of the types of content that's viewed Every you know political cycle you get a big take in viewership that you can you know, then keep

Speaker Change: users from until the next cycle. So I'm curious, as we enter this cycle that we're in the middle of now,

Speaker Change: how you're thinking about the diversification of content, how important that that is, as well as the ability to diversify the advertiser base over time to continue to grow the revenue. Thank you.

Christopher Pavlovski: Thanks for joining. With respect to the second question, we've put a lot of effort in diversifying the content, specifically in the sports category by bringing in a lot of sports leagues, Power Slap, Nitro Rally, Cross Racing, SLS. And by doing that, we were hoping that that would bring in the brand advertisers for us. So that's kind of one of the strategies that we deployed in order to diversify. And with respect to the audiences, we have seen very good traction on the audience side with respect to those sports leagues kind of going into different areas. And we saw that a lot in the previous, I think it was in late of 2023.

Chris Pavlovski: Hey, this is Chris. Thanks for joining. With respect to the second question, we've put a lot of effort in diversifying the content, specifically in the sports category by bringing in a lot of sports leagues, Power Slap, Nitro Rally, Cross Racing, SLS.

Christopher Pavlovski: What does that tide to other revenue issues? Yes, sir. I can grab that Jason. As we discussed it in the 10Q, we did a barter deal with a media company whereby we purchased approximately $3 million worth of advertising. So the sales and marketing expense was otherwise flat relative to recent quarters outside of that 3 million increase. There will be a similar advertising purchase on rumble by that media company over the coming quarters.

Chris Pavlovski: And by doing that, we were hoping that that would bring in the brand advertisers for us. So that's kind of one of the strategies that we deployed in order to...

Chris Pavlovski: in order to diversify. And with respect to the audiences, we have seen like very good traction on the audience side with respect to the sports leagues kind of going into different areas. And we saw that a lot in the previous, I think it was in late of 2023.

Christopher Pavlovski: So really like if we were going to just like to be intellectually honest about it or academic, that really would be more like cost, to revenue. In a way. No, not specifically. You bought revenue and you're reselling it and there's some net impact. So obviously that cost roughly 3 mil, you monetize it for more than 3 mil, right, I assume. And so anyway, I guess it's almost like there's like controversy. Hey Jason, I'll add a little more color to that.

Christopher Pavlovski: And that's helped us a lot on the user side. With respect to the Dolphins, we've been able to capture a part of their business. We'll be offering a portion of their infrastructure services. We'll be taking over. I don't know exactly who that displaced or if it displaced anybody.

Chris Pavlovski: and...

Chris Pavlovski: That's helped us a lot on the user side.

Chris Pavlovski: with respect to the dolphins.

Speaker Change: We've been able to capture a part of their business. We'll be offering a portion of their infrastructure services that we'll be taking over. I don't know exactly who that displaced or if it displaced anybody, but our goal there was just trying to get into the door and have a partnership with them and be able to bring in their name and using our cloud services, and we executed on that. And for me, it's a pretty exciting step because it shows that...

Christopher Pavlovski: But our goal there was just trying to get into the door and have a partnership with them and be able to bring in their name and using our cloud services. And we executed on that. And for me, it's a pretty exciting step because it shows that, you know, although we're onboarding customers like Public Square and Trump Media and Technology Group and growing with them, we're now kind of hitting into the mainstream on the cloud side where we have the Dolphins that will be using our infrastructure as well. So this was a very big win internally for us, as it relates. Thank you for that. As it just to follow up on. Thanks, everyone. Thank you very much for putting up with us.

Christopher Pavlovski: So this is with respect to us trying different new channels for advertising and in the previous quarter in Q2, we advertise on these new channels such as like radio stations to get more brand awareness for Rumble. With respect to the company that we worked with there, what they're going to do in the future is that they're planning to purchase through advertising on Rumble and the coming quarters that which hasn't happened yet.

Speaker Change: You know, although we're onboarding customers like Public Square and Trump Media and Technology Group and growing with them, we're now kind of hitting into the mainstream on the cloud side where we have the dolphins that will be using our infrastructure as well. So this was a very big win internally for us.

Speaker Change: Thank you for that. Just to follow up on the content advertiser question.

Christopher Pavlovski: There's no revenue impacting Q2 on that. You did a border deal. You basically accept like you have to accrue that as basically like a sales payment. Was there cash out the door or like this was a legitimate border agreement and just the timing didn't even out yet? Correct, there's no cash out the door. This was just the border deal and the timing on only one side has occurred. Okay, one more than I'll get back to Q2.

Unknown Attendee: Time is of the essence everyone. So we will wait for 10 minutes and come back to you after. Thank you. Thanks, brother.

Speaker Change: Are you starting to get indications that advertisers are becoming?

Unknown Attendee: Thank you all for coming. All right. I have a little bit of a content advertiser question. When Twitter started.

Speaker Change: more comfortable with the platform as the content is diversifying. I mean, obviously, on a sequential basis, the business is growing.

Christopher Pavlovski: Somebody came up with this, newer buzzword, making it more Dublin local because I, Are you starting to get indications that advertisers are becoming.., more comfortable with the platform as the content is diversifying. I mean, obviously, on a sequential basis, the business is growing. And I'm just curious if you're starting to see any kind of step function change in advertiser comfort in using the platform to reach consumers. With respect to performance-based advertising, yes, obviously they've seen success within our platform.

Speaker Change: And, you know, I'm just curious if you're starting to see any kind of step function change in advertiser comfort in using the platform to reach consumers.

Speaker Change: With respect to performance-based advertising, yes, obviously they've seen success within our platform. With respect to brands,

Christopher Pavlovski: With respect to brands, we weren't aware of GARM a quarter ago. We're aware of GARM now based on the House Judiciary Committee and what they've exposed. So, we didn't realize the type of headwind we had with GARM, but now we do.

Christopher Pavlovski: So with respect to, okay, so if you're going to, if you're kind of going to lean into cloud more, I mean, you know, I imagine if you do some project with Macedonia, it wouldn't be insignificant. I mean, just like how should we think about like you want to take additional costs on to grow cloud, you know, relative to, you know, the focus of inflecting like, you know, the profitability on the advertising business.

Speaker Change: We weren't aware of GARM.

Speaker Change: a quarter ago. We're aware of GARM now based on the House Judiciary Committee and what they've exposed.

Christopher Pavlovski: And I think that our approach in trying to dismantle that and get ahead of that, I don't think it's sustainable for what corporations have been doing and what GARM has been doing by limiting their advertisers to go to a certain segment of the market. Now that X and Rumble have significant audiences, I think it's doing a disservice to those brands to not reach those markets, and I think they will eventually go towards them.

Speaker Change: So we didn't realize the type of headwind we had with GARM, but now we do. And I think that our approach in trying to dismantle that and get ahead of that, I don't think it's sustainable for what...

Speaker Change: What corporations have been doing and what Garm has been doing by kind of limiting their their advertisers to go to a certain segment of the of the market now that you know

Christopher Pavlovski: Can you repeat that question? Yeah, I mean, I guess, you know, how much are you willing to like sacrifice margin to kind of grow the cloud business? So I mean, if you're going to take a project with a government like Macedonia, which I have no idea how big or small that government is, but you know, does something like that require like upfront cost that way on margins while you ramp the cloud business?

Speaker Change: X and Rumble have significant audiences.

Speaker Change: I think it's doing a disservice to those brands to not reach those markets, and I think they will eventually go towards them. I don't know what the timing is going to be on that, especially with what has happened with GARM, but I can certainly say that them dismantling GARM two days after we filed our lawsuit was a lot faster than I anticipated them dismantling GARM. So we see that as a win, and we see that as moving very fast.

Christopher Pavlovski: I don't know what the timing is going to be on that, especially with what has happened with GARM, but I can certainly say that them dismantling GARM two days after we filed our lawsuit was a lot faster than I anticipated them dismantling GARM. So, we see that as a win, and we see that as moving very fast, but there's no telling when the actual large brands are going to make that turn, but we're hopeful that it will happen.

Christopher Pavlovski: So with, you know, without knowing the exact details of it yet, I couldn't answer that question, but at this point right now, we've invested quite a significant amount into our cloud and we have a lot of availability that we are looking to sell. So our goal at our company right now is to sell that availability as fast as possible to bring in the revenue into the business. Okay, I'll jump back in the queue. Thanks. Thank you.

Speaker Change: But there's no telling when the actual large brands are going to make that turn. But we're hopeful that it will happen. I just cannot see this as being sustainable for the long term. So I do think it will happen. And when it does, I think it will be a very big step function and be very material to this business.

Christopher Pavlovski: I just cannot see this as being sustainable for the long term. So, I do think it will happen, and when it does, I think it will be a very big step function. It'll be very material to this business. Thanks. And if I can just squeeze one last one on with former President Trump, you know, doing the interview with Elon tonight on X.

Christopher Pavlovski: And I think, you know, that I believe the way that his agreement with True Social Works allows him to use his personal account to post. I'm just curious what your, if you guys have any views that you'd want to share in terms of how you think that plays out in terms of more content showing back up directly post, by Trump on the back of the interview. For Rumble, events like these are very good.

Unknown Attendee: Ladies and gentlemen, a reminder, if you wish to ask a question, please, press star and one.

Speaker Change: Thanks and if I can just squeeze one last one on with former President Trump you know doing the interview with Elon tonight on X and I think

Scott Devitt: Our next question is from the line of Scott Divitt with wet bush securities. Please go ahead. Hi, thank you. I had two questions.

Speaker Change: I believe the way that his agreement with True Social Works allows him to use his personal account to post. I'm just curious if you guys have any views that you'd want to share in terms of how you think.

Scott Devitt: First on the cloud business, I was wondering if you could just talk, you know, a bit more about the dolphins deal like who you displaced and why they opted to go with the Rumble cloud that would be helpful as you brought out the offering, getting the understanding of the uniqueness of it relative to peers. And then, and then second. On the. The core advertising business, you know, there's a, you know, perception or opportunity, I guess, for you to broaden out the offering and that's been happening over time in terms of the types of content that's viewed every, you know, political cycle, you get a big take and viewership that you can, you know, then keep users from until the next cycle.

