Rumble Reports Second Quarter 2024 Results
Rumble Inc. (Nasdaq: RUM) reported Q2 2024 financial results, showing sequential revenue growth of 27% to $22.5 million. Key highlights include:
- Average global Monthly Active Users (MAUs) reached 53 million, up from 50 million in Q1 2024
- Introduced new KPI: Average Revenue Per User (ARPU) at $0.37, up 19% from Q1 2024
- Set a new record of 718,909 concurrent live viewers during the Biden-Trump debate
- Announced partnerships with PublicSquare, Miami Dolphins, and Hard Rock Stadium
- Filed antitrust lawsuits against Google and other entities
- Launched new products and expanded to Xbox platform
- Cash, cash equivalents, and marketable securities balance of $154.2 million as of June 30, 2024
Rumble Inc. (Nasdaq: RUM) ha riportato i risultati finanziari del secondo trimestre del 2024, mostrando una crescita sequenziale del fatturato del 27% arrivando a 22,5 milioni di dollari. I punti chiave includono:
- Gli utenti attivi mensili globali medi (MAU) hanno raggiunto 53 milioni, in aumento rispetto ai 50 milioni del primo trimestre del 2024
- Introdotto un nuovo KPI: Ricavo Medio per Utente (ARPU) a $0,37, in aumento del 19% rispetto al primo trimestre del 2024
- Stabilito un nuovo record di 718.909 spettatori in diretta simultanei durante il dibattito Biden-Trump
- Annunciato accordi con PublicSquare, Miami Dolphins e Hard Rock Stadium
- Presentate azioni legali antitrust contro Google e altri soggetti
- Lanciati nuovi prodotti e ampliato la piattaforma Xbox
- Saldo di cassa, equivalenti di cassa e titoli quotati di 154,2 milioni di dollari al 30 giugno 2024
Rumble Inc. (Nasdaq: RUM) informó los resultados financieros del segundo trimestre de 2024, mostrando un crecimiento secuencial de ingresos del 27% hasta alcanzar los 22,5 millones de dólares. Los aspectos más destacados incluyen:
- El promedio de Usuarios Activos Mensuales (MAUs) a nivel global alcanzó 53 millones, en comparación con los 50 millones en el primer trimestre de 2024
- Introducción de un nuevo KPI: Ingreso Promedio por Usuario (ARPU) de $0,37, un aumento del 19% desde el primer trimestre de 2024
- Establecido un nuevo récord de 718.909 espectadores concurrentes en vivo durante el debate Biden-Trump
- Anunciadas asociaciones con PublicSquare, Miami Dolphins y Hard Rock Stadium
- Se presentaron demandas antimonopolio contra Google y otras entidades
- Nuevos productos lanzados y expansión a la plataforma Xbox
- Saldo de efectivo, equivalentes de efectivo y valores negociables de 154,2 millones de dólares al 30 de junio de 2024
럼블 주식회사(Rumble Inc., Nasdaq: RUM)는 2024년 2분기 재무 결과를 보고하며 매출이 27% 증가하여 2,250만 달러에 달했다고 발표했습니다. 주요 내용은 다음과 같습니다:
- 전 세계 평균 월간 활성 사용자 수(MAU)가 5,300만 명에 도달하여 2024년 1분기 5,000만 명에서 증가했습니다
- 새로운 KPI인 사용자당 평균 수익(ARPU)이 $0.37, 2024년 1분기 대비 19% 증가하였습니다
- 바이든-트럼프 토론 중 718,909명의 동시 실시간 시청자라는 새로운 기록을 세웠습니다
- PublicSquare, Miami Dolphins, Hard Rock Stadium과의 파트너십 발표
- 구글 및 기타 법인에 대한 반독점 소송 제기
- 새로운 제품 출시 및 Xbox 플랫폼 확장
- 2024년 6월 30일 기준으로 현금, 현금성 자산 및 유가증권 잔액이 1억 5,420만 달러입니다
Rumble Inc. (Nasdaq: RUM) a annoncé les résultats financiers du deuxième trimestre 2024, montrant une croissance séquentielle des revenus de 27 % pour atteindre 22,5 millions de dollars. Les faits saillants incluent :
- Le nombre moyen d'utilisateurs actifs mensuels (MAU) a atteint 53 millions, contre 50 millions au premier trimestre 2024
- Introduction d'un nouveau KPI : Revenu Moyen par Utilisateur (ARPU) à $0,37, en hausse de 19 % par rapport au premier trimestre 2024
- Établi un nouveau record de 718 909 spectateurs en direct simultanés lors du débat Biden-Trump
