Foreign, Foreign foreign. Thank you Foreign Hey hey hey, what is going on I Hope you are watching this live. If not, you probably already know the results. but we are about to get Rumbles first earnings announcement. We already have the report I'll quickly be going over that but the first announcement ever since this back deal went through and man oh man. I Have to admit I am excited because I'm looking at my own numbers as a content creator on Rumble and they are crushing it. So I'm excited to see what the CEO Chris Pavlovski really has to say before we get into this couple important things: Numero Uno I am invested in Rum. This has nothing to do with me being on the platform whatsoever. I Just think it's a good investment I Want to make something explicitly clear: This is not an active trade I'm not holding it for a day, a week, a month, a year or anything like that. I will be invested in this thing for the long run. So whether we go up or down, it might be exciting. It might be a little bit sad I Don't know, but in the long run it really doesn't matter to me. if it pops great, we'll all celebrate together and if it goes down, I'll most likely end up just buying some at support if I can get it in on a juicy juicy discount. So that is number one. I Just want to be as completely straightforward with you as I possibly can number two. Obviously, if you enjoy this type of content, especially if you're a supporter of Rumble and or invested in rum or anything like that, don't forget to like And Subscribe and Number Trace. If you're looking for a place to potentially get rum, a brokerage that you know, like actually cares about their clients. No payment for order flow. No market makers anything like that. The amount of financial gurus that I currently see on YouTube are Hawking Things like Robin Hood and Weeble and MooMoo I Just don't get it because they are not for you. They engage in payment for order flow. They are actively working against you selling your order flow to the likes of Citadel Security Virtue Anything like that. It's actually disgusting. So check out public. it's pinned to the top of chat. It's in the description of video. all that good jazz. But with all that out of the way, let's switch it right up to what we have going on now because the earnings call is going to be starting in about 10 minutes. Once again, if you're not watching this live, feel free to just hit it with a little bit of a fast forward and we'll switch this up. So this just dropped. This was the filing with Rumble to the SEC Rumble announces record Third Quarter 2022 Financial Results: The revenue increased 430 percent, average monthly active user increase 97 They launched in in-house ad platform successfully completed a Dspac. This is the first earnings announcement and the first earnings report that you're reading ever since it all went through. Check this out: The monthly active users went up 97 to 71 million a company record compared to 36 million in the third quarter of 2021.. they basically doubled in size year over year. Of the 71 million, 57 million were based in the US and Canada compared to 25 million in the US and Canada during the third quarter of 2021. Huge huge growth. Um, the average minutes watch per month increased 14 hours of uploaded video per day increased 220 percent. I mean every number is just higher and higher and higher. Added new creators who will provide exclusive content. Glenn Greenwald Steve will do it Viva Frey Uh, Russell Brand I Mean these are all big names that if you've ever been on Rumble, you've definitely seen their names. But overall, the initial release here I mean all the numbers are just gigantic big numbers. Now, please remember this is an early company. Uh, obviously it's not pre-revenue but it's in the game of expanding its brand recognition globally and a lot within the US. So the main thing? The way. we would commonly sit here and do the earnings breakdown of larger companies. Okay, what's the EPs and the revenue? Yes, that's obviously important here, but remember, they are in their growth phase. You kind of have this incubation phase, then you have a massive growth phase, and then you're hopefully getting to the level of being kind of a technical video. Giant And it's a little bit of a different I guess Viewpoint from the market Collective would be the fairest way to put it. So right now I'm not the most I guess concern with the revenue versus loss and that type of a thing. Obviously you want the revenue to get more and more and more, but for me as an investor within Rumble The main thing I'm looking at is quarter over quarter. Are you getting more popular? Are there more creators and the way you can measure that? Is there more content being uploaded? What's the viewership? Like what's going on with ads? Those are the main things I'm looking at now because it's an early company and I mainly care about this user growth because later on down the line this is like such a common play in the world of tech and really video companies is you get that giant usership base and then you figure out how to monetize them so we're early on. So I don't know if this is necessarily an Apples to Apples comparison with like Okay, well hang on. This is exactly the numbers we got at YouTube Remember YouTube has like a decade lead on Rumble so a little bit different as of now. just so you know Rumble in post Market Ever since these numbers came out, pretty pretty solid up 5.5 Currently training at twelve dollars and thirty cents just for a little bit more of transparency I Publicly told everyone I got invested. My average is closer to 950, but once again, it's not an active trade I'm gonna be in this one for the Long Haul and if I do do any active trades, it's gonna be around the line of maybe like selling some covered calls or selling some puts to collect the premium. Something like that I'm not actively trading the stock I'm not buying and then selling or shorting and then buying back or anything like that I'm buying stock and then if I do anything I'll buy more but I might be a little bit more active in with options, but once again, just for the sake of transparency. As of right now, we're going into this earnings call. Um, I I have no active options positions whatsoever. Uh, just so everyone knows what in the world is possibly going on Now we have a couple minutes until Chris comes on the line. Chris Pavlovski