Speaker Change: That plays out in terms of more content showing back up directly posted By Trump on the back of the interview tonight

Christopher Pavlovski: They create a lot of traffic around Rumble. A lot of our creators go online, they stream, they commentate about it. It ends up being a very, very good event for Rumble, just like the first debate was. We broke records there according to stream charts. And just like the GOP convention, these type of things are very positive for Rumble, so any type of major events in the political space, regardless of where it happens, are very big for Rumble and very important to Rumble. So I see that as a very positive thing, and I'm looking forward to watching that later tonight. Thank you. Our next question is from the line of Jason Helfstein with Oppenheimer and Company. Please go ahead.

Speaker Change: For Rumble, events like these are very good. They create a lot of traffic around Rumble. A lot of our creators go online, they stream, they commentate about it. It ends up being a very, very good event for Rumble, just like the first debate was.

Speaker Change: We broke records there according to stream charts.

Speaker Change: and just like the GOP convention, these type of things are very positive for Rumble. So any type of major events in the political space, regardless of where it happens, are very big for Rumble and very important to Rumble. So I see that as a very positive thing, and I'm looking forward to watching that later tonight.

Scott Devitt: Some curious, like, as we enter this cycle that we're in the middle of now. How you're thinking about the diversification of content, how important that that is, as well as, you know, the ability to diversify the advertiser base over time to continue to grow the revenue. Thank you.

Speaker Change: Same here. Thank you.

Speaker Change: Thank you.

Speaker Change: Our next question is from the line of Jason Helstein with Oppenheimer and Company. Please go ahead.

Christopher Pavlovski: Hey, this is Chris. Thanks for joining at with respect to the second question. We've put a lot of effort in diversifying the content, specifically in the sports category by bringing in a lot of sports leagues, power slap, a night for rally cross racing, SLS. And by doing that, we were hoping that that would bring in the brand advertisers for us. So that's kind of one of the strategies that we deployed in order to in order to diversify.

Jason Helfstein: Thanks, just two follow-ups. The Outlook for Minimum Guarantee, https://www.thevenusproject.com of that into next year. I guess the question is like, how confident are you that in basically.., you'll be able to support content cost next year with, you know, with the revenue share as opposed to minimum guarantee, some of these delays with, again, GAR. Impact, and Rack.

Jason Helstein: Thanks, just two follow-ups. So the outlook for minimum guarantees is pretty consistent with prior disclosure and kind of consistent with what we thought about into next year.

Jason Helstein: I guess the question is, how confident are you that you'll be able to support content growth next year?

Speaker Change: with the revenue share as opposed to minimum guarantees, I guess, does some of these delays with, again, GARM and the impact on RAC, does some of that...

Jason Helfstein: I want to, does some of that, you know, put more pressure, you know, on you next year to perhaps extend or.., do minimum guarantee. Unknown Attendee, Brandon Alexandroff, Christopher Pavlovski, Matt Kohrs, Rumble, positive, being naked. Does that show up now in the new definition? monetizable. Audience monetization or that? [inaudible] I'll let Brandon ask, answer the second part. Yeah, yeah.

Christopher Pavlovski: And with respect to the audiences, we have seen, like, very good traction on the audience side with respect to the sports leagues kind of going into different areas. And we saw that a lot in the previous, I think it was in late of 2023. And that helped us a lot on the user side. And with respect to the dolphins, we've been able to capture a part of their business. We'll be offering a portion of their infrastructure services.

Speaker Change: you know, put more pressure, you know, on you next year to perhaps extend or.

Speaker Change: do minimum guarantees. So some color there. And then just a clarification question, so

Speaker Change: with some of the initiatives around like the products, I guess you can call it the 1775 coffee, you know, positive, be naked. Does that show up now in the new definition of the monetizable audience monetization or is that another? Thanks.

Christopher Pavlovski: We'll be taking over. I don't know exactly who that displaced or if it displaced anybody, but our goal there was just trying to get into the door and have a partnership with them and be able to bring in their name and using our cloud services. And we executed on that. And for me, it's a pretty exciting step because it shows that, you know, although we're onboarding customers like public square and Trump media and technology group and growing with them, we're now kind of hitting into the mainstream on the cloud side where we have the dolphins that we'll be using our infrastructure as well.

Brandon Alexandroff: So the answer is yes. So audience monetization is any revenue that we're generating as a result of our users, right? So that's advertising products such as what you're saying, subscriptions, licensing, pay-per-view, tipping, and platform fees. So yes, that would be included in ARPU.

Speaker Change: I'll let Brandon answer the second part.

Brandon Alexandroff: Yeah, yeah. So the answer is yes.

Brandon Alexandroff: audience monetization is any revenue that we're generating as a result of our users right so that's advertising products such as what you're saying subscriptions licensing pay-per-view tipping and end platform fees so yes that would be included in ARPU

Brandon Alexandroff: And with respect to the MGs, we think that we've built a really good mousetrap going into next year with the way we're going to monetize audiences, not just programmatic advertising, not just subscriptions like with their local communities, but also the effect of live streaming and rack and studio ads going in there as creator sponsorships. So we do think that the mousetrap is there for us to be able to retain this type of content, retain a lot of this content.

Speaker Change: And with respect to the MG's, we think that we've built a really good mousetrap going into next year with the way we're going to monetize audiences, not just...

Christopher Pavlovski: So this was a very big win internally for us. And as it really, thank you for that as it just to follow up on the content advertiser question. Are you starting to get indications that advertisers are becoming more comfortable with the platform as the content is diversifying? I mean, obviously, on a sequential basis, the business is growing. And, you know, I'm just curious if you're starting to see any kind of step function change and advertiser comfort in using the platform to reach consumers.

Speaker Change: programmatic advertising, not just subscriptions like with their local communities.

Speaker Change: but also the effect of live streaming and rack and studio ads going in there as creator sponsorships.

Speaker Change: So, we do think that...

Speaker Change: The mousetrap is there for us to be able to retain this type of content, retain a lot of this content.

Brandon Alexandroff: And we've seen, for example, some of these deals kind of expire already, and it has retained, like Academics is a perfect example of someone that continues to stream on the platform post a deal. And we think that that'll happen for various other creators as well. But when it comes to doing extensions with MGs and doing more MGs, we're only going to do it going forward if there's a positive ROI, and it makes a lot of economic sense for us. We're not going to be doing that if it does not. And then just to follow up, Brandon, with the product deals, do those get booked for revenue? Is that gross or net? So is it like...

Speaker Change: and we've seen, for example, some of these deals kind of...

Speaker Change: Co- 一向的理念活動 and we think that will happen for various other creator's, as well. ★★ sobbirds Coordinator-1 & Director-1 Epstire Applicants and Editor and Producer Netflix

Christopher Pavlovski: With respect to performance-based advertising, yes, obviously they've seen success within our platform. With respect to brands, we weren't aware of Garm, a quarter ago, we're aware of Garm now based on the House Judiciary Committee and what they've exposed. We didn't realize the type of headwind we had with Garm, but now we do, and I think that our approach in trying to dismantle that and get ahead of that, I don't think it's sustainable for what corporations have been doing and what Garm has been doing by kind of limiting their advertisers to go to a certain segment of the market.

Speaker Change: When it comes to doing extensions with MGs and doing more MGs, we're only going to do it going forward if there's a positive ROI and it makes a lot of economic sense for us. We're not going to be doing that if it does not.

Speaker Change: And then just to follow up, Brandon, with the product deals, do those get booked for revenue? Is that gross or net?

Unknown Attendee: Unknown Attendee, Brandon Alexandroff, Christopher Pavlovski, Matt Kohrs, Rumble, Yeah, it depends on the partnerships that we have with the brand. So at the moment, it's all being booked at net based on what our cut is of that. If we start selling our own product, for example, we would book that as gross.

Speaker Change: https://www.youtube.com

Speaker Change: There's like cogs that come out.

Speaker Change: Yeah, it depends on the partnerships that we have with the brands. So at the moment, it's all being booked at net based on what our cut is of that. If we start selling our own product, for example, we would book that as gross.

Christopher Pavlovski: Now that X and Rumble have significant audiences, I think it's doing a disservice to those brands to not reach those markets, and I think they will eventually go towards them. I don't know what the timing is going to be on that, especially with what has happened with Garm, but I can certainly say that them dismantling Garm two days after we filed our lawsuit was a lot faster than I anticipated them dismantling Garm, so that we see that as a win, and we see that as moving very fast, but there's no telling when the actual large brands are going to make that turn, but we're hopeful that it will happen.

Speaker Change: Okay, cool. Thank you. Appreciate it, guys.

Operator: Thank you. Ladies and gentlemen, this concludes our question and answer session and also concludes the conference of Rumble. Thank you for your participation. You may now disconnect your lines.

Speaker Change: Thank you.

Speaker Change: Ladies and gentlemen, this concludes our question and answer session and also concludes the conference of Rumble. Thank you for your participation. You may now disconnect your lines.

Operator: [music]....... [inaudible] D.C. complexes.

Christopher Pavlovski: I just cannot see this as being sustainable for the long term, so I do think it will happen, and when it does, I think it will be a very big step function and it'll be very material to this business.

Christopher Pavlovski: Thanks, and if I can just squeeze one last one on with former President Trump doing the interview with Elon tonight on X, and I think I believe the way that his agreement with three social works allows him to use his personal account to post, and I'm just curious if you guys have any views that you'd want to share in terms of how you think that plays out, in terms of more content showing back up directly posted by Trump on the back of the interview tonight. For rumble events like these are very good.

