Rumble Announces Record Third Quarter 2022 Financial Results
Rumble Inc. (NASDAQ: RUM) reported a record Q3 2022 revenue of $11.0 million, up 430% from Q3 2021 and 150% from Q2 2022. Monthly Active Users surged 97% year-over-year to 71 million, with 57 million from the U.S. and Canada. The company launched its in-house ad platform ahead of schedule, enhancing monetization opportunities. Despite these achievements, the company recorded an operating loss of $7.8 million, reflecting increased operational expenses. Rumble retained nearly all cash from its recent business combination, totaling $356.7 million in cash equivalents.
- Q3 2022 revenue increased 431% to $11.0 million compared to Q3 2021.
- Monthly Active Users rose 97% year-over-year to a record 71 million.
- Launched in-house ad platform ahead of schedule, enhancing advertising revenue.
- Completed business combination, retaining 99.9% of cash in trust.
- Operating loss expanded to $7.8 million in Q3 2022, up 395% from the previous year.
- General and administrative costs increased 294% compared to Q3 2021.
~ Q3 Revenue Increased over
~ Average Monthly Active Users Increased
~ Launched Company’s In-House Ad Platform Ahead of Schedule ~
~ Successfully Completed De-SPAC, Retaining Nearly All Cash in Trust ~
LONGBOAT KEY, Fla., Nov. 14, 2022 (GLOBE NEWSWIRE) -- Rumble Inc. (“Rumble”) (NASDAQ: RUM), the video-sharing platform, announced today financial results for the third quarter of 2022.
Q3 2022 Key Highlights
- Average global Monthly Active Users (“MAUs”) increased
97% to 71 million, a company record, compared to 36 million in the third quarter 2021- Of the 71 million, 57 million were based in the U.S. and Canada, compared to 25 million in the U.S. and Canada during the third quarter of 2021
- Average Minutes Watched Per Month (“MWPM”) increased
14% in the third quarter of 2022 to 9.0 billion compared to 7.9 billion in the third quarter of 2021 - Hours of uploaded video per day increased
220% to 8,796, compared to 2,746 in the third quarter of 2021 - Third quarter revenue increased over
430% to$11.0 million , a company record, compared to$2.1 million in the third quarter of 2021, and up150% when compared to$4.4 million in the second quarter of 2022 - As of September 30, 2022, Rumble’s balance of cash and cash equivalents was
$356.7 million as a result of the business combination with CF Acquisition Corp. VI (“CFVI”). The transaction provided Rumble with approximately$400 million in gross proceeds - Added new creators who will provide exclusive content to the platform including Glenn Greenwald, “SteveWillDoIt,” Viva Frei, and Russell Brand, diversifying Rumble’s content library and audience by attracting Gen Z viewers
- Launched the Company’s in-house ad platform – Rumble Advertising Center (“RAC”) for banner ads while onboarding RAC’s first publisher
- Launched free livestreaming for Rumble creators who have more than one hundred subscribers
- Launched article publishing feature for subscription-based community platform, Locals, enabling creators to customize their online publications using a comprehensive toolbar
- Launched Rumble Exclusives, an innovative livestreaming lineup featuring independent creators and a two-way conversation with their audiences
- Locals launched its Content+ feature to all communities on the platform after a successful beta program that included several films. Content+ allows creators to monetize movies, specials, and other on-demand content
Management Commentary
“Our third quarter was a milestone for the Company for numerous reasons,” commented Chris Pavlovski, Chairman and Chief Executive Officer of Rumble. “First, the quarter concluded with the completion of our business combination with CFVI. As a result, Rumble became a publicly traded company on Nasdaq under the symbol ‘RUM.’ Importantly, in the process of the business combination, we retained nearly all of the cash in the trust account –
Mr. Pavlovski continued, “I am most proud of our ability to build and scale with a very lean operation, which is a testament to the team that we’ve built and the culture that has been embedded in our DNA since our founding in 2013. As evidence of this, we raised our first outside capital, totaling
“Turning to our third quarter business highlights, we made significant strides in building out our tools for monetization by launching our ad platform ahead of schedule. This launch allowed advertisers the ability to access to a portion of Rumble’s website user traffic, enabling them to create banner and pre-roll video campaigns and to view their analytics. Demonstrated by our recent efforts, 2022 has been a foundational year for Rumble. As we head into 2023, we continue to focus on building our infrastructure for Rumble Cloud and building market-leading consumer products with Rumble, Locals and Rumble Ads. We will also begin to focus on monetization and growing topline revenues. While we are extremely encouraged by our third quarter financial results and key performance indicators, they are just the beginning as we have a long, incredible journey ahead of us. Rumble continues to attract users, creators, and advertisers to its platform while continuing the development of its own independent infrastructure. I look forward to executing on our mission while delivering value to our shareholders,” concluded Pavlovski.