the CEO Let me actually see if he has recently said anything Chris Pavlovski Let's see if we can find his Twitter or if Rumble has said anything. uh Chris Pavlovski. The fact that he's not verified blows my mind. Uh, okay, where are we? Uh, I'll be having my first public earnings call at 5 PM ET today for rumble. All right Then let's see what Rumble has said. If anything, I want to just get us all ready. Okay, breaking news: This was 46 minutes ago, probably right when Rumble started to pop in post-market training Rumble Announces record third quarter 2022 Financial re Results: Revenue increased over 430 percent to 11 million compared to Q3 in 2021 and 150 compared to Q2 2022. So year over year of 430, but quarter recorder up 150. That is very, very impressive. Average global monthly active users a metric that I very, very much care about. Uh increased to 71 million and obviously that's just average. So I'm sure. uh around. like the election days and things like that, we probably saw inordinate spikes. Uh, obviously this is a company record. Hours of uploaded video was almost nine thousand, eight thousand, seven hundred, ninety six compared to 2746 in the third quarter of 2021. That's crazy. That is a crazy increase. 221 Min Uh. percent excuse me And then the minutes watch per month up 14 Things are exciting. Uh I'm very excited I'm hoping that not only I want a little bit more of a detailed breakdown of what these numbers mean in terms of the leadership's eyes like the C-suite of like where do they see Improvement what are they happy with? what are they unhappy with, but also with these types of calls. especially with this type of a platform. this type of a company, you never know if there's just going to be some big announcement like I literally have no clue if they're going to be announcing I don't know other big creators potentially joining or just something so completely off the wall that I couldn't even come up with it right now. So that's really what I'm listening for is essentially I want to know if there's going to be some off-the-wall announcement that maybe just none of us thought of whatsoever. Whether there is some sort of new Business Partnership a new partnership with some other big Creator maybe they poached someone off of Twitch or YouTube I have no idea. All I know is that the sky is very much the limit now just because we are a couple minutes out. The one thing I wanted to show to you. so this is the corporate Rumble presentation. You can find this on their website. so this was Q2 2022 and the blue line obviously the green line is Rumble the Blue Line uh, adjusted for time appropriately is Tick Tock and you can see and especially if we were to plot out the newest numbers right now. Obviously, past performance is no indication of where we're going in the future, but that growth trajectory is in line with Tick Tock which right now literally dominates. It's a piece of socially created malware in our brains that's the domination of tick tock and Rumble is on par with that. To me, that's crazy. We're kind of like roughly in this zone right about here, but hey, we are tracking well and I'm just excited to see how this keeps going. Uh, very, very excited. So with all that being said, I have up the rumble chart right here. Obviously the rum chat's above my head one more time. just as a friendly, friendly reminder to all of you. If you haven't already, don't forget to like And subscribe on both Rumble and YouTube. I Really like being on both because anyone in the world of Finance is going to tell you that if you're doing this type of a thing in anything related to money, do you want to de-risk the situation And to me simply being on something such as YouTube which is known to censor people for crazy, unrealistic reasons, That's a big risk. In fact, I've been terminated three separate times off of YouTube so very, very happy to be on something such as Rumble. Maybe Rumble's not exactly your cup of tea personally. I like it I See all the viewers over there? they seem to really, really like it. but if it's not yours, that's exactly why we do it on a multiple platform type of a deal. So every single day posting content simultaneously to both Rumble and YouTube and some of the videos like I'm more in the world of streaming. if this is your first time meeting me, hey hi, I'm Matt Nice to have you here. Welcome to the Goonie! Club Anyway, um, if we post videos, they ended it and actually end up getting dropped first on Rumble Just so everyone knows. as we're about to get into it, a final shout out to our sponsor public: No Payment for order flow No market makers A broker that like cares about you opposed to some like I don't know shoddy broker that will happily sell all of your data to some sort of Market maker making them billions and billions and billions and no one has any qualms with that. Which always blows my mind. so it looks like we are one minute out and with that 60 second warning, let me make sure I have the earnings call where it needs to be. do I have the volume up I think so. All right, the volume should be up. I'm going to reload the page. um I would like to get everyone else's thoughts on. We're about to hear what do you think is going to go down. What is your prediction for what is about to happen? Uh I have to tell you that I'm actually pretty excited to find out what is happening, what's not happening I Just hope some bomb shelving announcement is made and this thing rips to Kingdom Come I Mean what a pop in post-market training would love to see you break Above This 13 level on the daily chart. There's big resistance at 13.50 Uh, and some of the old school investors in here might refer to this like it's range bound, but maybe you've heard of like a Darvis box. So it's just range bound, the bottom 11, the top 13.50 A break above it would be bullish. A breakdown below it in the short term would obviously be bearish. So I'm hoping we get something exciting announced and we break above this wall at 13.50 but we will find out soon enough here. I'll switch it over to the one minute just so we can see some of the really exciting stuff. I'll zoom in there and I think we're starting. Uh, very, very shortly. Hang on. let me get this up. Let me get this up. Then we'll move this over here. All right. We got some music in the background, some weird elevator music that I probably can't play for you