Speaker Change: UNESCO's World Heritage Site

Unknown Attendee: Unknown Attendee, Brandon Alexandroff, Christopher Pavlovski, Matt Kohrs, Rumble, [inaudible] Unknown Attendee, Brandon Alexandroff, Christopher Pavlovski, Matt Kohrs, Rumble Unknown Attendee, Brandon Alexandroff, Christopher Pavlovski, Matt Kohrs, Rumble Unknown Attendee, Brandon Alexandroff, Christopher Pavlovski, Matt Kohrs, Rumble Unknown Attendee, Brandon Alexandroff, Christopher Pavlovski, Matt Kohrs, Rumble Unknown Attendee, Brandon Alexandroff, Christopher Pavlovski, Matt Kohrs, Rumble Unknown Attendee, Brandon Alexandroff, Christopher Pavlovski, Matt Kohrs, Rumble Unknown Attendee, Brandon Alexandroff, Christopher Pavlovski, Matt Kohrs, Rumble, [music] Dr. Prada, Dr. Prada, Dr. Prada, Dr. Prada, I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry.

Christopher Pavlovski: They create a lot of traffic around rumble, a lot of our craters go online, they stream, they commentate about it, and ends up being a very, very good event for rumble. Just like the first debate was, we broke records there according to stream charts, and just like the GOP convention, these type of things are very positive for rumble, so any type of major events in the political space, regardless of where it happens, are very big for rumble and very important to rumble, so I see that as a very positive thing, and I look forward to watching that later tonight, right here, thank you.

Unknown Attendee: Thank you.

Speaker Change: [inaudible]

Jason Helfstein: Our next question is from the line of Jason Helstein, the Oppenheimer and Company, please go ahead. Thanks, it's too follow up, so the outlook for minimum guarantees is pretty consistent with prior disclosure and kind of consistent what we thought about in the next year, and I guess the question is, how confident are you that you'll be able to support content cars next year with the revenue share as opposed to minimum guarantees?

Speaker Change: [inaudible]

Jason Helfstein: I guess some of these delays with again, Garam and the impact on Rack the one. To some of that, put more pressure on you next year to perhaps extend or do minimum guarantees. So some color there and then just a clarification question. So with some of the initiatives around like the products I guess you can call the 1775 coffee, you know, positive. Beneget, does that show up now in the new definition of the monetizable audience monetization or is that in other?

Jason Helfstein: Thanks. I'll let Brandon ask the answer. For the second part, when? Yeah, so the answer is yes. So audience monetization is any revenue that we're generating as a result of our users, right? So that's advertising products, such as what you're saying, subscriptions, licensing, paper view, tipping and platform fees. So yes, that would be included in our booth. And with respect to the MGs, we think that we've built a really good mouse trap going into next year with the way we're going to monetize audiences, not just programmatic advertising, not just subscriptions like with their local communities, but also the effect of live streaming and Rack and Studio ads going in there as creator sponsorships.

Operator: [inaudible] Unknown Attendee, Brandon Alexandroff, Christopher Pavlovski, Matt Kohrs, Rumble Unknown Attendee, Brandon Alexandroff, Christopher Pavlovski, Matt Kohrs, Rumble Unknown Attendee, Brandon Alexandroff, Christopher Pavlovski, Matt Kohrs, Rumble, [music] Greetings, and welcome to the Rumble Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad.

Jason Helfstein: So we do think that the mouse trap is there for us to be able to retain this type of content, retain a lot of this content. And we've seen, for example, some of these deals kind of expire already. And it has retained like academics is a perfect example of someone that continues to stream on the platform post a deal. And we think that that'll happen for various other creators as well. But when it comes to doing extensions with MGs and doing more MGs, we're only going to do it going forward.

Speaker Change: Music Music Music Music Music Music Music Music Music Music

Shannon Devine: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Shannon Devine, Investor Relations. Please go ahead.

Jason Helfstein: If there's if there's a positive ROI and it makes a lot of economic sense for us, we're not we're not going to be doing that if it does not. And then just the following with the product deals to those get booked for revenue that gross or net so is it like your cut of it or is it like all the sales flow through and then. There's like cogs that come out. Yeah, it depends on the partnerships that we have with the brand.

Speaker Change: Music

Jason Helfstein: So at the moment, it's all being booked at net based on what our cut is of that. If we start selling our own product, for example, we would book that as gross. Okay. Cool. Thank you. Appreciate it. Thank you.

Unknown Attendee: Ladies and gentlemen, this concludes our question and answer session and also concludes the conference of rumble. Thank you for your participation. You may now disconnect your lines.

Speaker Change: Contact us today.

Speaker Change: Thank you very much for watching.

Christopher Pavlovski: With our shift in organizational focus to revenue, I previously committed to introducing average revenue per user or ARPU as a key business metric. Better Reflecting Management's Evolving Assessment of Our Business. This quarter we took that step and introduced ARPU. For the second quarter, ARPU was $0.37, representing growth of 19% versus $0.31 in the first quarter.

Speaker Change: Ladies and gentlemen, greetings and welcome to the Rumble Second Quarter 2024 Earnings Conference Call.

Speaker Change: At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation.

Speaker Change: If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad.

Christopher Pavlovski: Additionally, our 53 million MAUs this quarter represented our 10th consecutive quarter of MAUs over 40 million and growth over the first quarter of 2024. As you may have seen, it has been a very busy few weeks in the advertising world. A few weeks ago, an investigation by the House Judiciary Committee, Chairman Jim Jordan, revealed a troubling conspiracy centered around an initiative called the Global Alliance for Responsible Media, known as GARM.

Speaker Change: As a reminder, this conference is being recorded.

Speaker Change: It is now my pleasure to introduce your host, Shannon Devine, in Vessel Relations. Please go ahead.

Christopher Pavlovski: Under the guise of setting a brand safety standard to govern advertising purchase decisions, GARM effectively created an advertising cartel more powerful than most of the media buying agencies in the world. The so-called standards were in fact an agreement among competing advertisers and ad agencies not to advertise with sites like Rumble and X, which has clearly created an artificial headwind for our business. Last week, we filed an antitrust lawsuit alongside X, alleging that these actions are unlawful collusion that harms competition.

Shannon Devine: Thank you, Operator. I'm here today with Chris Pavlovski, Founder, Chairman, and CEO of Rumble, Brandon Alexandroff, the CFO, and Tyler Hughes, the COO.

Speaker Change: A press release detailing our second quarter 2024 results was released today and available on the Investor Relations section of our company website.

Christopher Pavlovski: As a result of this activity, I am very pleased to say that it was reported last Thursday, two days after we filed our lawsuit, that the World Federation of Advertisers said that it's suspending the operations of Garm. This is a very big step in the right direction, and it cannot be understated. That's not the only step in the right direction. Last week, a federal court ruled in favor of the Department of Justice in its antitrust lawsuit against Google.

Chris Pavlovski: Thank you, Shannon.

Chris Pavlovski: As indicated by our results, the second quarter is solid, and early signs in the third quarter are starting to get me very excited about both our video and cloud businesses.

Chris Pavlovski: The Rumble video platform is now at a stage where I believe our user interface and user experience are becoming comparable to YouTube. The tools we've built to monetize the platform are starting to work and accelerate.

Chris Pavlovski: Even with advertising boycotts and artificial headwinds, which I will explain more later, we were able to grow our users, ARPU, and revenue.

Chris Pavlovski: With our shift in organizational focus to revenue, I previously committed to introducing Average Revenue Per User, or ARPU, as a key business metric this year.

Chris Pavlovski: Better Reflecting Management's Evolving Assessment of Our Business.

Chris Pavlovski: This quarter, we took that step and introduced ARPU. For the second quarter, ARPU was $0.37, representing growth of 19% versus $0.31 in the first quarter.

Chris Pavlovski: Additionally, our 53 million MAUs this quarter represented our 10th consecutive quarter of MAUs over 40 million and growth over the first quarter of 2024.

Speaker Change: As you may have seen, it has been a very busy few weeks in the advertising world. A few weeks ago, an investigation by the House Judiciary Committee, Chairman Jim Jordan, revealed a troubling conspiracy centered around an initiative called the Global Alliance for Responsible Media, known as GARM.

Speaker Change: The so-called standards were, in fact, an agreement among competing advertisers and ad agencies not to advertise with sites like Rumble and X.

Speaker Change: which has clearly created an artificial headwind for our business.

Speaker Change: Last week, we filed an antitrust lawsuit alongside X, alleging that these actions are unlawful collusion that harms competition.

Speaker Change: This is a very big step in the right direction and it cannot be understated.

Speaker Change: That's not the only step in the right direction. Last week, a federal court ruled in favor of the Department of Justice in its antitrust lawsuit against Google.

Christopher Pavlovski: Everyone has known it for years. But now a court has finally ruled that Google is a monopolist who has harmed competition. This decision bodes well for our two antitrust lawsuits against Google, both of which build on DOJ's work. If I can be candid for a moment, because of Garmin activists, attracting brand advertisers has been more difficult than anticipated, which can negatively affect Arpoo's rate of growth. The fact that we have been put in this position makes me sick to my stomach.

Speaker Change: Everyone has known it for years, but now a court has finally ruled that Google is a monopolist who has harmed competition. This decision bodes well for our two antitrust lawsuits against Google, both of which build on DOJ's work.

Speaker Change: If I can be candid for a moment...

Speaker Change: Because of Garmin activists, attracting brand advertisers has been more difficult than anticipated, which can negatively affect ARPU's rate of growth.

Christopher Pavlovski: Our users deserve better, our creators deserve better, frankly, we all deserve better as a society. There are millions of creators out there who have a voice, valued opinion, and want to be heard. Other companies, including News Corp, have also disclosed that they have been harmed by Garmin, and the existence of these coalitions of bad actors trying to put an artificial and sweeping stranglehold on the economics of advertising should concern everyone.

Christopher Pavlovski: Despite the headwind with brands, we continue to make strides with direct-response advertisers, and we were still able to grow revenue in ARPU in the second quarter. I'd like to walk you through an example which highlights how advertisers have leveraged the full capabilities set across Rumble Advertising Center, known as RAC, in our Creator Sponsorship, Sticker Mule, a global e-commerce business focused on customized products, has tripled its investment into Rumble advertising. This partnership started with a six-figure test campaign with our sports properties to drive awareness and sample our premium creator sponsorship to test performance. After a successful test campaign, in fact, one creator converted so well that the Sticker Mule website went down.

Speaker Change #100: Despite the headwind with brands, we continue to make strides with direct response advertisers and we were still able to grow revenue in ARPU in the second quarter.