Q3 Financial Summary
| For the three months ended September 30, | |||||||||
| 2022 | 2021 | Variance ($) | Variance (%) | ||||||
| Revenues | $ | 10,983,182 | $ | 2,069,473 | $ | 8,913,709 | |||
| Loss from operations | $ | (7,788,088) | $ | (1,572,526) | $ | (6,215,562) | |||
| Select Operating Expenses | |||||||||
| General and administrative | $ | 2,545,408 | $ | 646,537 | $ | 1,898,871 | |||
| Research and development | $ | 1,717,892 | $ | 314,062 | $ | 1,403,830 | |||
| Sales and marketing | $ | 6,547,045 | $ | 713,155 | $ | 5,833,890 | |||
For the third quarter of 2022, revenues increased
Loss from operations for the quarter was
General and administrative expense was
Research and development expense was
Sales and marketing expense was
Liquidity
As of September 30, 2022, Rumble had cash and cash equivalents of
Business Combination
On September 16, 2022, Rumble completed its business combination with CFVI. Gross proceeds from the business combination were approximately
The table below sets forth Rumble’s fully diluted capitalization as of September 30, 2022.
| Total | ||
| Common stock (1) | 279,129,977 | |
| Options, warrants & RSUs (2) (3) | 95,902,801 | |
| Total | 375,032,778 |
| (1) | Includes 88,703,127 shares of Class A Common Stock outstanding, plus 20,800,886 shares of Class A Common Stock outstanding which have been placed in escrow, plus 1,963,750 shares of Class A Common Stock outstanding held by the Sponsor which are subject to forfeiture, plus 112,050,496 shares of Class A Common Stock issuable upon exchange of Exchangeco shares outstanding, plus 55,611,718 shares of Class A Common Stock issuable upon exchange of Exchangeco shares outstanding which have been placed in escrow. Excludes (i) 105,782,403 Class D multiple voting shares held by Rumble’s founder that do not have economic benefit and (ii) 167,662,214 shares of Class C Common Stock which are issued in “tandem” with Exchangeco shares and which entitle the holder thereof to one vote per share but are otherwise non-economic. |
| (2) | Includes 58,165,405 shares of Class A Common Stock issuable under options, plus 28,587,396 shares of Class A Common Stock issuable under options that are subject to forfeiture (the “Tandem Option Earnout Shares”), plus 8,050,000 shares of Class A Common Stock issuable under warrants, plus 1,100,000 RSUs. Tandem Option Earnout Shares are placed in escrow if the underlying option has been exercised and the applicable triggering event under the Business Combination Agreement has not been satisfied. |
| (3) | Presented on an as-converted basis. |
Conference Call Webcast Information
Rumble will host a conference call at 5:00 p.m. Eastern Time today, Monday, November 14, 2022, to discuss its quarterly results. Access to the live webcast and replay of the conference call will be available here and on Rumble’s Investor Relations website at investors.rumble.com under ‘News & Events.’
Definitions
Monthly Active Users (MAUs) represent the total web and app users of Rumble for each month, reflecting unique web and app users, based on data provided by third-party analytics providers using company-set parameters. The analytics systems and the resulting data have not been independently verified. There is a potential for minor overlap in the resulting data due to users who access our content from both the web and the app in a given measurement period; however, given that we believe this minor overlap to be immaterial, we do not separately track or report “unique users” as distinct from MAUs. MAUs do not include embedded video, certain connected TV users, or users of the Locals platform. Like other major social media platforms, fraud and unauthorized access, if undetected, may contribute, from time to time, to some amount of overstatement of our performance indicators, including reporting of MAUs by our third-party analytics provider. Fraudulent activity is typically designed to inflate payments to individual rights holders.