because of copyright issue, but we are going to be starting any minute. any minute, any minute, any minute. Let's go. Let's go. Let's go. Well, while we're waiting for it to get going, you can't hear. yeah, it's just elevator music. and honestly, if I play the elevator music right now, uh, it'll this stream will probably get taken down for like Dmca stuff. All right. what's everyone's thoughts? as we're just trying to kill a little extra time right now, let me turn on the Moon Man Get the moon nice and bright back there. Uh rum to the Moon What's that? Everyone else's expectations? Smash that Rumble button matte play going to the Moon I wish I got I Guess we could No because I have the other music and that one will dmcas I I can't like turn on one audio Channel but not the other I'm sure I could I just have no idea how to do it. Uh, Rum short interest. All right. we'll look that up. We'll look up. Everything was listed on the NASDAQ short interest. So heading into this utilization a hundred percent. This is for Rum the cost to borrow 349 and the short interest is two percent. Which tells me that they're miscalculating how many shares are part of the free flow because when you see this type of cost to borrow in this type of utilization I Think there's like a kind of a misunderstanding of how many shares are out there because you don't see a hundred percent utilization and it costs to borrow a 350 percent and a short interest of this small. So it seems like it's a miscalculation on how many shares outstanding they are because like these numbers are gigantic. A cost to borrow of 350 that is wild. and maybe just maybe depending on what is or isn't announced, they might get smoked. The music just stopped. Are we starting and what? Rumble Third quarter quarter and only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad as a reminder this conference is being recorded. It is now my pleasure to introduce your host. Shannon Devine Investor Relations for Rumble. Please go ahead. thank you operator! I'm here today with Chris Popovsky founder chairman and CEO Rumble Brandon Alexandra our CFO and Tyler Hughes our CEO A press release detail in our third Quarter results was released today and is available on the investor relations section of our company's website before we begin the formal presentation. I'd Like to remind everyone that statements made on the call and webcasts may include predictions, estimates, or other information that might be considered for bookies. All four of the food statements are made only as of the date of the webcast and should not be considered in conjunction with a cautionary statements in our earnings release and the risk factors included in our filing for the SEC Future company updates will be available via press releases and via the companies identified social media channels. I Will now turn the call over to Rumble's founder, chairman and CEO Chris Powski Hello, thank you! Shannon As many of you are aware, we recently completed our Dspac or merger with Canter Fitzgerald Acquisition, Corp Six or Cfbi. I Have been an entrepreneur bootstrapping businesses in this space for over 20 years and I'm excited to be speaking with you today as the Chairman and CEO as well as the founder of Rumble The Public Company. I Want to begin first with our mission rumbles on a mission to protect the free and open internet, to celebrate freedom to support creative Independence and authentic expression to provide a form for diverse ideas, opinion and debate to build technology immune to cancel culture. But make no mistake about it, protecting a free and open internet is not easy. This means hard decisions. It can mean unpopular decisions decisions that may not follow mainstream thinking. but that's precisely the point. There was a time when we celebrated freedom of expression which led to amazing moments in our society: Women's rights movements, civil rights movements transformative Sciences The list goes on, but this is at risk of being stripped away from us. Stripped Away by big Tech censorship in corporate agendas Rumble Will not stand for this. this is a fight for Freedom The mission is not a sticker on office walls next to slides in free food. This this is the DNA of Rumble This is our Focus This is our opportunity. Looking back at the founding year of Rumble in 2013, the concept preferencing was simple. It was Big versus small at that time. I Noticed that YouTube was beginning to give preferences to large creators, influencers, multi-channel networks and Brands while leaving the small crater behind. So I founded Rumble based on the premise of providing small Creator the tools and distribution they needed to succeed. Fast forward to 2020. We entered a new, much more nuanced world of preferencing which included sophisticated algorithms used by Big Tech incumbents, amplification and censorship. Most importantly, we never move the goal posts on our content policies. This sparked a massive first wave of growth on Rumble and every day, more and more creators and their audiences find a new home on Rumble How many more? Well to put this movement into context, in the second quarter of 2020, we posted about 1 million average monthly active users. today. for the third quarter of 2022, we posted an average of 71 million monthly active users. That's 70 times growth in just two years. Why? Because our community trusts that Rumble will stand by our mission unlike Big Tech Moving on to why I'm speaking to you today: This is the first time as a public company, we are reporting quarterly results in our very first earnings call. The transaction that brought us to the public markets on December 1st, 2021 was an announced merger with Cfbi, a special purpose acquisition company. or SPAC the positioning Rumble for a successful Capital raise was one Catalyst to go public. The second was putting ourselves on an equal playing field as our public comps. If we're going to take on Big Tech, it was imperative to get the public behind us. and this included participation in the public markets. A bonus was the opportunity to allow our supporters to become co-owners of the company. One of the top inquiries we received prior to this announcement was how do I invest in Rumble While the process took a bit longer than expected, we are encouraged by the successful business combination and as part of this transaction in previously reported, we