Speaker Change #101: I'd like to walk you through an example which highlights how advertisers have leveraged the full capabilities set across Rumble Advertising Center, known as RAC, and our Creator Sponsorships.

Unknown Attendee: , ladies and gentlemen greetings and welcome to the Rumble 2nd quarter of 2024 awnings conference call. At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference please press star and zero on your telephone keypad. As a reminder this conference is being recorded. It is now my pleasure to introduce your host Shannon Devine in Vessel Relations.

Speaker Change #101: Sticker Mule, a global e-commerce business focused on customized products, has tripled its investment into Rumble advertising. This partnership started with a six-figure test campaign with our sports properties to drive awareness.

Speaker Change #101: and Sample, our premium creator sponsorship to test performance. After a successful test campaign, in fact, one creator converted so well that the Sticker Mule website went down. We were able to expand our partnership to seven figures.

Christopher Pavlovski: We were able to expand our partnership to seven figures. Sticker Mule then doubled down on the creators who over-indexed on performance and built the drumbeat of awareness via rack, pre-roll, and display ads. The ability of our sales team to work with clients on a multi-format campaign via free roll, display, sports, and creator sponsorships gives us a unique advantage to bring a new value to advertisers. Additionally, the opportunity for advertisers to cast a wide net across a variety of creators and optimize based on performance is precisely the value that our new Rumble Studio monetization tools will bring as that product continues to scale.

Unknown Attendee: Please go ahead. Thank you operator. I'm here today with Chris Pavlovsky, founder, chairman and CEO of Rumble Brandon Alexandroff, the CFO and Tyler Hughes, the COO. A press release detailed in our second quarter of 2024 results was released today and available on the Vessel Relations section of our company website. Before we begin the formal presentation I would like to remind everyone that statements made on this call and webcast may include predictions estimates or other information that might be considered for looking.

Speaker Change #102: Sycamore then doubled down on the creators who over-indexed on performance and built the drumbeat of awareness via rack, free roll, and display ads.

Speaker Change #102: The ability of our sales team to work with clients on a multi-format campaign via pre-roll, display, sports, and creator sponsorships gives us a unique advantage to bring a new value to advertisers.

Speaker Change #102: Additionally, the opportunity for advertisers to cast a wide net across a variety of creators and optimize based on performance is precisely the value that our new Rumble Studio monetization tools will bring as that product continues to scale.

Unknown Attendee: All for looking statements are made only as of the date of this webcast and should be considered in conjunction with the cautionary statements in our earnings release and the risk factors included in our filings with the SEC. Future company updates will be available, the press release and company updates via the company's identified social media channels. I will now turn the call over to Rumble founder, chairman and CEO Chris Pavlovsky. Thank you Shannon.

Christopher Pavlovski: And to summarize, Rumble's revenue through RAC.., is growing with direct response advertisers and not yet with brands. If boycotts end, and brands start spending, we expect to see a material positive impact on revenue and our food growth. With respect to the election cycle, early indications are pointing, pointing towards much better engagement than we saw in 2022. According to StreamCharts, a third party measurement service, in July, Rumble saw a 34% increase in average live stream viewers month over month. Additionally, StreamCharts also reported that we set a record for concurrent US live stream viewers during the debate between President Biden and President Trump in late June.

Speaker Change #102: To summarize, Rumble's revenue through RAC

Speaker Change #102: is growing with direct response advertisers and not yet with brands. If boycotts end and brands start spending, we expect to see a material positive impact on revenue in ARPU growth.

Speaker Change #102: With respect to the election cycle, early indications are pointing towards much better engagement than we saw in 2022.

Unknown Attendee: As indicated by our results the second quarter is solid. In early signs in the third quarter are starting to get me very excited about both our video and cloud businesses. The Rumble video platform is now at a stage where I believe our user interface and user experience are becoming comparable to YouTube. The tools we've built to monetize the platform are starting to work and accelerate even with advertising boycotts in artificial headwinds which I will explain it more later we were able to grow our users RPU and revenue.

Speaker Change #102: According to Stream Charts

Speaker Change #103: a third-party measurement service, in July Rumble saw a 34% increase in average live stream viewers month over month. Additionally, StreamCharts also reported that we set a record for concurrent U.S. live stream viewers during the debate between President Biden and President Trump in late June.

Speaker Change #103: Due to the strong engagement in July, we have seen an early but promising adoption of Rumble Premium, a subscription service that removes ads on videos.

Unknown Attendee: With our shift in organizational focus to revenue I previously committed to introducing average revenue per user or RPU as a key business metric this year. Federal Reflecting Management Management's Evolving Assessment of Our Business. This quarter, we took that step and introduced ARPU for the second quarter. ARPU was 37 cents representing growth of 19% versus 31 cents in the first quarter. Additionally, our 53 million MAUs this quarter represented our 10th consecutive quarter of MAUs over 40 million in growth over the first quarter of 2024.

Speaker Change #104: Turning to cloud, the excitement for RumbleCloud is starting to take hold. Although it is much different and has a much longer sales cycle than Rumble's videos business, the pipeline and initial success of landing customers have our teams very energized.

Speaker Change #104: Initially, the expectation was that Rumble would land customers primarily in the parallel economy segment.

Christopher Pavlovski: In the second quarter, we also announced that Public Score will migrate to our platform along with others who share the same mission as Rumble. Most notably, though, we recently landed a different kind of customer, one that wasn't driven towards us by our mission, but instead by our capabilities and economics. Months ago, we announced that one of the premier NFL franchises, the Miami Dolphins, will migrate to the Rumble cloud. This is evidence that the Rumble cloud is more than just a valued asset of the parallel economy, and there is a broader desire by major businesses to use our service. It doesn't end there.

Speaker Change #104: and we have with customers like Trump Media and Technology Group.

Speaker Change #104: In the second quarter, we also announced that Public Scorer will migrate to our platform along with others who share the same mission as Rumble. Most notably though, we recently landed a different kind of customer.

Speaker Change #104: One that wasn't driven towards us by our mission, but instead by our capabilities and economics.

Unknown Attendee: As you may have seen, it has been a very busy few weeks in the advertising world. A few weeks ago, an investigation by the House Judiciary Committee, Chairman Jim Jordan revealed a troubling conspiracy centered around an initiative called the Global Alliance for Responsible Media, known as GARM. Under the guise of setting a brand safety standard to govern advertising purchase decisions, GARM effectively created an advertising cartel more powerful than most of the media buying agencies in the world.

Speaker Change #104: Moments ago, we announced that one of the premier NFL franchises, the Miami Dolphins, will migrate to the Rumble Cloud. This is evidence that the Rumble Cloud is more than just a valued asset of the parallel economy and there is a broader desire by major businesses to use our service.

Unknown Attendee: The so-called standards were in fact in agreement among competing advertisers and ad agencies not to advertise with sites like Rumble and X, which has clearly created an artificial headwind for our business. Last week, we filed an antitrust lawsuit alongside X, alleging that these actions are unlawful collusion that harms competition. As a result of this activity, I am very pleased to say that it was reported last Thursday, two days after we filed our lawsuit, that the world federation of advertisers said that it's suspending the operations of GARM.

Christopher Pavlovski: We haven't been shy about our ambition to go after large customers for our cloud, which now includes governments. You may have heard of Google Cloud's recent announcement with the El Salvadorian government for a $500 million strategic partnership to modernize the country's IT services. Recently, I had the pleasure of meeting multiple times with the newly elected Prime Minister of Macedonia, where we discussed the possibility of Rumble Cloud's direct involvement in their country's digital transformation efforts, similar to what was done in El Salvador.

Speaker Change #105: It doesn't end there.

Speaker Change #105: We haven't been shy about our ambition to go after large customers for our cloud.

Speaker Change #106: which now includes governments. You may have heard of Google Cloud's recent announcement with the El Salvadoran government for a $500 million strategic partnership to modernize the country's IT services.

Speaker Change #107: Recently, I had the pleasure of meeting multiple times with the newly elected Prime Minister of Macedonia, where we discussed the possibility of RumbleCloud's direct involvement in their country's digital transformation efforts.

Speaker Change #108: similar to what was done in El Salvador. To our delight, Prime Minister Mikoski recently publicly shared his enthusiasm for the possibility of a partnership with Rumble, an exciting sign for all of us at the company.

Speaker Change #109: As I started this call, our second quarter was solid, but the excitement of this business lays ahead. On cloud, we are now partnered with the Miami Dolphins.

Unknown Attendee: This is a very big step in the right direction and it cannot be understated. That's not the only step in the right direction. Last week, a federal court ruled in favor of the Department of Justice in its antitrust lawsuit against Google. Everyone has known it for years, but now a court has finally ruled that Google is a monopolist who has harmed competition. This decision bodes well for our two antitrust lawsuits against Google, both of which build on DOJ's work.

Brandon Alexandroff: I'll now take you through our second quarter financials at a very high level before turning the call over to the operator for Q&A.

Unknown Attendee: If I can be candid for a moment, because of GARM and activists, attracting brand advertisers has been more difficult than anticipated, which can negatively affect our whose rate of growth. The fact that we have been put in this position makes me sick to my stomach. Our users deserve better, our creators deserve better. Frankly, we all deserve better as a society. There are millions of creators out there who have a voice, a valued opinion, and want to be heard.

Brandon Alexandroff: For the second quarter of 2024, we reported revenues of 22.5 million dollars, a sequential increase of 27% compared to the 17.7 million we delivered in the first quarter due to increases in sponsorship revenue, subscriptions, and other initiatives.

Unknown Attendee: Other companies, including NewsCorp, have also disclosed that they have been harmed by GARM. And the existence of these coalitions of bad actors trying to put an artificial in sweeping stranglehold on the economics of advertising should concern everyone. Despite the headwind with brands, we continue to make strides with direct response advertisers, and we were still able to grow revenue in our poo in the second quarter. I'd like to walk you through an example, which highlights how advertisers have leveraged the full capability set across Rumble Advertising Center known as RAC in our creator's sponsorships.