- Annonce de partenariats avec PublicSquare, Miami Dolphins et Hard Rock Stadium
- Dépôts de recours en antitrust contre Google et d'autres entités
- Lancement de nouveaux produits et expansion sur la plateforme Xbox
- Solde de liquidités, d'équivalents de liquidités et de titres négociables de 154,2 millions de dollars au 30 juin 2024
Rumble Inc. (Nasdaq: RUM) hat die finanziellen Ergebnisse des zweiten Quartals 2024 veröffentlicht, mit einem sequenziellen Umsatzwachstum von 27% auf 22,5 Millionen Dollar. Wichtige Highlights sind:
- Die durchschnittliche Anzahl der monatlich aktiven Nutzer (MAUs) erreichte 53 Millionen, ein Anstieg von 50 Millionen im ersten Quartal 2024
- Einführung einer neuen KPI: Der durchschnittliche Umsatz pro Nutzer (ARPU) beträgt $0,37, was einen Anstieg von 19% im Vergleich zum ersten Quartal 2024 darstellt
- Ein neuer Rekord von 718.909 gleichzeitigen Live-Zuschauern während der Biden-Trump-Debatte
- Partnerschaften mit PublicSquare, Miami Dolphins und Hard Rock Stadium bekannt gegeben
- Antitrust-Klagen gegen Google und andere Unternehmen eingereicht
- Neue Produkte eingeführt und auf die Xbox-Plattform ausgeweitet
- Bargeld, bargeldähnliche Mittel und Marktwerte in Höhe von 154,2 Millionen Dollar zum 30. Juni 2024
- Sequential revenue growth of 27% to $22.5 million in Q2 2024
- Average global Monthly Active Users (MAUs) increased to 53 million
- New KPI: Average Revenue Per User (ARPU) up 19% to $0.37 in Q2 2024
- Set a new record of 718,909 concurrent live viewers during Biden-Trump debate
- Partnerships with PublicSquare, Miami Dolphins, and Hard Rock Stadium
- Launched new products and expanded to Xbox platform
- Strong cash position with $154.2 million in cash, cash equivalents, and marketable securities
- Year-over-year revenue decrease of 10% from $25.0 million in Q2 2023 to $22.5 million in Q2 2024
- Increase in general and administrative expenses by 13% year-over-year
- Research and development expenses up 22% compared to Q2 2023
- Sales and marketing expenses increased by 70% year-over-year
- Continued operating losses, with expenses exceeding revenues in Q2 2024
Rumble's Q2 2024 results show mixed signals. The company reported
The balance sheet remains strong with
Rumble's tech strategy shows promise but faces challenges. The shift to a proprietary CDN is a cost-saving move, potentially improving long-term profitability. However, this transition has affected the company's ability to accurately measure user engagement, as evidenced by the changes in MWPM reporting.
The launch on Xbox and the introduction of new features like watch history and playlists demonstrate Rumble's commitment to platform enhancement. The focus on cloud services, exemplified by the PublicSquare partnership, could open new revenue streams. Yet, the
Rumble's market position is evolving, with a clear focus on the political content niche. The record-breaking concurrent viewers for the Biden-Trump debate highlights the platform's growing relevance in this space. The
The introduction of Rumble-branded products like 1775 Coffee shows diversification efforts, but their impact remains to be seen. The company's expectation of continued sequential revenue growth throughout 2024, driven by political advertising, suggests a strong reliance on the upcoming election cycle. This strategy could lead to volatility in user engagement and revenue post-election, making it important for Rumble to develop sustainable, non-political content streams for long-term stability.