maintained nearly all the cash and Trust as part of the Dspac. Ultimately, 99.9 percent of Cfbi Shoulder shareholders elected not to redeem their shares which is unprecedented in the current market environment in and is a validation of Rumble's support by the public markets. As a result, the Dspac provided Rumble with gross Prius proceeds of 400 million dollars prior to transaction expenses. We successfully completed the Dspac and began trading on the NASDAQ Stock Exchange September 16 2022 under the symbol Rum R-u-m Moving forward, it is all about execution for Rumble. This execution is directly tied to our mission because the opportunities that fuel our growth strategy are all possible today because of our principles in our S-force S4 Filing with the SEC we explained our growth strategy I Would like now, like to walk you through how we have executed against each of the main pillars described in that document with a focus on the third Quarter results first content acquisition a critical piece of our growth strategy. The objective here is to grow and diversify our content by onboarding Major creators in new content verticals in thus attracting new audiences to drive user growth and engagement. While our initial wave of growth was primarily from the conservative Community today, we are clearly expanding Beyond Conservative Politics in attracting new audiences through agreements where we provide incentives to Major content creators who will produce exclusive content for Rumble. Most recently, Q3 2022, we announced Rumble exclusives which include two significant signings: comedian and actor Russell Brand in Pulitzer prize-winning journalist Glenn Greenwald both of whom will produce daily live shows on Rumble and Locals. We are really excited about this format where these creators will share their unfiltered perspectives on current events every day. on Rumble In follow-up each show with a unique to what two-way Q A style conversation on locals, we also began to expand our audience to the Gen Z demographic by signing one of the most influential Gen Z Personalities in the world Steve Will Do It who moved to Rumble and Locals as his primary video platform. Finally, we're also excited about Viva Frey an accomplished attorney and well-known live streamer who dropped YouTube and signed an exclusive deal with Rumble. These are great examples of how we are able to onboard Mega influencers to enter new content verticals, attracting new creators and audiences as we execute on our strategy. Our Content Library continues to grow. in Q3 2022, We are pleased to say we have increased our average hours of uploaded video per day to 8796 hours from 2746 hours in the third quarter of 2021, which is an increase of 220 percent. With new content on the platform, we continue to see the audience follow suit in Q3 2022. As I mentioned, we posted an average monthly active user count of 71 million users globally, which is nearly double our 36 million users in the third quarter of 2021. 57 million of these 71 million users are based in the US and Canada compared to 25 million users in U.S and Canada in the third quarter of 2021. Meaning, we have a large opportunity to grow users and content via International expansion and we see an uptick in users when large creators are onboarded onto the platform. In general, I Believe the size of Rumble's North American North American users is one of the most valuable pieces of our business and also the most overlooked. Finally, on a year-over-year basis, our monthly average minutes watched performance indicator increased 14 to 9 billion. As a note, we expect that our three key operating metrics monthly active users or Maus average Video hours uploaded per day in monthly average minutes watch to grow at a different rates as we continue to diversify our content in audience due to the different content types, viewing format preferences, and varying attention spans between demographics. Another key piece of our growth strategy is product development. It is our goal to build Market leading products across web mobile apps and TV apps for Rumble and Locals. However, we recognize we have a lot of work to do with the recent Capital Raise Secured. We are now focused on scaling our product and Engineering organizations to build up capacity. To date, a substantial portion of our resources has been devoted to building out the Rumble advertising Center or Rack in Rumble's hosting infrastructure, both of which have made great progress on. But as a result of this focus and investment, we are not quite where we would like to be with Rumble's Web mobile and TV apps. We are encouraged by the initial feedback on a Rumble iOS and Apple TV apps which we launched earlier in the year and we are now focused on rolling out this new UI Ux across all available formats including the web and the remaining set of T of applications on mobile and TV. The more modern design is a big step forward for Rumble and we will set the foundation for future releases as we ramp up our product to Market leading quality In terms of locals, we continue to make strides in what we believe to be the best subscription product on the market. In the third quarter of 2022, we significantly bolstered our creator toolkit on Locals with three new features. First, we launched an article publishing feature that offers a new way for creators to engage their Community while also allowing us to recruit new category of creators for locals to drive subscription. Revenue Second, we announced the full launch of content Plus for all Communities, which offers another source of revenue for creators who wish to offer one-time content for purchase such as documentaries, movies, and other on-demand content. Finally, we announced the launch of Live Tipping To All Communities which offers a third Revenue stream for creators on locals in addition to subscription and content. Plus The third element of our growth strategy is to build an in-house advertising ecosystem. When we think about monetization on Rumble and locals, we view it as a funnel. At the top of the funnel, we have Rumble where creators grow their fan base and we generate revenue from programmatic ads such as display and free roles, sponsorships or host red ads which we envision as the biggest bucket And finally, tipping. At the bottom of this funnel is Locals where creators bring their super fans and we generate revenue from