Minutes Watched Per Month (MWPM) represents the monthly average of minutes watched per user within a quarterly period. MWPM is calculated by converting actual bandwidth consumption into minutes watched, using our management’s best estimate of video resolution quality mix and various encoding parameters. Bandwidth consumption includes video traffic across the entire Rumble platform (website, apps, embedded video, connected TV, etc.), as well as what our management believes is a nominal amount of non-video traffic. Starting in the second quarter of 2022 we began transitioning a portion of Locals’ bandwidth consumption to our infrastructure.
Hours of Uploaded Video Per Day is a measure of content creation to help it understand the volume of content being created and uploaded to us on a daily basis.
About Rumble
Rumble is a high-growth neutral video platform that is creating the rails and independent infrastructure designed to be immune to cancel culture. Rumble's mission is to restore the Internet to its roots by making it free and open once again. For more information, visit investors.rumble.com.
Forward-Looking Statements
Certain statements in this press release constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Statements contained in this press release that are not historical facts are forward-looking statements and include, for example, results of operations, financial condition and cash flows (including revenues, operating expenses, and net income (loss)); our ability to meet working capital needs and cash requirements over the next 12 months; and our expectations regarding future results and certain key performance indicators. Certain of these forward-looking statements can be identified by using words such as “anticipates,” “believes,” “intends,” “estimates,” “targets,” “expects,” “endeavors,” “forecasts,” “could,” “will,” “may,” “future,” “likely,” “on track to deliver,” “gaining momentum,” “continues to,” “looks forward to,” “begins to focus on,” “plans,” “projects,” “assumes,” “should” or other similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, and our actual results could differ materially from future results expressed or implied in these forward-looking statements. The forward-looking statements included in this release are based on our current beliefs and expectations of our management as of the date of this release. These statements are not guarantees or indicative of future performance. Important assumptions and other important factors that could cause actual results to differ materially from those forward-looking statements include, but are not limited to, our ability to recognize the anticipated benefits of the Business Combination, which may be affected by, among other things, our ability to grow and manage growth profitably, maintain relationships with customers, compete within our industry and retain key employees; the possibility that we may be adversely impacted by economic, business, and/or competitive factors; our limited operating history making it difficult to evaluate our business and prospects; our inability to effectively manage future growth and achieve operational efficiencies; our recent and rapid growth not being indicative of future performance; our inability to grow or maintain our active user base; our inability to achieve or maintain profitability; our failure to comply with applicable privacy laws; occurrence of a cyber incident resulting in information theft, data corruption, operational disruption and/or financial loss; potential liability for hosting a variety of tortious or unlawful materials uploaded by third parties; negative publicity for removing, or declining to remove, certain content, regardless of whether such content violated any law; impediment of access to our content and services on the Internet; significant market competition that we face; changes to our existing content and services resulting in failure to attract traffic and advertisers or to generate revenue; our dependence on third party vendors; our inability to realize the expected benefits of financial incentives that we offer to our content creators; potential diversion of management’s attention and consumption of resources as a result of acquisitions of other companies and success in integrating and otherwise achieving the benefits of recent and potential acquisitions; failure to maintain adequate operational and financial resources or raise additional capital or generate sufficient cash flows; adverse effect on our business by compliance obligations imposed by new privacy laws, laws regulating social media platforms and online speech in the U.S. and Canada; and those additional risks, uncertainties and factors described in more detail under the caption “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, and in our other filings with the Securities and Exchange Commission. We do not intend, and, except as required by law, we undertake no obligation, to update any of our forward-looking statements after the issuance of this release to reflect any future events or circumstances. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
Rumble Social Media
Investors and others should note that we announce material financial and operational information to our investors using our investor relations website (investors.rumble.com), press releases, SEC filings and public conference calls and webcasts. We also intend to use certain social media accounts as a means of disclosing information about us and our services and for complying with our disclosure obligations under Regulation FD: the @rumblevideo Twitter account (https://twitter.com/rumblevideo), the @rumble TRUTH Social account (https://truthsocial.com/@rumble), the @chrispavlovski Twitter account (https://twitter.com/chrispavlovski), and the @chris TRUTH Social account (https://truthsocial.com/@chris), which Chris Pavlovski, our founder and Chief Executive Officer, also uses as a means for personal communications and observations. The information we post through these social media channels may be deemed material. Accordingly, investors should monitor these social media channels in addition to following our press releases, SEC filings and public conference calls and webcasts. The social media channels that we intend to use as a means of disclosing the information described above may be updated from time to time as listed on our investor relations website.
