Quick Summary:
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; our cloud 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; prolonged or escalating trade disputes could materially and adversely impact our business; 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; our recently implemented Bitcoin treasury strategy exposes us to various risks associated with holding Bitcoin; we may fail to comply with applicable privacy laws, subjecting us to liability and damages; our cloud services business operates in a highly regulated environment, subject to a complex and rapidly evolving array of domestic and international laws, regulations, and industry standards governing data privacy, cybersecurity, data localization, and cross-border data transfers; we are subject to cybersecurity risks and interruptions or failures in our information technology systems and as we grow and gain recognition, we will likely need to expend additional resources to enhance our protection from such risks, although notwithstanding our efforts, 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; we have identified a material weakness in our internal control over financial reporting as of December 31, 2024, and if we are unable to remediate this material weakness, we may not be able to accurately or timely report our financial condition or results of operations; 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 online video sharing platforms, other online 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, 2024, and in our other filings with the Securities and Exchange Commission.
Condensed Consolidated Interim Statements of Operations (Unaudited) For the three months ended March 31, 2025 2024 Revenues$23,706,790 $17,733,456 Expenses Cost of services (content, hosting and other)$30,036,174 $31,828,354 General and administrative 16,633,723 9,322,379 Research and development 4,789,111 4,527,792 Sales and marketing 3,638,926 3,296,742 Amortization and depreciation 3,292,709 2,426,142 Change in fair value of digital assets 1,699,416 - Changes in fair value of contingent consideration - 1,336,589 Total expenses 60,090,059 52,737,998 Loss from operations (36,383,269) (35,004,542)Interest income 2,184,286 2,521,952 Other expense (24,604) (69,708)Changes in fair value of warrant liability 21,904,704 (10,737,895)Changes in fair value of derivative 9,700,000 - Loss before income taxes (2,618,883) (43,290,193)Income tax (expense) benefit (31,310) 153 Net loss $(2,650,193)$(43,290,040) Loss per share – basic and diluted$(0.01)$(0.21)Weighted-average number of common shares used in computing net loss per share - basic and diluted 237,051,968 201,904,263 Share-based compensation expense included in expenses: Cost of services (content, hosting, and other)$1,526,580 $388,910 General and administrative 6,284,311 3,975,871 Research and development 626,435 270,872 Sales and marketing 247,477 127,241 Total share-based compensation expense 8,684,803 4,762,894 Condensed Consolidated Interim Balance Sheets (Unaudited) March 31, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents$301,288,166 $114,018,900 Accounts receivable, net 10,427,364 9,778,941 Prepaid expenses and other 5,634,354 12,329,789 317,349,884 136,127,630 Other non-current assets 293,351 402,475 Digital assets 17,400,584 - Property and equipment, net 16,037,543 17,068,076 Right-of-use assets, net 1,512,496 1,753,100 Intangible assets, net 27,873,234 29,306,135 Goodwill 10,655,391 10,655,391 $391,122,483 $195,312,807 Liabilities and Shareholders' Equity (Deficit) Current liabilities Accounts payable and accrued liabilities$18,167,699 $18,223,372 Deferred revenue 12,798,377 12,812,984 Lease liabilities 1,075,887 1,000,643 Derivative liability - 184,699,998 32,041,963 216,736,997 Lease liabilities, net of current portion 484,066 799,910 Warrant liability 18,486,598 40,391,302 Other liability 500,000 500,000 51,512,627 258,428,209 Commitments and contingencies (Note 14) Shareholders' equity (deficit) Preferred shares ($0.0001 par value per share, 20,000,000 shares authorized, no shares issued or outstanding) - - Common shares ($0.
With our balance sheet fortified, significant tailwinds supporting our business, and Tether now closed, we have entered a new era for Rumble.” Q1 Financial Summary (Unaudited) For the three months ended March 31, 2025 2024 Variance ($)Variance (%) Revenues$23,706,790$17,733,456$5,973,334 34%Expenses Cost of services (content, hosting and other)$30,036,174$31,828,354$(1,792,180)(6)%General and administrative 16,633,723 9,322,379 7,311,344 78%Research and development 4,789,111 4,527,792 261,319 6%Sales and marketing 3,638,926 3,296,742 342,184 10% Revenues increased by $6.0 million to $23.7 million in the first quarter of 2025 compared to the first quarter of 2024, of which $4.6 million is attributable to higher Audience Monetization revenues and $1.4 million was attributable to higher Other Initiatives.