subscriptions, on-demand purchases, and tipping. Building the tools for monetization of programmatic and host red ads will be a major Focus for us as we move into 2023.. historically we've we have used several third-party ad networks and AD exchanges to fill our ad inventory by developing our own advertising. Marketplace In direct sales team, we can reduce value leakage to exchanges, expand or advertise Advertiser base and drive better monetization. We are excited to say that we have made tremendous progress on our new ad platform. Rack In Q3 we announced the beta launch of Rack for display advertising which has gone extremely well in terms of system performance and initial Advertiser Demand with video ads launched in October The foundation for Rack will be established as we continue to roll out the system and subsequent features for programmatic advertising. We'll build the sales and marketing organization and look to a ramp awareness and monetization of the Platforms. In addition to traditional programmatic ads, we've also made significant strides with host red ads and Q3 Q3 which is reflected in the financials. This is a category we are very excited about. While we are in the infant stages of establishing this Revenue stream, we have been building out Host Red ads as a product alongside Banner in video display on Rack. In the future, we feel Banner Video and Sponsorships will provide advertisers with the compelling set of options to access and get in front of the rumble. Community A community that we think is extremely valuable. This leads me to our Cloud opportunity. You may ask why Enter this: Market There are three key reasons. First, our mission: protecting a free and open internet doesn't happen at the application. Level Like Rumble it must happen at the infrastructure level. We all know what happened with Parlor in AWS Two Opportunity Businesses are very aware of what happened with Parlor. We have had many unsolicited inquiries about Rumble Cloud in subsequent conversations. In general, we feel that businesses will seek Cloud offerings immune from cancel culture in the same way that users and creators found. Rumble for Video Three Competency: As a video company, we have enormous bandwidth, encoding, and storage requirements. And because of this, Rumble is an ideal vehicle for us to scale capacity and serve the market. To date, we have demonstrated our initial competency in this space by offering cloud services to the Truth Social Platform in Q3 We continued to make strides on our infrastructure and prepared to move Rumble in locals fully onto Rumble Cloud as we head into 2023, our Focus will be to continue building out scale and enter our beta program where we refine the product and get ready for full commercial release. In terms of operations, When considering the infrastructure in businesses we have built, many people also fail to appreciate that we built this company on very little investment. Everything we've accomplished to this point of merger with Cfbi, Cfbi has been on the heels of raising our first outside Capital 50 million dollars in 2021, of which we've still had 33.5 million on our balance sheet as of June 30th, 2022..

wow The end of our last fiscal quarter prior to closing the merger with Cfbi as this as demonstrated by the current capital Investments To date, we have been able to accomplish so much unlimited capital resources due to our innovative business model, our brute strap investment mentality since Inception, and our ability to attract highly talented people with a mission-driven mindset. This is a framework we intend to hold on to as we continue to grow. Turning to our quarter's Top Line re-reported revenues of 11 million dollars for the quarter another company record and this was largely driven by our ability to tap into Advertiser potential sooner than anticipated and turn our Focus towards monetization. That's more than a 430 percent increase when you compare the figure to 2.1 million for the same quarter a year ago in a hundred and fifty percent increase on a sequential basis. I Will let Brandon touch more on our financial results shortly. To conclude: I believe our third quarter quarter numbers speak for themselves. There has been so much doubt surrounding the audience of Rumble and I hope today. That one thing is evidence evidence our audience is the opportunity here, the opportunity that others have turned their back on. We are beginning to monetize in our third quarter revenues, our early validation of the value of our audience exceeding our growth expectations. internally. importantly, this growth was achieved with little Capital deployment. This is just the beginning at Rumble We believe that our mission is opening doors to a new ecosystem with enormous potential. I'm excited to go through this next chapter together and build an amazing business. I Don't want Rumble to lean in any direction I Want Rumble to be neutral as we expand on this opportunity. One thing is for certain, our mission creates an enormous opportunity for us. It does not limit us I Look forward to this journey with everyone here today and I hope one thing is evident: We have made substantial progress executing our mission and this is reflected directly in our third quarter results. We are well on our way to delivering on our commitments I Look forward to onboarding great talent to our platform, focusing on our monetization efforts, and ultimately delivering value to our shareholders. With that, I'll turn the call over to our CFO Brandon Alexandrov thanks Chris I'll take you through our financials at a high level before turning the call over to the operator for Q A. As Chris mentioned, from a top-line perspective, we reported quarterly revenues of 11.0 million dollars for Q3 2022. This compares to 2.1 million a year ago. While we expect revenues to continue to grow, Revenue levels for the foreseeable future will remain somewhat unpredictable as we continue to build out our infrastructure and experiment with various monetization levers to support our Top Line growth I Want to caveat our Top Line growth by saying that there's still plenty of work ahead of us. As we boost our advertising platform capabilities, we expect our revenues to continue to be a bit unpredictable. This is largely the reason why we, as a company, do not provide top-line Revenue guidance and do not intend to provide Financial