Speaker Change #110: Audience monetization includes revenue that we generate from our user base, such as advertising on Rumble, subscription, licensing, pay-per-view, tipping, and platform fees.

Speaker Change #110: Other initiatives revenue includes monetization outside of our user base and currently includes rack for publishers and cloud.

Unknown Attendee: Sticker Mule, a global e-commerce business focused on customized products, has tripled its investment into Rumble Advertising. This partnership started with a six-figure test campaign with our sports properties to drive awareness, and sample our premium creator's sponsorship to test performance. After a successful test campaign, in fact, one creator converted so well that the Sticker Mule website went down. We were able to expand our partnership to seven figures. Sticker Mule then doubled down on the creators who over-indexed on performance and built the drumbeat of awareness via RAC free roll and display ads.

Speaker Change #110: Quarterly ARPU is calculated as quarterly audience monetization revenue divided by MAUs for the relevant quarter and does not include other initiatives revenue.

Speaker Change #110: For the second quarter, we reported ARPU of 37 cents, compared to 31 cents in the first quarter of 2024.

Speaker Change #110: Today, we believe ARPU is a better reflection of our management team's focus. As a result, this will be the last quarter that we will be reporting estimated minutes watched per month and hours of uploaded video per day.

Unknown Attendee: The ability of our sales team to work with clients on a multi-format campaign via free roll, display, sports, and creator's sponsorships gives us a unique advantage to bring a new value to advertisers. Additionally, the opportunity for advertisers to cast a wide net across a variety of creators in optimized based on performance is precisely the value that our new Rumble Studio monetization tools will bring as that product continues to scale. To summarize, Rumble's revenue through Rack is growing with direct response advertisers and not yet with brands.

Speaker Change #110: It's important to note that during the early stages of monetization we may still experience a lag in monetization during periods where MAUs spike from one-off or cyclical events such as an election which may also contribute to volatility in ARPU on a quarterly basis.

Speaker Change #110: Cost of services decreased to $35.7 million for the quarter, compared to $40.8 million in the second quarter of 2023, due to a decrease in programming and content costs of $5.6 million, offset by an increase in other costs of services of $0.4 million.

Brandon Alexandroff: Moving to our cash position. We ended the second quarter of 2024 with $154.2 million in cash, cash equivalents, and marketable securities, compared to $219.5 million as of December 31, 2023. And, as of June 30, 2024, our programming and content agreements had a minimum contractual cash commitment of $55 million, down from $76 million in the first quarter, and $106 million as of December 31, 2023. Our cash position remains healthy, and we continue to maintain sufficient cash to meet our ongoing capital needs.

Unknown Attendee: If boycotts end and brands start spending, we expect to see a material positive impact on revenue in our food growth. With respect to the election cycle, early indications are pointing towards much better engagement than we saw in 2022. According to Streamcharts, a third-party measurement service in July rumble saw a 34% increase in average livestream viewers month over month. Additionally, Streamcharts also reported that we set a record for concurrent US livestream viewers during the debate between President Biden and President Trump in late June.

Speaker Change #110: Moving to our cash position.

Speaker Change #110: We ended the second quarter of 2024 with $154.2 million in cash, cash equivalents, and marketable securities.

Speaker Change #110: compared to $219.5 million as of December 31, 2023.

Speaker Change #110: And, as of June 30, 2024, our programming and content agreements had a minimum contractual cash commitment of $55 million, down from $76 million in the first quarter and $106 million as of December 31, 2023.

Speaker Change #110: Our cash position remains healthy, and we continue to maintain sufficient cash to meet our ongoing capital needs.

Unknown Attendee: Due to the strong engagement in July, we have seen an early but promising adoption of Rumble Premium, a subscription service that removes ads on videos. Turning to cloud, the excitement for Rumble Cloud is starting to take hold. Although it is much different and has a much longer sales cycle than Rumble's videos business, the pipeline and initial success of landing customers have our teams very energized. Initially, the expectation was that Rumble would land customers primarily in the parallel economy segment, and we have with customers like Trump Media and Technology Group.

Speaker Change #110: Before I conclude, our focus on monetization is front and center, and as Chris discussed, we have experienced some headwinds associated with Garm as it relates to our advertising business.

Speaker Change #111: Despite the headwinds with Garm, if our sponsorship agreements with advertisers continue to perform as expected, and political advertising ramps up as the election cycle intensifies, we expect our revenues to continue to increase sequentially throughout 2024.

Speaker Change #112: Since inception, we have always operated like a bootstrap business, and this mentality remains part of our culture. As we ramp up monetization and maintain discipline around our cost structure, we continue to expect to move materially towards adjusted EBITDA break-even in 2025.

Brandon Alexandroff: As we ramp up monetization and maintain discipline around our cost structure, we continue to expect to move materially towards adjusted EBITDA break-even in 2025. Before I turn the call over to the operator, I invite you all to join Chris this evening at 6.30pm Eastern Time for an exclusive post-earnings interview with Matt Kohrs to be streamed live on the Matt Kohrs Rumble channel. That concludes my prepared remarks. I will now turn the call over to the operator to open up the line for questions.

Unknown Attendee: In the second quarter, we also announced that public scroll will migrate to our platform along with others who share the same mission as Rumble. Most notably though, we recently landed a different kind of customer. One that wasn't driven towards us by our mission, but instead by our capabilities and economics. Moments ago, we announced that one of the premier NFL franchises, the Miami Dolphins, will migrate to the Rumble Cloud. This is evidence that the Rumble Cloud is more than just the valued asset of the parallel economy, and there is a broader desire by major businesses to use our service.

Speaker Change #113: Before I turn the call over to the operator, I invite you all to join Chris this evening at 6.30 p.m. Eastern Time for an exclusive post-earnings interview with Matt Kors to be streamed live on the Matt Kors Rumble channel.

Speaker Change #114: That concludes my prepared remarks. I will now turn the call over to the operator to open up the line for questions.

Brandon Alexandroff: Thank you. Ladies and gentlemen, we will now be conducting a question and answer session. If you would like to ask a question, please press star and 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

Unknown Attendee: It doesn't end there. We haven't been shy about our ambition to go after large customers for our cloud, which now includes governments. You may have heard of Google Cloud's recent announcement with the El Salvadorian government for a $500 million strategic partnership to modernize the country's IT services. Recently, I had the pleasure of meeting multiple times with the newly elected Prime Minister of Macedonia, where we discussed the possibility of Rumble Cloud's direct involvement in their country's digital transformation efforts, similar to what was done in El Salvador.

Speaker Change #115: Thank you.

Speaker Change #116: Ladies and gentlemen, we will now be conducting a question and answer session.

Speaker Change #117: If you would like to ask a question, please press star and 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

Speaker Change #118: You may press star and 2 if you'd like to remove your question from the queue.

Speaker Change #118: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Operator: You may press star and 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Ladies and gentlemen, we will wait for a moment while we poll for questions. Our first question is from the line of Jason Helfstein with Oppenheimer and Company. Please go ahead. Hi everybody. I'll ask a few and I'll get back in the queue. So the revenue improvement that we saw, 4.7 million sequential. Also came in about a two and a half, better than we were expecting.

Speaker Change #119: Ladies and gentlemen, we will wait for a moment while we poll for questions.

Jason Helfstein: How much of that was, just given all the stuff you talked about, how much of that was rack versus... I guess, NotRack, and then.., from the Sequential family. And then I guess within it, are you trying to say that like performance was better of a brand was worse? I'll do one at a time, just maybe unpack that a bit, within the 4.7 sequential increase, like how much rack, how much not rack. Collaborative. Hi, Jason. This is Chris.

Speaker Change #119: [inaudible]

Unknown Attendee: To our delight, Prime Minister Mikoski recently publicly shared his enthusiasm for the possibility of a partnership with Rumble, an exciting sign for all of us at the company. As I started this call, our second quarter was solid, but the excitement of this business lays ahead. On Cloud, we are now partnered with the Miami Dolphins, and on Rumble video, user engagement is off to a flying start for the second half of 2024.

Speaker Change #119: Our first question is from the line of Jason Helfstein with Oppenheimer and Company. Please go ahead.

Jason Helfstein: Hi everybody, I'll ask a few and I'll get back in the queue. So the revenue improvement that we saw

Speaker Change #121: It was like 4.7 million sequentially, also came in about 2.5 million, better than we were expecting. How much of that was, just given all the stuff you talked about, how much of that was RAC versus...

Unknown Attendee: Without question, we are on track for our Super Bowl. With that, I'll turn the call over to our CFO, Brandon, Alexandra. Thanks, Chris. I'll now take you through our second quarter financials at a very high level before turning the call over to the operator for Q&A. For the second quarter of 2024, we reported revenues of $22.5 million. A sequential increase of 27% compared to the 17.7 million we delivered in the first quarter due to increases in sponsorship revenue, subscriptions, and other initiatives.

Speaker Change #122: I guess, not RAC, and then from a sequential standpoint. And then, I guess, within it, are you trying to say that, like, performance was better but brand was worse? I just...

Speaker Change #123: I'll do one at a time, just maybe unpack that a bit. So within the 4.7 sequential increase, like how much RAC, how much not RAC, and just elaborate a bit more.

Unknown Attendee: As Chris mentioned, with an increased focus on revenue, you will see in our Q2 financial statements that we moved to disaggregate our revenue into new subcategories. We adopted these two subcategories in order to facilitate the introduction of the ARPU metric. Previously, the two revenue types that we presented were advertising and other services in cloud. Starting in Q2, we disaggregated revenue into audience monetization and other initiatives. Audience monetization includes revenue that we generate from our user base, such as advertising on Rumble, subscription, licensing, pay-per-view, tipping, and platform fees.

Speaker Change #123: Hi Jason, this is Chris.

Speaker Change #124: With respect to the revenue increase, it's kind of like a tide of multiple different things. What we've seen on our end is...

Jason: obviously RAC contributed to that, Creator Sponsorships contributed to that. And one thing that's important to note is that we are in the middle of an effort of moving all the Creator Sponsorships into RAC either way, so that it would all be kind of coming out of RAC hopefully by the end of the year, if not early by next year. So that automation process that we've talked about many times in the past is in the process of us getting everything into RAC. But both RAC and that Creator Sponsorship portion are both contributing to that revenue increase here. It's kind of a rising tide.