For investor inquiries, please contact:
Shannon Devine
MZ Group, MZ North America
203-741-8811
investors@rumble.com
Source: Rumble Inc.
Condensed Consolidated Interim Statements of Comprehensive Loss (Unaudited)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenues | $ | 10,983,182 | $ | 2,069,473 | $ | 19,427,259 | $ | 6,526,815 | ||||||||
| Cost of revenues | 7,489,884 | 1,809,612 | 14,671,468 | 4,735,912 | ||||||||||||
| Gross profit | $ | 3,493,298 | $ | 259,861 | $ | 4,755,791 | $ | 1,790,903 | ||||||||
| Operating expenses | ||||||||||||||||
| General and administrative | $ | 2,545,408 | $ | 646,537 | $ | 5,577,028 | $ | 1,237,264 | ||||||||
| Research and development | 1,717,892 | 314,062 | 3,701,790 | 840,651 | ||||||||||||
| Sales and marketing | 6,547,045 | 713,155 | 9,626,375 | 1,408,477 | ||||||||||||
| Finance costs | - | - | 1,341,056 | 304,627 | ||||||||||||
| Share-based compensation | 188,667 | 43,834 | 222,639 | 43,834 | ||||||||||||
| Foreign exchange loss (gain) | 24,980 | 97,258 | 49,548 | (109,964 | ) | |||||||||||
| Amortization and depreciation | 257,394 | 17,541 | 625,369 | 45,279 | ||||||||||||
| Total operating expenses | 11,281,386 | 1,832,387 | 21,143,805 | 3,770,168 | ||||||||||||
| Loss from operations | (7,788,088 | ) | (1,572,526 | ) | (16,388,014 | ) | (1,979,265 | ) | ||||||||
| Interest income, net | 210,548 | 18,428 | 231,999 | 10,165 | ||||||||||||
| Other income, net | - | 570 | - | 175,570 | ||||||||||||
| Changes in fair value of warrant liability | 5,715,500 | - | 5,715,500 | - | ||||||||||||
| Changes in fair value of option liability | - | (1,071,429 | ) | - | (1,071,429 | ) | ||||||||||
| Loss before income taxes | (1,862,040 | ) | (2,624,957 | ) | (10,440,515 | ) | (2,864,959 | ) | ||||||||
| Income tax (expense) recovery | 3,588 | - | (18,811 | ) | - | |||||||||||
| Net and comprehensive loss | $ | (1,858,452 | ) | $ | (2,624,957 | $ | (10,459,326 | ) | $ | (2,864,959 | ) | |||||
| Loss per share: | ||||||||||||||||
| Basic | $ | (0.01 | ) | $ | (0.35 | ) | $ | (0.06 | ) | $ | (0.38 | ) | ||||
| Diluted | $ | (0.01 | ) | $ | (0.35 | ) | $ | (0.06 | ) | $ | (0.38 | ) | ||||
| Weighted-average shares used to compute loss per share: | ||||||||||||||||
| Basic | 177,962,153 | 7,541,000 | 174,377,485 | 7,541,000 | ||||||||||||
| Diluted | 177,962,153 | 7,541,000 | 174,377,485 | 7,541,000 | ||||||||||||
Condensed Consolidated Interim Balance Sheets (Unaudited)
| September 30, | December 31, | |||||||
| 2022 | 2021 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 356,680,050 | $ | 46,847,375 | ||||
| Accounts receivable, net | 7,860,047 | 1,812,790 | ||||||
| Prepaid expenses | 3,438,253 | 389,849 | ||||||
| 367,978,350 | 49,050,014 | |||||||
| Capital assets | 6,535,329 | 1,286,849 | ||||||
| Right-of-use assets | 1,500,757 | 1,515,841 | ||||||
| Intangible assets | 2,943,006 | 3,285,578 | ||||||
| Goodwill | 662,899 | 662,899 | ||||||
| $ | 379,620,341 | $ | 55,801,181 | |||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 12,478,936 | $ | 6,853,403 | ||||
| Deferred revenue | 368,739 | 30,014 | ||||||
| Lease liabilities | 579,345 | 315,159 | ||||||
| Income taxes payable | 257,028 | 934 | ||||||