projections of any sort in the near future. Well, we have ex. Well, we have expectations. internally. We are mindful that as we grow the business and develop different monetization streams, we expect significant variability. Cost of revenues for the quarter were 7.4 million dollars compared to 1.8 million a year ago. As we grow, we expect our cost of revenues to increase. The year-over-year increase was primarily due to an increase in Creator and publisher payments of 4.2 million as a result of higher advertising revenues and an increase in hosting expenses of 1.4 million due to higher consumption and costs associated with the growth in cloud and Professional Services Moving through our expenses GNA for the quarter was 2.5 million dollars compared to 646 000 in the third quarter a year ago due to approximately 1 million in Staffing related related costs and 1 million in additional administrative expenses consistent with increased costs associated with becoming a public company, we reported R D expenses of 1.7 million dollars for the three-month period, a year-over-year increase of 1.4 million again due to an increase in Staffing and administrative expenses. Looking at our sales and marketing expense, our third quarter reflected our initiatives and investment in content acquisition, resulting in the increase of 5.8 million dollars due to a 4.9 million increase in costs related to incentivizing top content creators to promote and join our platform, and roughly one million dollars split between additional Staffing costs and marketing and PR initiatives as a result of the items I just reviewed Lots from operations for the third quarter of 2022 was 7.8 Million compared to 1.6 million in the prior year. I will now speak to our cash position: gross proceeds from the recently completed SPAC transaction were approximately 400 million dollars, including approximately 300 million from cash held in trust, 83 million from the pipe financing, and 15 million from the forward purchase investment. As Chris mentioned, the Dspac provided the company with nearly all of the cash in trust due to Total redemptions of 0.1 percent. Year-to-date costs associated with the transaction were 53.9 million as a result of the transaction combined with cash on hand prior to the transaction. As of September 30th 2022, we had 356.7 million of cash on our balance sheet. Also, to reiterate what Chris said earlier, a relatively small cash burn. between raising our first rounds of external capital in 2021 50 million and the end of Q2 2022, 33.5 million reflects our lean operating mentality. We will rigorously adhere to this mentality as we apply more resources to our growth opportunities. Lastly, before I turn the call over to the operator to Aid everyone's analysis I'd like to give a high level overview of our share count as of September 30th 2022, which is featured in the press release. there are 375 million shares outstanding on an as converted basis, including approximately 279 million of common stock and approximately 96 million options with varying strike prices, warrants, and restricted stock units. Of the 375 million shares outstanding on an as converted basis, 107 million have been placed in escrow and will be released upon the satisfactory of the earn out conditions. These share figures exclude approximately 106 million multiple voting shares held by our founder that do not have economic benefit. I'll now turn the call over to the operator to open up the line for questions. Ladies and gentlemen, as this time we will be conducting a question and answer session. If you would like to ask a question, please press Star One on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Ladies and gentlemen, we will wait for a moment while we Poll for questions. While we're waiting, this question comes from the line of Thomas Forte from D.A Davidson Please go ahead. Great! So first congrats Chris and team on the DSP backing! I'm very excited that Rumble's now public. I Have a couple questions You? You talked about a lot of these during your prepared remarks. Um, so first off, we've done an amazing job building scaled audience in a very short period of time. So now we're looking at your efforts on monetization. You talked a lot about those efforts in your prepared remarks. So I Guess the first question is when you put together your advertising, e-commerce your subscriptions, your tipping. Um, how are you thinking about essentially building things from scratch, creating new initiatives, or leveraging kind of industry best practices? And is there any reason that, uh, when the efforts fully mature, your margin on those initiatives would be any different than those of your peers. Thank you. Tom This is Chris speaking Uh, so when it comes to the monetization I I think that you know our growth in the last quarter kind of speaks for itself and uh, really kind of set things into motion for our team to really focus on monetization. We thought we were going to focus a lot more on growth, but that kind of came to us in the last quarter. all kind of uh, just by Word of Mouth uh and where we kind of landed up ended up here with the with rack is you know we're all kind of familiar with programmatic advertising or but we're not so familiar with the sponsored advertising and from what we're seeing in in Q3 that that is an enormous market for us. Uh, and it's something that we want to focus very heavily in. We we think that there is a lot of ability to scale this and build uh the sponsored posts with our creator community and give them a marketplace where they can access and be able to do that. and when it comes to comparing that to the competition I Don't believe the competition has as anything like it. So I think we're going to be trailblazing a new path to revenue for creators when it comes to sponsored posts. The programmatic part is great. It's gravy, it's great for the crater economy and it's doing very well as we've launched Rack. But the sponsored post is something that I'm very excited about for for 2023. And then obviously, when. uh, the bottom of the funnel that I speak about is the locals portion subscription and tipping. Um, that's that, that's out there. But I I don't think there's there's a company that does it as well as locals. So the combination of locals at the bottom of the funnel, the sponsored posts, which is very unique to this market and the programmatic