~ Delivers Sequential Revenue Growth of
~ Introduces New KPI, Average Revenue Per User (ARPU), Up
LONGBOAT KEY, Fla., Aug. 12, 2024 (GLOBE NEWSWIRE) -- Rumble Inc. (Nasdaq: RUM) (“Rumble” or the “Company”), the video-sharing platform and cloud services provider, today announced financial results for the fiscal quarter ended June 30, 2024.
Q2 2024 Key Highlights and Key Items
- Revenue for the second quarter was
$22.5 million , a sequential increase of27% from$17.7 million in the first quarter of 2024 and compared to$25.0 million in the second quarter of 2023. - Average global Monthly Active Users (“MAUs”) of 53 million in the second quarter of 2024, compared to 50 million in the first quarter of 2024. This represents the tenth consecutive quarter above 40 million average global MAUs on the platform. We believe that the increase from the first quarter of 2024 is attributable to an increased interest in political news in the second quarter of 2024. Of the 53 million MAUs, 37 million were based in the U.S. and Canada.
- Set a new record for concurrent live stream viewers in America on the Rumble platform during the debate between President Joe Biden and former President Donald Trump on June 27, 2024. According to Streams Charts, a third-party streaming analytics firm, Rumble hit a peak of 718,909 concurrent live viewers, a record for the platform.
- As previously discussed, given Rumble’s increasing focus on monetization of its user base, the Company introduced a new key business metric, Average Revenue Per User (“ARPU”), that we believe better reflects the focus of our management team. ARPU for the second quarter was
$0.37 , an increase of19% from the first quarter of 2024, and is attributable to higher sponsorship revenue. With the introduction of ARPU, the second quarter of 2024 is the last quarter for which Rumble plans to report estimated average Minutes Watched Per Month (“MWPM”) and hours of uploaded video per day. - Estimated MWPM were 8.5 billion in the second quarter of 2024, compared to 8.6 billion in the first quarter of 2024, due to our bandwidth consumption moving from third-party service providers’ CDNs to our own proprietary CDN, offset by an increased interest in political news in the second quarter of 2024.
- Hours of uploaded video per day increased
1% to 13,342 in the second quarter of 2024, compared to 13,229 in the second quarter of 2023, and were up7% compared to the first quarter of 2024. We believe this increase is attributable to an increased interest in political news in the second quarter of 2024. - Announced that PublicSquare, America’s leading commerce and payments ecosystem that values freedom and supports the parallel economy, intends to migrate its PublicSquare Marketplace segment to the Rumble Cloud platform.
- On May 13, 2024, Rumble filed a second antitrust lawsuit against Google based on Google’s monopolization of the online advertising market, with alleged damages in excess of
$1 billion (before trebling). This lawsuit is separate and distinct from the self-preferencing lawsuit that was filed in January 2021, which remains in discovery with a trial scheduled for May 2025. - Continued to progress the Rumble platform with the release of watch history and playlists across all mobile and TV apps, in addition to the initial launch of Rumble Premium subscription service on the mobile apps.
- As of June 30, 2024, Rumble’s balance of cash, cash equivalents and marketable securities was approximately
$154.2 million .
Subsequent Events
- Today, Rumble Cloud announced a partnership with the Miami Dolphins and Hard Rock Stadium, marking a major milestone for Rumble Cloud by onboarding one of the NFL’s premier franchises.
- Rumble joined the social media platform X to file lawsuits alleging a conspiracy to withhold advertising revenue from Rumble and other digital media platforms. In its filing in the U.S. District Court for the Northern District of Texas, Rumble named as defendants the World Federation of Advertisers, as well as the advertising agency WPP and its subsidiary GroupM Worldwide.
