On November 13, 2023, Rumble Inc (RUM, Financial) released its 8-K filing, detailing the company's financial performance for the third quarter ended September 30, 2023. The video sharing platform and cloud services provider reported a year-over-year revenue increase of 64% to $18.0 million, driven by a rise in advertising revenue and licensing and other revenue streams.
Financial Performance Overview
Rumble's advertising revenue saw a $2.3 million uptick, attributed to increased consumption and the introduction of new advertising solutions through the Rumble Advertising Center (RAC). Licensing and other revenue, which includes subscriptions, licensing creator content, tipping, cloud, and platform hosting fees, contributed an additional $4.7 million to the revenue growth.
However, the company's operating expenses also saw a significant increase. The cost of services, which encompasses content, hosting, and other services, surged by 224% to $39.8 million. This rise was primarily due to programming and content costs, which increased by $26.1 million. General and administrative expenses grew by 239% to $9.7 million, with staffing-related costs, share-based compensation, and other public company-related expenses contributing to the rise. Research and development expenses increased by 196% to $5.1 million, and sales and marketing expenses rose by 118% to $3.2 million.
Liquidity and User Engagement
Despite the increased expenses, Rumble maintains a strong liquidity position, with cash, cash equivalents, and marketable securities totaling approximately $267.0 million as of September 30, 2023. The company also reported robust user engagement metrics, with 58 million average monthly active users and an average estimated 10.7 billion minutes watched per month.
Rumble’s Chairman and CEO Chris Pavlovski expressed optimism, stating, "We are seeing the fruits of our labors, and our focus remains on monetization and a pathway to profitability."
Forward-Looking Statements and Conference Call
The company's press release included forward-looking statements regarding expectations for future performance and key performance indicators. Rumble will host a conference call to discuss its quarterly results and has scheduled an interview with Chairman and CEO Chris Pavlovski to further elaborate on the company's direction and strategy.
Conclusion
Rumble Inc (RUM, Financial) has demonstrated a strong revenue performance in the third quarter of 2023, with significant growth in user engagement and advertising capabilities. However, the company also faces challenges with rising operating expenses. Rumble's strategic focus on monetization and a pathway to profitability, along with its solid liquidity position, suggests a commitment to long-term growth and financial stability.
For more detailed information on Rumble Inc's financials and strategic outlook, investors and interested parties are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from Rumble Inc for further details.