should give us a real Competitive Edge against the competition when it comes to the Creator economy. I Hope that answers your question. it's absolutely all right and then high level on the cloud computing front. Um, should we think of this as something that's going to, um, mature faster, slower than the ads e-commerce descriptions of the Tipping How on a relative basis might we think about the development of the cloud computing? So yeah, we've made a lot of progress. We've tested a lot of stuff. obviously getting up Truth Social was an enormous feat. It demonstrates the capacity, the competence of the team to be able to really throw up private cloud and get that running. Um, and we've made enormous progress on migrating a lot of Rumble onto there and now even locals. So we're moving on all fronts of that. Obviously, the growth that we saw was uh in the last quarter was significantly more than we we anticipated internally, so it really stretches our systems. Um, but we're we're on Pace Uh and we love the growth because it just pushes us further and we're on Pace of what we we believe for a late 2023, um beta launch of uh of the public Cloud uh for for customers so everything is on track on that front and uh, if anything, I believe that uh, we're really pushing 23 a year. Really kind of testing our system out in the last quarter and obviously with the onboarding of Truth in a way that that we didn't quite foresee. which is an amazing thing to really set us up for 2023 and building out something real robust that's real, scalable and uh, really resilient. Great. So the follow-up to that one Chris you talked about in the past about the advantages of building a cloud computing business on essentially a video platform. Um, can you for those who may not be familiar with what you said about that, can you repeat your comments Because I do think it puts you at a real Advantage long term as you build your cloud computing business. Yeah, it is of my belief that when a video company as is at an extreme Advantage uh in the cloud business, when you look at Google Cloud they have YouTube when you look at Amazon they bought twitch um in when you when you really kind of unders try to understand uh why these are helpful to the cloud businesses Uh, a video A video company pushes extremes amount, extreme amount of bandwidth, an enormous amount of encoding, and it has an enormous amount of storage this this creates you know, obviously a real a real good vehicle to enter the market. So Rumble Being a video company is like the perfect vehicle to enter the cloud. Market Because we're going to have enormous capacity and storage bandwidth encoding processing power Etc and the more that you peer with Uh with isps, it drives down pricing and you're you're able to compete in in a way that uh, a typical company would not be able to compete. So I believe having Rumble as the consumer vehicle is is the real real competitive Advantage For us to enter this Market along with the fact that the market is really Desiring something like Rumble not just on the video side but the cloud side, it is super apparent. We can all see it. that same sentiment that you're seeing at the rumble uh at the rumble consumer side you're seeing with universities you're seeing with potentially governments, state governments that are really looking for the opportunity to to use a cloud that follows the follows the same type of policies that Rumble does. Excellent and last question from me and thanks again for taking out my questions and congrats on Dspacking! So I I've been getting this question a lot and I think it's an interesting one. So what are the implications for Rumble of Elon Musk acquiring Twitter Okay, I think it's great. Um, it's great for a couple reasons. The the first reason is that you know Elon is pushing the same message that that Rumble is pushing. We're we're all trying to. we're all trying to get take the internet to a more free and open area. and anybody that does that in this ecosystem in ways that Banner is a great thing. for Rumble, we're not all alone on an island anymore. We have someone like Elon Musk doing a very similar thing where he is advocating for free speech. and that is a great thing. for Rumble, it takes Rumble kind of being in an isolated position to a very, uh, open position with you know, another large company in the ecosystem pushing the same thing. And more importantly, why this is great is that our creators now can actually benefit from sharing their content on a platform like Twitter without being censored. Uh, if that, if that does happen and he pulls those restrictions that that's only that that that should benefit Rumble in a major way by sharing their content there, getting more people to find their channels, having having more, having more access to to another audience on a different platform to, uh, advertise and not and promote the the content that they have. So I'm really excited about it I think it's helped a tremendous amount. Excellent thank you Chris thank you Tom thank you. Our next question comes from the line of Jason Helshstein from Oppenheimer Please go ahead. Uh hey guys, how are you I Wanted to expand a bit Um, appreciate the the breakdown of revenue between Um advertising and sponsorship I I Know you're not giving forward-looking guidance, but uh, as we look forward, do we think kind of like that ratio? Um, you know, kind of thinking about the seven point. you know? Um, you know the the um of the seven point the 7.6 million versus the 1.3 million. That's kind of like the ratio you would expect as this kind of scales. And then when do you think we can start to begin to see? kind of almost like an Advertiser testimonial on rack where you can kind of understand the ROI that you're delivering um for advertising that's the first question then I'd follow up thanks uh hey Jason it's Brandon I'll handle your first part of that and pass it off to Chris Um, you know I I Think it's a little early for us to give uh, any guidance on that. You know we want to try and build some credibility here. Uh, so we can you know, confidently speak more to that? Uh, so when we have a higher degree of confidence, um, on how we're going to perform I think we'll be able to get a better idea of the split. but clearly we had a very successful quarter from an ad Revenue perspective and we look forward to continuing to focus on that as well