- Following the successful launch of 1775 Coffee, which as of July 15, 2024 achieved annualized run rate sales exceeding
$1 million , the Company announced partnerships that established three additional exclusive Rumble-branded products: Pawsitive, Be Naked and 5G Free. Rumble has successfully partnered with brands to expand exposure to alternative monetization sources that generate immediate revenue and cross-sell opportunities for Rumble Advertising Center (“RAC”). - Announced the launch of the Rumble app on Xbox, an exciting expansion of Rumble’s video distribution capabilities, further bolstering the independent creator economy while providing enhanced experiences for Rumble viewers.
Management Commentary
Rumble's Chairman and CEO Chris Pavlovski commented, "The second quarter evidenced proof and traction that our audience is ripe for monetization. With the appropriate user base for monetization, we moved forward and introduced a new key performance indicator in the second quarter - Average Revenue Per User (ARPU) - and delivered a
Q2 Financial Summary (Unaudited)
For the three months ended June 30, | 2024 | 2023 | Variance ($ | ) | Variance (% | ) | ||||||||
Revenues | $ | 22,469,543 | $ | 24,974,054 | $ | (2,504,511 | ) | (10 | %) | |||||
Expenses | ||||||||||||||
Cost of services (content, hosting and other) | $ | 35,692,133 | $ | 40,849,816 | $ | (5,157,683 | ) | (13 | %) | |||||
General and administrative | 10,415,016 | 9,199,183 | 1,215,833 | 13 | % | |||||||||
Research and development | 5,319,230 | 4,348,760 | 970,470 | 22 | % | |||||||||
Sales and marketing | 6,274,749 | 3,697,312 | 2,577,437 | 70 | % |
For the second quarter of 2024, revenue was
Cost of services was
General and administrative expense was
Research and development expense was
Sales and marketing expense was
Liquidity
As of June 30, 2024, our cash, cash equivalents, and marketable securities balance was
Outlook
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.
As we ramp up monetization and maintain discipline around our cost structure, we continue to expect to move materially towards Adjusted EBITDA breakeven in 2025.
Conference Call Webcast Information
Rumble will host a conference call at 5:00 p.m. Eastern Time today, Monday, August 12, 2024, 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.’
Chris Pavlovski, the Chairman and CEO of Rumble, will also be interviewed by Matt Kohrs this evening at 6:30 p.m. Eastern Time. The interview will be accessible here and streamed live on the Matt Kohrs Rumble channel at rumble.com/MattKohrs.
Notes on KPIs
Monthly Active Users ("MAUs").
We use MAUs as a measure of audience engagement to help us understand the volume of users engaged with our content on a monthly basis. MAUs represent the total web, mobile app, and connected TV users of Rumble for each month, which allows us to measure our total user base calculated from data provided by Google, a third-party analytics provider. Google defines “active users” as the “[n]umber of distinct users who visited your website or application.” We have used the Google analytics systems since we first began publicly reporting MAU statistics, and the resulting data have not been independently verified.
As of July 1, 2023, Universal Analytics (“UA”), Google’s analytics platform on which we historically relied for calculating MAUs using company-set parameters, was phased out by Google and ceased processing data. At that time, Google Analytics 4 (“GA4”) succeeded UA as Google’s next-generation analytics platform, which has been used to determine MAUs since the third quarter of 2023 and which we expect to continue to use to determine MAUs in future periods. Although Google has disclosed certain information regarding the transition to GA4, Google does not currently make available sufficient information relating to its new GA4 algorithm for us to determine the full effect of the switch from UA to GA4 on our reported MAUs. Because Google has publicly stated that metrics in UA “may be more or less similar” to metrics in GA4, and that “[i]t is not unusual for there to be apparent discrepancies” between the two systems, we are unable to determine whether the transition from UA to GA4 has had a positive or negative effect, or the magnitude of such effect, if any, on our reported MAUs. It is therefore possible that MAUs that we reported based on the UA methodology for periods prior to July 1, 2023, cannot be meaningfully compared to MAUs based on the GA4 methodology in subsequent periods.