| 13,684,048 | 7,199,510 | |||||||
| Warrant liability | 25,357,500 | - | ||||||
| Lease liabilities, long-term | 985,110 | 1,195,139 | ||||||
| Other liability | 500,000 | 250,000 | ||||||
| 40,526,658 | 8,644,649 | |||||||
| Temporary equity | ||||||||
| Preference shares | - | 16,789,203 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity | ||||||||
| Common shares | 768,357 | 43,353,370 | ||||||
| Deficit | (27,838,033 | ) | (17,378,707 | ) | ||||
| Additional paid-in capital | 366,163,359 | 4,392,666 | ||||||
| 339,093,683 | 30,367,329 | |||||||
| $ | 379,620,341 | $ | 55,801,181 | |||||
Condensed Consolidated Interim Statements of Cash Flows (Unaudited)
| For the nine months ended September 30, | 2022 | 2021 | ||||||
| Cash flows provided by (used in) | ||||||||
| Operating activities | ||||||||
| Net and comprehensive loss for the period | $ | (10,459,326 | ) | $ | (2,864,959 | ) | ||
| Adjustments to reconcile net loss to cash flows used in operating activities: | ||||||||
| Amortization and depreciation | 1,308,889 | 66,274 | ||||||
| Share-based compensation | 222,639 | 43,834 | ||||||
| Interest expense | 28,145 | 2,210 | ||||||
| Gain on change in fair value of warrants | (5,715,500 | ) | - | |||||
| Loss on change in fair value of option liability | - | 1,071,429 | ||||||
| Unrealized foreign exchange gain (loss) | 45,707 | (3,998 | ) | |||||
| (14,569,446 | ) | (1,685,210 | ) | |||||
| Changes in non-cash working capital: | ||||||||
| Accounts receivable | (6,047,258 | ) | 301,969 | |||||
| Prepaid expenses | (3,048,405 | ) | (295,165 | ) | ||||
| Accounts payable and accrued liabilities | 6,059,222 | 1,463,488 | ||||||
| Deferred revenue | 338,725 | 1,849 | ||||||
| Income taxes payable | 256,095 | 9 | ||||||
| (17,011,067 | ) | (213,060 | ) | |||||
| Investing activities | ||||||||
| Purchase of capital assets | (5,830,881 | ) | (520,064 | ) | ||||
| Purchase of intellectual property | - | (500,447 | ) | |||||
| (5,830,881 | ) | (1,020,511 | ) | |||||
| Financing activities | ||||||||
| Repayments of bank indebtedness | - | (337,535 | ) | |||||
| Lease payments | (342,870 | ) | (40,293 | ) | ||||
| Proceeds from other liabilities | 250,000 | 244,766 | ||||||
| Proceeds from issuance of Legacy Rumble preferred shares and Class A common shares | - | 25,000,000 | ||||||
| Proceeds from Qualifying Transaction | 399,807,596 | - | ||||||
| Repurchase of Class C Common Stock | (11,000,000 | ) | - | |||||
| Repayment of Sponsor loan in connection with Qualifying Transaction | (2,173,353 | ) | - | |||||
| Share issuance costs | (53,866,750 | ) | (710,797 | ) | ||||
| 332,674,623 | 24,156,141 | |||||||
| Increase in cash and cash equivalents during the period | 309,832,675 | 22,922,570 | ||||||
| Cash and cash equivalents, beginning of period | 46,847,375 | 1,446,047 | ||||||
| Cash and cash equivalents, end of period | $ | 356,680,050 | $ | 24,368,617 | ||||
FAQ
What were Rumble's Q3 2022 revenue figures?
How many Monthly Active Users does Rumble have as of Q3 2022?
What was the operating loss for Rumble in Q3 2022?
When did Rumble complete its business combination?
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