RUM Q1 Earnings Call: User Retention, Creator Monetization, and Wallet Launch in Focus

Video sharing platform Rumble (NASDAQGM:RUM) reported Q1 CY2025 results beating Wall Street’s revenue expectations, with sales up 33.7% year on year to $23.71 million. Its GAAP loss of $0.01 per share was 90% above analysts’ consensus estimates.

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StockStory’s Take

Rumble’s first quarter results highlighted significant improvement in user retention and audience monetization, according to CEO Chris Pavlovski. He pointed to an 87% retention rate for monthly active users (MAUs) compared to the prior post-election cycle, attributing this to recent investments in Rumble’s video platform and product enhancements. Pavlovski noted, “Our user retention in Q1 greatly exceeded the previous post-midterm election cycle, something our team was laser-focused on accomplishing since Q1 2023.” The company also reported progress in diversifying its revenue streams, with increased subscription revenue and new advertising partnerships. Management emphasized the importance of these operational gains as foundational to Rumble’s ongoing growth strategy.

Looking forward, Rumble’s management is prioritizing the launch of the Rumble Wallet in partnership with Tether, targeting a Q3 rollout to support creator payments and international monetization. CEO Chris Pavlovski described the wallet as a “gateway to monetize international markets,” noting that localization efforts and ongoing discussions with crypto exchanges are underway. Management anticipates that the wallet will drive major user growth and expand revenue opportunities, particularly for creators preferring crypto payments. Additionally, CFO Brandon Alexandroff highlighted continued investments in Rumble Cloud and a focus on cost discipline, stating, “We continue to expect to move materially towards adjusted EBITDA breakeven in 2025.”

Key Insights from Management’s Remarks

Management attributed the quarter’s performance to better user retention, growth in advertising partnerships, and investments in product development, while one-time payroll costs impacted expenses.

• User retention improvement: Rumble achieved an 87% retention rate of monthly active users following the U.S. election cycle, up from 60% after the prior cycle, reflecting improved product engagement and feature updates.
• Advertising partnerships traction: The company secured new brand campaigns with Netflix, Crypto.com, and Chevron, signaling a shift as larger advertisers begin to engage with Rumble’s platform after previously cited industry headwinds.
• Product diversification: Rumble advanced its core offerings—Rumble Video, Rumble Ads, and Rumble Cloud—while also preparing to launch the Rumble Wallet, broadening its ecosystem and revenue potential.
• International and crypto focus: Management sees the Rumble Wallet as critical to monetizing international markets, aided by localized content and integration with crypto exchanges. This initiative is designed to appeal to both creators and the global user base.
• One-time expense impact: Operating expenses increased due to a one-time executive departure and payroll tax events related to the Tether investment, with management emphasizing these were not recurring items.

Drivers of Future Performance

Rumble’s outlook centers on expanding its international presence, accelerating creator monetization, and progressing toward adjusted EBITDA breakeven through new product launches and operational discipline.

• Rumble Wallet launch: Management expects the Q3 debut of the Rumble Wallet, built with Tether, to open new monetization channels by enabling crypto payments for creators and users, particularly outside North America. The wallet is also positioned to compete directly with established platforms like Coinbase.
• Brand advertiser pipeline: Leadership anticipates that recent traction with major brands will lead to additional advertising partnerships, which could support higher audience monetization and stabilize revenue beyond cyclical political events.
• Cost management and investment: The company is balancing investment in core products and international expansion with a stated goal of moving toward adjusted EBITDA breakeven. Management cautioned that while investments will remain elevated, cost discipline is a priority, supported by a strengthened cash position from the Tether transaction.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will monitor (1) the adoption and monetization impact of the Rumble Wallet, (2) the growth and retention of both creators and users as international markets come online, and (3) the ramp-up of new brand advertising partnerships. Progress in these areas, along with further cost discipline, will be key to Rumble’s trajectory toward profitability.

Rumble currently trades at a trailing 12-month price-to-sales ratio of 21.9×. In the wake of earnings, is it a buy or sell? See for yourself in our full research report (it’s free).

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