Average Revenue Per User (“ARPU”)
We use ARPU as a measure of our ability to monetize our user base. Quarterly ARPU is calculated as quarterly Audience Monetization revenue divided by MAUs for the relevant quarter (the latter as reported by Google Analytics). ARPU does not include Other Initiatives revenue.
Estimated Minutes Watched Per Month ("MWPM").
We use estimated MWPM as a measure of audience engagement to help us understand the volume of users engaged with our content on a monthly basis and the intensity of users’ engagement with the platform. Estimated MWPM represents the monthly average of minutes watched within a quarterly period, which helps us measure user engagement. Estimated 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. We continually seek to improve our best estimates based on our observations of creator and user behavior on the Rumble platform, which changes based on the introduction of new product features, including livestreaming. We are currently limited, however, in our ability to collect data from certain aspects of our systems. These limits may result in errors that are difficult to quantify, especially as the proportion of livestreaming on the Rumble platform increases over time, and as we improve the quality of various video formats by increasing bit rates.
Bandwidth consumption includes video traffic across the entire Rumble platform (website, apps, embedded video, connected TV, RAC, etc.). In addition, our management believes bandwidth consumption includes a nominal amount of non-video traffic on the Rumble and Locals platforms and a potentially significant amount of consumption of Rumble videos outside of the Rumble video player and Rumble apps, due in part to intentional user circumvention of the Rumble platform that, despite our continuous efforts, we are unable to eliminate. Combined, the bandwidth consumption for this traffic may be material and difficult to quantify, resulting in an inability for us to monetize a potentially significant portion of our estimated MWPM.
Estimated MWPM was 8.5 billion on average in the second quarter of 2024, a decrease of
Hours of Uploaded Video Per Day.
We use the amount of hours of uploaded video per day as a measure of content creation to help us understand the volume of content being created and uploaded to us on a daily basis. Hours of uploaded video per day were 13,342 on average in the second quarter of 2024, representing an increase of
About Rumble
Rumble is a high-growth video platform and cloud services provider that is creating an independent infrastructure. Rumble's mission is to restore the internet to its roots by making it free and open once again. For more information, visit corp.rumble.com.
Forward-Looking Statements
Certain statements in this press release and the associated conference call 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,” “well underway,” “could,” “a pathway to,” “will,” “may,” “future,” “likely,” “on track to deliver,” “accelerate,” “on a trajectory,” “continues to,” “looks forward to,” “is primed to,” “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 our ability to grow and manage future growth profitably over time, 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 makes it difficult to evaluate our business and prospects; our recent and rapid growth may not be indicative of future performance; we may not continue to grow or maintain our active user base, and may not be able to achieve or maintain profitability; risks relating to our ability to attract new advertisers, or the potential loss of existing advertisers or the reduction of or failure by existing advertisers to maintain or increase their advertising budgets; Rumble Cloud, our recently launched cloud services business may not achieve success and, as a result, our business, financial condition and results of operations could be adversely affected; negative media campaigns may adversely impact our financial performance, results of operations, and relationships with our business partners, including content creators and advertisers; spam activity, including inauthentic and fraudulent