Christopher Pavlovski: So that automation process that we've talked about many times in the past is in the process of us getting everything into RAC. But both RAC and that Creator Sponsorship portion are both contributing to that revenue increase here. It's kind of a rising tide. And then just tell me the size of sales and marketing was up like 3 million sequentially, talk about, and like what was in that. I need that one time. Unknown Attendee, Jason Helfstein, Matt Kohrs, Rumble, Unknown Attendee Yes, sir. I can grab that Jason.

Unknown Attendee: Other initiatives revenue includes monetization outside of our user base, and currently includes rack for publishers and cloud. Quarterly ARPU is calculated as Quarterly Audience monetization revenue divided by MAUs for the relevant quarter and does not include other initiatives revenue. For the second quarter, we reported ARPU of 37 cents compared to 31 cents in the first quarter of 2024. Today, we believe ARPU is a better reflection of our management team's focus. As a result, this will be the last quarter that we will be reporting estimated minutes watch per month and hours of uploaded video per day.

Speaker Change #126: Sales and marketing was up like 3 million sequentially, maybe just talk about, Brandon, what was in that? Was any of that one time?

Speaker Change #127: and does it just tie, you know, what does that tie to other revenue initiatives?

Speaker Change #128: So the sales and marketing expense was otherwise flat relative to recent quarters outside of that 3 million increase Will be a similar Advertising purchase on rumble by that media company over the coming quarters

Unknown Attendee: It's important to note that during the early stages of monetization, we may still experience a lag in monetization during periods where MAUs spike from one-off or cyclical events, such as an election, which may also contribute to volatility in ARPU on a quarterly basis. Cost of services decreased to 35.7 million for the quarter compared to 40.8 million in the second quarter of 2023, due to a decrease in programming and content costs of 5.6 million, offset by an increase in other costs of services of 0.4 million.

Speaker Change #129: So really like if we were just like to be intellectually honest about it or academic, that really would be more like cost of revenue.

Unknown Attendee: No, not specifically. Basically, you're reselling, You bought revenue and you're reselling it and there's some net impact. Obviously that cost roughly $3,000, monetize it for more than three mil, right? and I guess it's almost like there's like controversy. Hey Jason, I'll add a little more color to that.

Speaker Change #129: In a way.

Speaker Change #129: No, not specifically.

Unknown Attendee: Moving to our cash position, we ended the second quarter of 2024 with 154.2 million in cash equivalents and marketable securities compared to 219.5 million as of December 31, 2023. And, as of June 30, 2024, our programming and content agreements had a minimum contractual cash commitment of 55 million down from 76 million in the first quarter and 106 million as of December 31, 2023. Our cash position remains healthy and we continue to maintain sufficient cash to meet our ongoing capital needs.

Christopher Pavlovski: So this is with respect to us trying different new channels for advertising and in the previous quarter in Q2, we advertised on these new channels, such as radio stations, to get more brand awareness for Rumble. With respect to the company that we worked with there, what they're going to do in the future is that they're planning to purchase through advertising on Rumble and the coming quarters which hasn't happened yet. There's no revenue, there's no revenue impact in Q2 on that. Unknown Attendee You did a barter deal.

Speaker Change #129: Anyway...

Speaker Change #129: I mean, I guess it's almost like they're like...

Speaker Change #129: Hi Jason, I'll add a little more color to that. So, this is with respect to us...

Speaker Change #130: trying different new channels for advertising. And in the previous quarter in Q2, we advertised on these new channels, such as like radio stations to get more brand awareness for Rumble.

Speaker Change #131: with respect to the company that we worked with there, what they're going to do in the future is that they're planning to purchase, you know, through advertising on Rumble in the coming quarters, which hasn't happened yet. There's no revenue impact in Q2 on that.

Unknown Attendee: Before I conclude, our focus on monetization is front and center and as Chris discussed, we have experienced some headwinds associated with Garm as it relates to our advertising business. Despite the headwinds with Garm, if our sponsorship agreements with advertisers continue to perform as expected and political advertising ramps up as the election cycle intensifies, we expect our revenues to continue to increase sequentially throughout 2024. Since inception, we have always operated like a bootstrap business and this mentality remains part of our culture.

Speaker Change #132: So basically with a barter, you did a barter deal, you basically accept

Unknown Attendee: Okay. Thank you. Thank you, like you have to accrue that as, sales payment was there cash out the door or like this was a legitimate order and just the time. Unknown AttendeeCorrect. There's no cash out the door.

Speaker Change #133: like you have to accrue that as basically like a sales payment with their cash out the door or like this was a legitimate barter agreement and just the timing didn't like even out yet

Unknown Attendee: This was just a barter deal, and the timing on only one side is a, I have one more and then I'll get back in the queue. That, too. Okay, so if you're going to, if you're kind of going to lean into cloud more. Project with Matt [inaudible] Devitt again. Yeah. How should we think about, like, you want to take additional costs on to grow cloud? relative to, you know, the focus of inflection, profitability. I'm, Can you repeat that question?

Speaker Change #133: Correct, there's no cash out the door, this was just a barter deal and the timing on only one side has occurred.

Unknown Attendee: As we ramp up monetization and maintain discipline around our cost structure, we continue to expect to move materially towards adjusted EBITDA break even in 2025. Before I turn the call over to the operator, I invite you all to join Chris this evening at 6.30 p.m, eastern time for an exclusive post earnings interview with Matt Kohrs to be streamed live on the Matt Kohrs Rumble channel. That concludes my prepared remarks. I will now turn the call over to the operator to open up the line for questions.

Speaker Change #134: Okay, I have one more and then I'll get back in the queue. So...

Speaker Change #135: with respect to

Speaker Change #136: Okay, so if you're gonna if you're kind of going to lean into cloud more I mean, you know, I imagine if you do some project with Macedonia, I mean it wouldn't be insignificant. I mean, I just

Speaker Change #137: Like how should we think about like you want to take additional costs on to grow cloud? You know relative to you know the focus of inflecting like you know the profitability on the advertising business

Unknown Attendee: Thank you. Ladies and gentlemen, we will now be conducting a question and answer session. If you would like to ask a question, please press star and one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Unknown Attendee: Yeah, I mean, I guess, you know. How much are you willing to sacrifice margin to kind of grow the cloud? I mean, if you're going to take a project with a government like MAPS, does something like that require like upfront costs that way on margins while you ramp the cloud?

Speaker Change #138: Can you repeat that question? Yeah, I mean, I guess, you know...

Speaker Change #139: How much are you willing to sacrifice margin to grow the cloud business? If you're going to take a project with a government like Macedonia, which I have no idea how big or small that government is,

Unknown Attendee: Ladies and gentlemen, we will wait for a moment while we pull for questions. Our first question is from the line of Jason Helfstein with Open Himer and Company. Please go ahead. Hi everybody. I'll ask a few and I'll get back in the queue. So the revenue improvement that we saw, it was like 4.7 million sequentially, also came in about 2.5 million better than we were expecting. How much of that was given, all of the stuff you talked about, how much of that was rack versus, I guess, not rack and then from a sequential standpoint?

Speaker Change #140: Does something like that require like upfront costs that weigh on margins while you ramp the cloud business?

Unknown Attendee: So, without knowing the exact details of it yet, I couldn't answer that question, but at this point right now, we've invested quite a significant amount into our cloud and we have a lot of availability that we are looking to sell. So, our goal at our company right now is to sell that availability as fast as possible to bring in the revenue into the business. I'll jump back.

Speaker Change #141: So without knowing the exact details of it yet I couldn't answer that question but at this point right now we've invested quite a significant amount into our cloud and we have a lot of availability that we are looking to sell. So our goal at our company right now is to sell that availability as fast as possible to bring in the revenue into the business.

Unknown Attendee: And then I guess within it, are you trying to say that performance was better, but brand was worse? I'll do one at a time. Just maybe unpack that a little bit. So within the 4.7 sequential increase, how much rack, how much not rack and elaborate a bit more? Hi Jason, this is Chris. With respect to the revenue increase, it's kind of like a tide of multiple different things. What we've seen on our end is obviously rack contributed to that, creator sponsorships contributed to that.

Unknown Attendee: Ladies and gentlemen, a reminder, if you wish to ask a question, please press star and 1. Our next question is from the line of Scott Devitt with Wedbush Securities. Please go ahead.

Speaker Change #141: Okay, I'll jump back in the queue. Thanks

Speaker Change #142: Thank you. Ladies and gentlemen, a reminder, if you wish to ask a question, please press star and one.

Speaker Change #142: Our next question is from the line of Scott Divett with Wedbush Securities. Please go ahead.

Scott Devitt: I had two questions. First on the cloud business, I was wondering if you could just talk, a bit more about the Dolphins deal, like who you displace. And why they opted to go with RumbleCloud, that'd be helpful as you broaden out the offering, get an understanding of RumbleCloud, of the uniqueness of it relative to peers. And then, and then second, on the the core advertising business, there's a perception or opportunity, I guess, for you.

Scott Divett: I had two questions. First, on the cloud business, I was wondering if you could just talk

Scott Divett: more about the Dolphins deal, like who you displaced and why they opted to go with RumbleCloud, that'd be helpful as you broaden out the offering. Get an understanding of...

Unknown Attendee: And one thing that's important to note is that we're in the middle of an effort of moving all the creator sponsorships into rack either way, so that it would all be kind of coming out of rack hopefully by the end of the year, if not early by next year. So that automation process that we've talked about many times in the past is in the process of us getting everything into rack, but both rack and that creator sponsorship portion are both contributing to that revenue increase here.

Speaker Change #144: Of the uniqueness of it relative to peers and then and then second

Speaker Change #144: on the

Speaker Change #145: core advertising business, there's a perception or

Scott Devitt: Broaden out the offering and that's been happening. Over time, in terms of the types of content that's viewed every, you know, political cycle, you get a big take and viewership that you can, you know, then keep users from until the next cycle. So I'm curious, like, as we enter this cycle that we're in the middle of now, how you're thinking about the diversification of content, how important that that is, as well as, you know, the ability to diversify the advertiser base over time to continue to grow the revenue. Thank you. Hey, this is Chris.

