RUM Group Inc.

Welcome to Rumble Inc. Fourth Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Shannon Devine, Investor Relations. Thank you. You may begin.

Thank you, Operator. I'm here today with Chris Pawlowski, founder, chairman, and CEO of Rumble, Brandon Alexandroff, the CFO, and Tyler Hughes, the COO. A press release detailing our fourth quarter and full year 2023 results was released today and available on the investor relations section of our company website. Before we begin the formal presentation, I would like to remind everyone that statements made on the call and webcast may include predictions, estimates, or other information that might be considered forward-looking. All forward-looking statements are made only as of the date of this webcast, and should be considered in conjunction with the cautionary statements in our earnings release and the risk factors included in our filings with the SEC. Future company updates will be available via press releases and company updates via the company's identified social media channels. I will now turn the call over to Rumble's founder, chairman, and CEO, Chris Pawlowski.

Thank you, Shannon. To start, I want to talk about 2023, our building year as a company. In addition to successfully diversifying our content library with several key signings across sports, comedy, and entertainment, we were relentlessly focused on delivering on our product commitments. Let me recap this extraordinary year for our world-class product and engineering teams. First, we completely transformed the user experience on Rumble.com, launching a fully redesigned user interface across all major viewing platforms. while integrating our premium subscription service, Locals.com, to offer more robust monetization opportunities for creators. Second, we acquired Colin in May of last year, which gave rise to the beta launch of our new patent-pending live streaming tool, Rumble Studio, which is an incredible product that will lay the foundation for future monetization. Third, we built and launched Rumble Advertising Center, which we often call Rack. I'm excited to say within the last 90 days, Rack began deploying pre-roll video ads across our mobile apps while we are also expanding our inventory by onboarding other publishers to the network. Fourth, on top of all this, we built the infrastructure necessary to support Rumble.com, laying the foundation for Rumble Cloud, which we publicly launched just two weeks ago. a completely revamped user interface and integration of a major video platform, a novel live streaming tool, an advertising network, and a cloud all in one year. Today, what we have is a beautiful business with four top-of-the-line products. Our team has worked tirelessly around the clock to build the products and services our audience desires. And I'm not only in awe of these products, but the team behind the colossal effort. What we have built is essentially a mini Google. And when you look at how long it took Google to build their offerings and the capital investment required, it really puts everything into perspective. Google purchased DoubleClick for $3 billion. This compares to the Rumble Advertising Center. Google purchased YouTube for $1.65 billion back in 2006, which compares to the Rumble video platform. Google has also invested billions into Google Cloud, which compares to our Rumble Cloud. And by the way, we did all of this with fewer than 250 people. In terms of our expansion into the cloud business, it's important to understand why our business was so well positioned to launch our cloud offering. Since day one, we have not relied on third-party cloud platforms. We've built and subsequently scaled our core video platform, Rumble.com, on bare metal since 2013. It really hit me when Parler got shut down, especially because big tech platforms had more violations than Parler did. But Parler was the only company that had severe consequences. The gatekeeper in this case was the cloud provider, Amazon AWS, who ultimately turned off the lights. Parler had no recourse and had no options to get back online. We realized that building Rumble's infrastructure was existential to our business, so we decided to do it in 2021. This undertaking allowed us to build the full stack, which not only allowed us to protect our business, but also enabled us to enjoy the favorable long-term economics of running our own infrastructure and avoiding being locked in to the unfair pricing of the incumbent hyperscalers. This infrastructure serves as the backbone that powers Rumble.com and has laid the technical foundation for Rumble Cloud. While building our own infrastructure was critical to protect Rumble, it also presented an incredible opportunity to leverage the size of Rumble.com and build out a cloud offering at scale to address a market saturated by customer pain points related to vendor lock-in strategies, unfair pricing, mistrust with data and privacy, complexity, and the acts of censorship. With the launch of RumbleCloud to the public earlier this month, the market now has an exciting new option from a cloud provider who is, first, devoted to protecting a free and open internet and will not turn off the lights for any kind of subjective and arbitrary reasoning. Second, built on the latest generation hardware capable of delivering top network speeds and quality. And third, disrupting the market with our pricing strategy. Our vision is to provide the most predictable pricing to the market so businesses can regain control of their IT spend. Just as Rumble has taken market share from YouTube, we plan for Rumble Cloud to do the exact same in the cloud market, going after the excess profits and revenues at the infrastructure layer, currently cornered by big tech. We are running on the singular highway of the free and open Internet, and it's an uncancellable highway. When big tech goes down, we remain untouched. This position secures Rumble, and by natural extension, our ecosystem of users, creators, advertisers, subscribers, publishers, cloud partners, and shareholders in a massive way while protecting the data independence of businesses. We are offering an opportunity to all companies. To support our go-to-market strategy in the mid-market and enterprise space, we recently announced partnerships with Kinship, a premier leader in managed IT services and solutions with 7,000 employees, allowing Rumble to meaningfully scale and accelerate our go-to-market approach, and ACP Creative IT, strengthening our focus on North America while expanding our offering with a wider range of complementary services and solutions using the cloud infrastructure. While we launch the high-performance compute tiers with dedicated vCPUs, we will expand our offering to include lower-cost tiers with shared vCPUs, which will better serve developers and small businesses. As with all of our products, we will iterate as the market demands, but at this moment, we feel that the medium to large enterprise customers is where significant opportunity exists. Although purchasing decisions for these companies can take time, we are encouraged by the aforementioned partnerships with Kinship and ACP Creative IT and the entry level of interest among mid-market and enterprise prospects. Today, the focus of the company is transitioning from building the products to generating revenue. Now that our products are in full production, we anticipate seeing sequential revenue growth beginning in the second quarter, which much of this revenue growth weighted towards the back half of 2024 as our monetization products begin to ramp. In particular, our confidence in this outlook is bolstered by the strong results we are experiencing in RAC throughout the month of March. The Rumble way begins with the right assets and products. Over the last two years, we have held our core audience of 40 million plus MAUs. And with this audience, we are able to hit our future revenue goals. To this point, it should be noted that our fourth quarter benefited from an outperformance in MAUs due to high-profile sporting events, such as street league skateboarding, which did extremely well, pushing MAUs to $67 million for the quarter. Due to the nature of one-off sporting events, this trend did not continue into the first quarter to date. Today, we have the right products and core offerings fully positioned to scale and start generating incremental revenues. We have the audience to monetize with the appropriate products. And keep in mind, we did this with fewer than 250 team members while ending the year with north of $200 million in cash on our balance sheet. We are competing against big tech on all fronts with the most dedicated team in an enviable market position to drive revenue. I'm the most driven and most excited I ever have been. The team is also incredibly motivated, and I look forward to updating you as our amazing progress continues. With that, I'll turn over the call to our CFO, Brandon Alexandrov.