user activity, if undetected, may contribute, from time to time, to some amount of overstatement of our performance indicators; we collect, store, and process large amounts of user video content and personal information of our users and subscribers and, if our security measures are breached, our sites and applications may be perceived as not being secure, traffic and advertisers may curtail or stop viewing our content or using our services, our business and operating results could be harmed, and we could face governmental investigations and legal claims from users and subscribers; we may fail to comply with applicable privacy laws; we are subject to cybersecurity risks and interruptions or failures in our information technology systems and, notwithstanding our efforts to enhance our protection from such risks, a cyber incident could occur and result in information theft, data corruption, operational disruption and/or financial loss; we may be found to have infringed on the intellectual property of others, which could expose us to substantial losses or restrict our operations; we may face liability for hosting a variety of tortious or unlawful materials uploaded by third parties, notwithstanding the liability protections of Section 230 of the Communications Decency Act of 1996; we may face negative publicity for removing, or declining to remove, certain content, regardless of whether such content violated any law; paid endorsements by our content creators may expose us to regulatory risk, liability, and compliance costs, and, as a result, may adversely affect our business, financial condition and results of operations; our traffic growth, engagement, and monetization depend upon effective operation within and compatibility with operating systems, networks, devices, web browsers and standards, including mobile operating systems, networks, and standards that we do not control; our business depends on continued and unimpeded access to our content and services on the internet and, if we or those who engage with our content experience disruptions in internet service, or if internet service providers are able to block, degrade or charge for access to our content and services, we could incur additional expenses and the loss of traffic and advertisers; we face significant market competition, and if we are unable to compete effectively with our competitors for traffic and advertising spend, our business and operating results could be harmed; we rely on data from third parties to calculate certain of our performance metrics and real or perceived inaccuracies in such metrics may harm our reputation and negatively affect our business; changes to our existing content and services could fail to attract traffic and advertisers or fail to generate revenue; we derive the majority of our revenue from advertising and the failure to attract new advertisers, the loss of existing advertisers, or the reduction of or failure by existing advertisers to maintain or increase their advertising budgets would adversely affect our business; we depend on third-party vendors, including internet service providers, advertising networks, and data centers, to provide core services; hosting and delivery costs may increase unexpectedly; we have offered and intend to continue to offer incentives, including economic incentives, to content creators to join our platform, and these arrangements may involve fixed payment obligations that are not contingent on actual revenue or performance metrics generated by the applicable content creator but rather are based on our modeled financial projections for that creator, which if not satisfied may adversely impact our financial performance, results of operations and liquidity; we may be unable to develop or maintain effective internal controls; 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; we may fail to maintain adequate operational and financial resources or raise additional capital or generate sufficient cash flows; changes in tax rates, changes in tax treatment of companies engaged in e-commerce, the adoption of new tax legislation, or exposure to