Speaker Change #145: Broaden out the offering and that's been happening

Speaker Change #146: Over time in terms of the types of content that's viewed Every you know political cycle you get a big take in viewership that you can you know then keep

Speaker Change #146: users from until the next cycle. So I'm curious, like, as we enter this cycle that we're in the middle of now,

Speaker Change #147: how you're thinking about the diversification of content, how important that that is, as well as the ability to diversify the advertiser base over time to continue to grow the revenue. Thank you.

Unknown Attendee: It's kind of a rising tide. So sales and marketing was up like 3 million sequentially. Maybe just talk about brand and what was in that? Was any of that one time? What is that tie to other revenue issues? I can grab that Jason. So as we discussed it in the 10Q, we did a barter deal with a media company whereby we purchased approximately $3 million worth of advertising inventory from them during the second quarter.

Speaker Change #147: Hey this is Chris, thanks for joining. With respect to the second question, we've put a lot of effort in diversifying the content, specifically in the sports category by bringing in a lot of sports leagues, Power Slap, Nitro Rally, Cross Racing, SLS,

Speaker Change #148: And by doing that, we were hoping that that would bring in the brand advertisers for us. So that's kind of one of the strategies that we deployed.

Unknown Attendee: So the sales and marketing expense was otherwise flat relative to recent quarters outside of that 3 million increase will be a similar advertising purchase on rumble by that media company over the coming quarters. So really like it, we were just like to be intellectually honest about it or academic, that really would be more like cost of revenue. In a way. No, not specifically. Basically you're reselling, you bought revenue and you're reselling it and there's some net impact.

Speaker Change #148: in order to diversify. And with respect to the audiences, we have seen very good traction on the audience side with respect to those sports leagues kind of going into different areas. And we saw that a lot in the previous, I think it was in late of 2023.

Speaker Change #148: and...

Speaker Change #148: That's helped us a lot on the user side.

Speaker Change #149: With respect to the Dolphins, we've been able to capture a part of their business. We'll be offering a portion of their infrastructure services that we'll be taking over. I don't know exactly who that displaced or if it displaced anybody, but our goal there was just trying to get into the door and have a partnership with them and be able to bring in their name and using our cloud services, and we executed on that. For me, it's a pretty exciting step because it shows that

Unknown Attendee: So obviously that cost roughly three mill, you monetize it for more than three mill, right? I assume. And so anyway, I guess it's almost like there's like controversy. Hey Jason, I'll add a little more color to that. So this is with respect to us trying different new channels for advertising and in the previous quarter in Q2, we advertised on these new channels such as radio stations to get more brand awareness for Rumble.

Unknown Attendee: With respect to the company that we worked with there, what they're going to do in the future is that they're planning to purchase through advertising on Rumble and the coming quarters which hasn't happened yet. There's no revenue impact in Q2 on that. On that. You did a border deal, you basically accept, like you have to accrue that as basically like a sales payment. Was there cash out the door or like this was a legitimate border agreement and just the timing didn't like even out yet?

Speaker Change #149: Although we're onboarding customers like Public Square and Trump Media and Technology Group and growing with them, we're now kind of hitting into the mainstream on the cloud side where we have the dolphins that will be using our infrastructure as well. So this was a very big win internally for us.

Unknown Attendee: As it just to follow up on. Content Advertiser Question, are you starting to get indications that advertisers are becoming more comfortable with the platform as the content is diversifying. I mean, obviously, on a sequential basis, the business is growing. And, you know, I'm just curious if you're starting to see any kind of step function change in advertiser comfort in using the platform to reach consumers. With respect to performance-based advertising, yes, obviously they've seen success within our platform.

Speaker Change #150: Thank you for that. Just to follow up on the content advertiser question.

Speaker Change #150: Are you starting to get indications that advertisers are becoming?

Speaker Change #150: more comfortable with the platform as the content is diversifying. I mean obviously

Speaker Change #151: on a sequential basis, the business is growing.

Speaker Change #152: And, you know, I'm just curious if you're starting to see any kind of step function change in advertiser comfort in using the platform to reach consumers.

Unknown Attendee: Correct, there's no cash out the door. This was just the border deal and the timing on only one side has occurred. Okay. I have one more than I'll get back into Q2. So with respect to... Okay, so if you're kind of going to lean into cloud more, I mean, you know, I imagine if you do some project with Macedonia, it wouldn't be insignificant. I mean, how should we think about like you want to take additional costs on to grow cloud relative to the focus of inspecting like the profitability on the advertising business?

Speaker Change #153: With respect to performance-based advertising, yes, obviously they've seen success within our platform. With respect to brands,

Unknown Attendee: With respect to brands, we weren't aware of GARM a quarter ago. We're aware of GARM now based on the House Judiciary Committee and what they've exposed. So, we didn't realize the type of headwind we had with GARM, but now we do.

Speaker Change #154: We weren't aware of GARM.

Speaker Change #154: a quarter ago. We're aware of GARM now based on the House Judiciary Committee and what they've exposed.

Christopher Pavlovski: And I think that our approach to trying to dismantle that and get ahead of that, I don't think it's sustainable for what corporations have been doing and what GARM has been doing by limiting their advertisers to go to a certain segment of the market. Now that X and Rumble have significant audiences, I think it's doing a disservice to those brands to not reach those markets.

Speaker Change #154: So we didn't realize the type of headwind we had with GARM, but now we do. And I think that our approach in trying to dismantle that and get ahead of that, I don't think it's sustainable for what...

Speaker Change #154: What corporations have been doing and what Garm has been doing by kind of limiting their Their advertisers to go to a certain segment of the of the market now that you know

Unknown Attendee: Can you repeat that question? Yeah, I mean, I guess, you know, how much you willing to like sacrifice margin to kind of grow the cloud business? Okay, so I mean, if you're going to take a project with a government like Macedonia, which I have no idea how big a small that government is, but you know, does something like that require like upfront cost that weigh on margins while you ramp the cloud business?

Speaker Change #154: X and Rumble have significant audiences.

Speaker Change #155: I think it's doing a disservice to those brands to not reach those markets, and I think they will eventually go towards them. I don't know what the timing is going to be on that, especially with what has happened with GARM, but I can certainly say that them dismantling GARM two days after we filed our lawsuit was a lot faster than I anticipated them dismantling GARM. So we see that as a win, and we see that as moving very fast.

Unknown Attendee: So with, you know, without knowing the exact details of it yet, I couldn't answer that question, but at this point right now, we've invested quite a significant amount into our cloud and we have a lot of availability that we are looking to sell. So our goal at our company right now is to sell that availability as fast as possible to bring in the revenue into the business. Okay, I'll jump back in the queue.

Christopher Pavlovski: So, we see that as a win and we see that as moving very fast, but there's no telling when the actual large brands are going to make that turn. But we're hopeful that it will happen. I just cannot see this as being sustainable for the long term.

Speaker Change #155: but there's no telling when the actual large brands are going to make that turn, but we're hopeful that it will happen. I just cannot see this as being sustainable for the long term, so I do think it will happen, and when it does, I think it will be a very big step function and be very material to this business.

Christopher Pavlovski: So, I do think it will happen. And when it does, I think it will be a very big step function and be very material to this business. Thanks. And if I can just squeeze one last one on with former President Trump, you know, doing the interview with Elon tonight on X.

Unknown Attendee: Thank you. Ladies and gentlemen, a reminder, if you wish to ask a question, please press star and one. Thank you. Our next question is from the line of Scott Devitt with wet bush security. Please, go ahead. Alright, thank you. I had two questions. First on the cloud business, I was wondering if you could just talk, you know, a bit of more about the dolphins deal like who you displaced and why they opted to go with the rumble cloud that would be helpful as you brought out now, the offering, getting the understanding of the uniqueness of it relative to peers.

Speaker Change #156: Thanks and if I can just squeeze one last one on with former President Trump you know doing the interview with Elon tonight on X and I think

Speaker Change #157: I believe the way that his agreement with True Social Works allows him to use his personal account to post. I'm just curious if you guys have any views that you'd want to share in terms of how you think.

Speaker Change #157: That plays out in terms of more content showing back up directly posted by Trump on the back of the interview tonight.

Christopher Pavlovski: They create a lot of traffic around Rumble. A lot of our creators go online, they stream, they commentate about it. It ends up being a very, very good event for Rumble. Just like the first debate was, we broke records there according to stream charts. And just like the GOP convention, these type of things are very positive for Rumble. So any type of major events in the political space, regardless of where it happens, are very big for Rumble and very important to Rumble.

Speaker Change #158: For Rumble, events like these are very good. They create a lot of traffic around Rumble. A lot of our creators go online, they stream, they commentate about it. It ends up being a very, very good event for Rumble. Just like the first debate was, we broke records there according to stream charts.

Unknown Attendee: And then, and then second, on the core advertising business, you know, there's a, you know, perception or opportunity, I guess for you to broaden out the offering and that's been happening over time in terms of the types of content that's viewed every, you know, political cycle. You get a big take and viewership that you can, you know, then keep users from until the next cycle. Some curious like as we enter this cycle that we're in the middle of now, how you're thinking about the diversification of content, how important that that is, as well as, you know, the ability to diversify the advertiser base over time to continue to grow the revenue.

Speaker Change #158: and just like the GOP convention, these type of things are very positive for Rumble. So any type of major events in the political space, regardless of where it happens, are very big for Rumble and very important to Rumble. So I see that as a very positive thing, and I'm looking forward to watching that later tonight.

Jason Helfstein: So I see that as a very positive thing, and I'm looking forward to watching that later tonight. Thank you. Our next question is from the line of Jason Helfstein with Oppenheimer and Company. Please go ahead.

Speaker Change #159: Same here. Thank you.

Speaker Change #159: Thank you.

Speaker Change #160: Our next question is from the line of Jason Helfstein with Oppenheimer and Company. Please go ahead.