additional tax liabilities may adversely impact our financial results; compliance obligations imposed by new privacy laws, laws regulating social media platforms and online speech in certain jurisdictions in which we operate, or industry practices may adversely affect our business; and those additional risks, uncertainties and factors described in more detail under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, 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 on 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 X (formerly Twitter) account (x.com/rumblevideo), the @rumble TRUTH Social account (truthsocial.com/@rumble), the @chrispavlovski X (formerly Twitter) account (x.com/chrispavlovski), and the @chris TRUTH Social account (truthsocial.com/@chris), which Chris Pavlovski, our Chairman 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 Operations (Unaudited) | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Revenues | $ | 22,469,543 | $ | 24,974,054 | $ | 40,202,999 | $ | 42,589,429 | |||||||
Expenses | |||||||||||||||
Cost of services (content, hosting, other) | $ | 35,692,133 | $ | 40,849,816 | $ | 67,520,487 | $ | 66,864,181 | |||||||
General and administrative | 10,415,016 | 9,199,183 | 19,737,395 | 17,794,279 | |||||||||||
Research and development | 5,319,230 | 4,348,760 | 9,847,022 | 6,966,419 | |||||||||||
Sales and marketing | 6,274,749 | 3,697,312 | 9,571,491 | 7,032,877 | |||||||||||
Acquisition-related transaction costs | - | 704,202 | - | 704,202 | |||||||||||
Amortization and depreciation | 3,564,219 | 1,043,560 | 5,990,361 | 1,724,634 | |||||||||||
Changes in fair value of contingent consideration | 17,768 | (373,996 | ) | 1,354,357 | (373,996 | ) | |||||||||
Total expenses | 61,283,115 | 59,468,837 | 114,021,113 | 100,712,596 | |||||||||||
Loss from operations | (38,813,572 | ) | (34,494,783 | ) | (73,818,114 | ) | (58,123,167 | ) | |||||||
Interest income | 2,174,166 | 3,570,423 | 4,696,118 | 6,878,350 | |||||||||||
Other expense | (3,869 | ) | (2,495 | ) | (73,577 | ) | (18,401 | ) | |||||||
Changes in fair value of warrant liability | 10,014,200 | 1,489,250 | (723,695 | ) | (6,842,500 | ) | |||||||||
Loss before income taxes | (26,629,075 | ) | (29,437,605 | ) | (69,919,268 | ) | (58,105,718 | ) | |||||||
Income tax expense | (151,625 | ) | (16,475 | ) | (151,472 | ) | (16,475 | ) | |||||||
Net loss | $ | (26,780,700 | ) | $ | (29,454,080 | ) | $ | (70,070,740 | ) | $ | (58,122,193 | ) | |||
Loss per share – basic and diluted | $ | (0.13 | ) | $ | (0.15 | ) | $ | (0.35 | ) | $ | (0.29 | ) | |||
Weighted-average number of common shares | |||||||||||||||
used in computing net loss per | |||||||||||||||
share - basic and diluted | 204,091,819 | 201,257,144 | 202,998,041 | 201,006,921 | |||||||||||
Share-based compensation expense included in expenses: | |||||||||||||||
Cost of services (content, hosting, and other) | $ | 2,538,203 | $ | 689,732 | $ | 2,927,113 | $ | 40,160,084 1,198,807 | |||||||
General and administrative | 3,061,516 | 2,743,507 | 7,037,387 | - | 4,438,058 | ||||||||||
Research and development | 666,468 | 298,176 | 937,340 | - | 365,274 | ||||||||||
Sales and marketing | 291,194 | 129,261 | 418,435 | - | 167,747 | ||||||||||
Total share-based compensation expense | $ | 6,557,381 | $ | 3,860,676 | $ | 11,320,275 | $ | 6,169,886 | |||||||
Condensed Consolidated Interim Balance Sheets (Unaudited) | |||||||
June 30, 2024 | December 31, 2023 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 153,103,502 | $ | 218,338,658 | |||
Marketable securities | 1,135,200 | 1,135,200 | |||||
Accounts receivable | 10,093,581 | 5,440,447 | |||||
Prepaid expenses and other | 18,888,144 | 13,090,072 | |||||
183,220,427 | 238,004,377 | ||||||
Other non-current assets | 646,089 | 1,626,802 | |||||
Property and equipment, net | 18,974,584 | 19,689,987 | |||||
Right-of-use assets, net | 2,503,733 | 2,473,903 | |||||
Intangible assets, net | 27,197,853 | 23,262,428 | |||||
Goodwill | 10,655,391 | 10,655,391 | |||||
$ | 243,198,077 | $ | 295,712,888 | ||||
Liabilities and Shareholders' Equity | |||||||
Current liabilities | |||||||
Accounts payable and accrued liabilities | $ | 24,848,092 | $ | 24,713,203 | |||
Deferred revenue | 13,109,111 | 7,003,891 | |||||
Deferred tax liability | 1,030,757 | - | |||||
Lease liabilities | 1,229,177 | 975,844 | |||||
Contingent consideration | - | 863,643 | |||||
40,217,137 | 33,556,581 | ||||||
Lease liabilities, long-term | 1,391,530 | 1,630,837 | |||||
Contingent consideration, net of current portion | - | 705,717 | |||||
Warrant liability | 8,420,300 | 7,696,605 | |||||
Other liability | 500,000 | 500,000 | |||||
50,528,967 | 44,089,740 | ||||||
Commitments and contingencies | |||||||
Shareholders' equity | |||||||
Preferred shares | |||||||
( | - | - | |||||
Common shares | |||||||
( | 768,812 | 768,523 | |||||
Accumulated deficit | (215,273,903 | ) | (145,203,163 | ) | |||
Additional paid-in capital | 407,174,201 | 396,057,788 | |||||
192,669,110 | 251,623,148 | ||||||
$ | 243,198,077 | $ | 295,712,888 |
Condensed Consolidated Interim Statements of Cash Flows (Unaudited) | |||||||
For the six months ended June 30, | 2024 | 2023 | |||||
Cash flows provided by (used in) | |||||||
Operating activities | |||||||
Net loss for the period | $ | (70,070,740 | ) | $ | (58,122,193 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Amortization and depreciation | 5,990,361 | 1,724,634 | |||||
Share-based compensation | 8,605,289 | 5,722,297 | |||||
Non-cash interest expense | 51,888 | 13,487 | |||||
Non-cash marketing expense | 3,000,000 | - | |||||
Amortization on right-of-use assets | 535,930 | 290,863 | |||||
Change in fair value of warrants | 723,695 | 6,842,500 | |||||
Change in fair value of contingent consideration | 1,354,357 | (373,996 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (4,653,134 | ) | (2,102,138 | ) | |||
Prepaid expenses and other | (4,845,637 | ) | (6,681,846 | ) | |||
Accounts payable and accrued liabilities | 155,289 | 10,980,889 | |||||
Deferred revenue | 3,105,220 | 7,486,791 | |||||
Deferred tax liability | 1,030,757 | - | |||||
Operating lease liabilities | (575,345 | ) | (306,116 | ) | |||
Net cash used in operating activities | (55,592,070 | ) | (34,524,828 | ) | |||
Investing activities | |||||||
Purchase of property and equipment | (1,790,891 | ) | (7,684,880 | ) | |||
Purchase of intangible assets | (3,499,502 | ) | (356,779 | ) | |||
Cash acquired in connection with Callin acquisition | - | 1,000,989 | |||||
Cash paid to non-accredited investors in connection with Callin acquisition | (204,846 | ) | |||||
Cash paid in connection with North River acquisition | (3,654,500 | ) | - | ||||
Net cash used in investing activities | (9,149,739 | ) | (7,040,670 | ) | |||
Financing activities | |||||||
Taxes paid from net share settlement for share-based compensation | (788,128 | ) | - | ||||
Proceeds from exercise of stock options | 294,781 | - | |||||
Share issuance costs | - | (40,478 | ) | ||||
Net cash used in financing activities | (493,347 | ) | (40,478 | ) | |||
Decrease in cash and cash equivalents during the period | (65,235,156 | ) | (41,605,976 | ) | |||
Cash and cash equivalents, beginning of period | 218,338,658 | 337,169,279 | |||||
Cash and cash equivalents, end of period | $ | 153,103,502 | $ | 295,563,303 | |||
Supplemental cash flow information | |||||||
Cash paid for income taxes | $ | 146,865 | $ | 16,475 | |||
Cash paid for interest | - | 4,212 | |||||
Cash paid for lease liabilities | 535,930 | 392,141 | |||||
Non-cash investing and financing activities: | |||||||
Non-cash consideration related to the acquisition of Callin | 18,226,572 | ||||||
Class A Common Stock issued to settle contingent consideration liability | 1,404,753 | - | |||||
Property and equipment in accounts payable and accrued liabilities | 863,860 | 2,567,031 | |||||
Recognition of operating right-of-use assets in exchange of operating lease liabilities | 565,760 | - | |||||
Share-based compensation capitalized related to intangible assets | 265,490 | - | |||||
![](https://ml.globenewswire.com/media/ZDA4ZTAzNjctODdiYy00OTc1LWE0NmUtNWIyZDU2NGJlYjUwLTEyNjA5MTc=/tiny/Rumble-Inc-.png)
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