Unknown Attendee: Thank you. Hey, this is Chris. Thanks for joining. With respect to the second question, we've put a lot of effort in diversifying the content, specifically in the sports category by bringing in a lot of sports leagues, power slap, a night for rally cross racing, SLS. And by doing that, we were hoping that that would bring in the brand advertisers for us. So that's kind of one of the strategies that we deployed in order to, in order to diversify.

Jason Helfstein: Thanks, it's two follow-ups. The Outlook for Minimum Guarantee. We'll kick things in with prior disclosure, of that into next year. Thank you. You know, is there, I guess the question is like, how confident are you that, you know, basically, you'll be able to support content cause next year with, you know, with the revenue share as opposed to minimum guarantee, some of these delays with, again, GAR. Impact, and RAC. I want to, to some of that, you know, put more pressure, you know, on you next year to perhaps extend or... Unknown Attendee, Unknown Speaker, Unknown Speaker, Unknown Attendee, Unknown Speaker, positive, being naked.

Jason Helfstein: Thanks, just two follow-ups. So the outlook for minimum guarantees is pretty consistent with prior disclosure and kind of consistent with what we thought about into next year.

Unknown Attendee: Does that show up now in the new definition? monetizable, audience monetization or that. I'll let Brandon ask the answer the second part.

Jason Helfstein: I guess the question is, how confident are you that you'll be able to support content growth next year?

Speaker Change #161: with the revenue share, as opposed to minimum guarantees, I guess, does some of these delays with, again, GARM and the impact in RAC, does some of that...

Unknown Attendee: And with respect to the audience is the, we have seen like very good traction on the audience side with respect to those sports leagues kind of going into different areas. And we saw that a lot in the previous, I think it was in late of 2023. And that, that's helped us a lot on the user side. With respect to the, the dolphins, we, we've been able to capture a part of their business.

Speaker Change #162: you know, put more pressure, you know, on you next year to perhaps extend or.

Speaker Change #163: do minimum guarantees. So some color there. And then, just a clarification question, so...

Speaker Change #164: with some of the initiatives around like the products, I guess you can call it the 1775 coffee, you know, positive, be naked. Does that show up now in the new definition of the monetizable, audience monetization or is that in other? Thanks.

Unknown Attendee: We're, we'll be offering a portion of their infrastructure services. We'll be taking over. I don't know exactly who that, that displaced or if it displaced anybody. But we, our goal there was just trying to get, get into the door and, and have a partnership with them and be able to bring in, bring in their name and using our cloud services. And we executed on that. And for me, it's a, it's a pretty exciting step because it shows that, you know, although we're, we're onboarding customers like public square and Trump media and technology group and growing with them.

Brandon Alexandroff: Yeah, so the answer is yes. So audience monetization is any revenue that we're generating as a result of our users, right? So that's advertising products, such as what you're saying, subscriptions, licensing, pay-per-view, tipping, and platform fees. So yes, that would be included in ARPU. And with respect to the MGs, we think that we've built a really good mousetrap going into next year with the way we're going to monetize audiences, not just programmatic advertising, not just subscriptions like with their local communities, but also the effect of live streaming and rack and studio ads going in there as creator sponsorships.

Speaker Change #164: I'll let Brandon answer the second part.

Brandon Alexandroff: So we do think that the mousetrap is there for us to be able to retain this type of content, a lot of this content. And we've seen, for example, some of these deals kind of expire already and it has retained, like Academics is a perfect example of someone that continues to stream on the platform, post a deal. And we think that that'll happen for various other creators as well. But when it comes to doing extensions with MGs and doing more MGs, we're only going to do it going forward if there's a positive ROI and it makes a lot of economic sense for us. We're not going to be doing that if it does not.

Brandon Alexandroff: So yes, that would be included in ARPU.

Unknown Attendee: We're now kind of hitting into the mainstream on the cloud side where we have the dolphins that will be using our infrastructure as well. So this was a, this was a very big win internally for us. And as it, as it really, thank you for that, as it, just to follow up on the content advertiser question. Are you starting to get indications that advertisers are becoming more comfortable with the platform as the content is diversifying?

Brandon Alexandroff: And then just to follow up, Brandon, with the product deals, do those get booked for revenue? Is that gross or net? Unknown Attendee, Brandon Alexandroff, Christopher Pavlovski, Matt Kohrs, Rumble, Yeah, it depends on the partnerships that we have with the brand. So at the moment, it's all being booked at net based on what our cut is of that. If we start selling our own product, for example, we would book that as gross. Thank you.

Speaker Change #165: And with respect to the MGs, we think that we've built a really good mousetrap going into next year with the way we're going to monetize audiences, not just...

Speaker Change #165: programmatic advertising, not just subscriptions like with their local communities.

Speaker Change #165: but also the effect of live streaming and rack and studio ads going in there as creator sponsorships.

Speaker Change #165: So, we do think that...

Speaker Change #165: The mousetrap is there for us to be able to retain this type of content, retain a lot of this content.

Unknown Attendee: I mean, obviously on a sequential basis, the business is growing. And, you know, I'm just curious if, if you're starting to see any kind of step function change and advertiser comfort in using the platform to reach consumers. With respect to performance-based advertising, yes, obviously they've seen success within our platform. With respect to brands, we weren't aware of Garm a quarter ago, we're aware of Garm now based on the House Judiciary Committee and what they've exposed, so we didn't realize the type of headwind we had with Garm, but now we do, and I think that our approach in trying to dismantle that and get ahead of that, I don't think it's sustainable for what corporations have been doing and what Garm has been doing by kind of limiting their advertisers to go to a certain segment of the market.

Speaker Change #165: And, you know, we've seen, for example, some of these deals kind of...

Speaker Change #165: expire already and it has retained, like, Academics is a perfect example of someone that continues to stream on the platform post a deal and we think that that'll happen for for various other creators as well.

Speaker Change #166: When it comes to doing extensions with MGs and doing more MGs, we're only going to do it going forward if there's a positive ROI and it makes a lot of economic sense for us. We're not going to be doing that if it does not.

Speaker Change #167: And then just to follow up, Brandon, with the product deals, do those get booked for revenue? Is that gross or net?

Brandon Alexandroff: I don't know if that's your cut of it, or is it like all the cells flow through and then...

Brandon Alexandroff: There's like cogs that come out.

Brandon Alexandroff: Yeah it depends on the partnerships that we have with the brands. So at the moment it's all being booked at net based on what our cut is of that. If we start selling our own product for example we would book that as gross.

Unknown Attendee: Now that, you know, X and Rumble have significant audiences, I think it's doing a disservice to those brands to not reach those markets, and I think they will eventually go to towards them. I don't know what the timing is going to be on that, especially with what has happened with Garm, but I can certainly say that them dismantling Garm two days after we filed our lawsuit was a lot faster than I anticipated them dismantling Garm, so that we see that as a win, and we see that as moving very fast, but there's no telling when the actual large brands are going to make that turn, but we're hopeful that it will happen.

Unknown Attendee: And I just cannot see this as being sustainable for the long term, so I do think it will happen, and when it does, I think it will be a very big step function and it will be very material to this business. Thanks. And if I can just squeeze one last one on, with former President Trump, you know, doing the interview with Elon tonight on X, and I think, you know, that I believe the way that his agreement with three social works allows him to use his personal account to post.

Unknown Attendee: I'm just curious what you're, if you guys have any views that you'd want to share in terms of how you think that plays out, in terms of more content showing backup directly posted by Trump on the back of the interview tonight. For rumble events like these are very good, they create a lot of traffic around rumble, a lot of our craters go online, they stream, they commentate about it, and ends up being a very, very good event for rumble, just like the first debate was, we broke records there according to stream charts, and just like the GOP convention, these type of things are very positive for rumble, so any type of major events in the political space, regardless of where it happens, are very big for rumble and very important to rumble.

Unknown Attendee: So, I see that as a very positive thing, and, you know, I'm looking forward to watching that later tonight. Same here. Thank you. Our next question is from the line of Jason Heuchstein with Oppenheimer and Company, please go ahead. Thanks. Two follow-up. So, the outlook for minimum guarantees is pretty consistent with prior disclosure and kind of consistent with what we thought about in the next year. I guess the question is, how confident are you that you'll be able to support content class next year with the revenue share as opposed to minimum guarantees?

Unknown Attendee: I guess some of these delays with, again, GARM and the impact on RAC. To some of that put more pressure on you next year to perhaps extend or do minimum guarantees. So some color there, and then just a clarification question. So with some of the initiatives around like the products I guess you can call the 1775 coffee, you know, positive, vinegar. Does that show up now in the new definition of the monetizable audience monetization or is that in other?

Unknown Attendee: Thanks. I'll let Brandon ask the answer the second part. So the answer is yes. So audience monetization is any revenue that we're generating as a result of our users. So that's advertising products such as what you're saying, subscriptions, licensing, pay-per-view, tipping and platform fees. So yes, that would be included in our booth. And with respect to the MGs, we think that we've built a really good mouth strap going into next year with the way we're going to monetize audiences, not just programmatic advertising, not just subscriptions like with their local communities, but also the effect of live streaming and RAC and studio ads going in there as creative sponsorships.

Unknown Attendee: So we do think that the mouth strap is there for us to be able to retain this type of content, retain a lot of this content. And you know, we've seen, for example, some of these deals kind of expire already, and it has retained like academics as a perfect example of someone that continues to stream on the platform post a deal. And we think that will happen for various other creators as well.

Unknown Attendee: But when it comes to doing extensions with MGs and doing more MGs, we're only going to do it going forward if there's a positive ROI and it makes a lot of economic sense for us. We're not going to be doing that if it does not. And then just to follow up with the product deals, do those get booked for revenues at gross or net? So is it like your cut of it, or is it like all the sales flow through and then there's like cogs that come out?

Unknown Attendee: Yeah, it depends on the partnerships that we have with the brand. So at the moment, it's all being booked at net based on what our cut is of that. If we start selling our own product, for example, we would book that as gross. Okay, cool. Thank you for sharing guys. Thank you. Ladies and gentlemen, this concludes our question and answer session and also concludes the conference of rumble. Thank you for your participation. You may now disconnect your line.

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