as on some of the other items that are in the licensing and other section. Okay, sure, oh it's it's Chris speaking uh I'll answer the second question uh with respect response to the uh, the advertisers. So one of the unique things about Rack and I think at this point you know you probably people don't really realize it yet. but uh the entire Advertiser base on Rack for the most part is direct response. So all the advertisers that are that are going in there they're looking to do an Roi and our growth is is based on Direct response, uh type of advertisements and we believe that that you know this this is a there's a lot of room to grow when it comes to direct response because all the advertisers putting in their putting in ads are getting a return on investment pretty immediately. and uh, this is what you know is extremely exciting to me and also validating on the fact the audience that is on Rumble has tremendous potential and tremendous value. So I just wanted to highlight the fact that the advertisers are for the most part uh, direct response. and now that you guys have you know a a very healthy balance sheet, um can you help us think about kind of where the spending goes I mean we've obviously seen the um the content Investments and we can kind of, you know try to figure out breaking down the cost of Revenue But as you just think about kind of scaling up particularly around R D sales and marketing just broadly, how do we think about kind of? you know the in some of the Investments you're going to make over the next you know 12 to 18 months. Thank you All right this is Chris again thanks Jason Uh so when it comes to the investment for for 2023, because we you know originally thought that we would have to put a lot of uh, a lot of the Uh Capital to work in terms of growing the company and we achieved such tremendous growth in in Q3 we have we. We're now kind of a little more geared towards monetization for 2023 um and products. So on the product side I want to get the product to be really really good and uh We've we've heard our community very loud and clear on that. So product has become like an enormous uh part of uh what we'll be focusing on here and here this quarter in the next um and then obviously the the other component is going. We believe the product will will drive a lot of growth as we improve on the product and then two. We really want to get our advertising and monetization at a point where we exceed the competition. We feel like that will give us a real Competitive Edge on the Creator on the Creator world if we can pay them more than the competition does and I think that we have a real path to do that based on what we're seeing Um in 2023. So we're really going to put the gas pedal on rack and really try to deliver to the creators a better monetization package than anything else out there. Thanks Appreciate the color, Thank you Jason Ladies and gentlemen, We have reached the end of the question and answer session and I would now like to turn the content silver to Chris Polowski CEO for closing comments. Thank you to everyone that has joined us today! Uh, I Look forward to updating everyone in our fourth quarter full year earnings call next year. Thank you everyone thank you! The conference of Rumble has now concluded. Thank you for your participation. You may now disconnect your lines. There you go, There, you go, There you go. That is the first earnings call and report for Rumble That was the CEO Chris Pavlovski. ever since the specs deal went through with uh Kenner Fitzhale uh the ticker Cfei A couple things I want to talk about just so you know in terms of like key numbers the ones that really jumped out at to me uh, were over the past 24 months over the past two years. 70 x growth in their monthly active users. That's the main thing right now. this is an early company. I'm not just as basic as you would do a fundamental breakdown of a large company of Revenue earnings per share. Is it important? Yes. I'm not saying that it isn't important, but understand the life cycle of this particular business. The main thing is user growth. The more people you get on there, the better your monetization is going to be. Speaking of money, 356.7 million in cash. That gives them a lot of dough to pull off the things that I kind of want to make my own little prediction about for 2023.. So I think this is how things are going to play out. 2023 in my opinion, is going to be a foundational year for Rumble. Yes, they're still going to have impressive growth I'm not saying that at all, but I think we're going to see three distinct things that make them blow up in a positive way. Rock it to the moon in 2024.. let me run through the notes that I took. So first of all, we heard a lot about Rack, which is their advertising system. Well, over 2023, you get more advertisers on, you get more content creators reading them. You just lay out that Foundation you work out the king, so that's going to be number one. I Think they're going to dramatically improve their advertising and like they alluded to it, sounds like these are going to be a little bit more host read but in my own. I guess Content creation on Rumble I Noticed at some point in October November from one week to the next week, my CPM your cost per Milli that's how that's really in the world of content creation, you get paid per thousand views, it doubled. It's not quite at the level of YouTube but if it keeps going up like that and then they also add on this rack system. and as Chris was alluding to the CEO their whole goal is to make it more and more and more to just entice people from I would assume YouTube twitch and Facebook. So I like that 2023 rack, it looks like they want to make their advertising and their payments even better. Number two: I'm looking at the fact that they have that 356 million dollars. It sounds like if I had to guess and kind of like some of the commentary there was, it looks like it's going to go into engineering on a two-fold kind of metric one for the actual product. So what we're looking at now: I Admit it does Rumble look as Sleek as you do? No, not right now. But think about where YouTube started. you have to start somewhere and with that much money on hand, obviously they're going to be able to hire the top tier Talent a thing that was alluded to multiple times to bring in the people to make it look better, have a little bit better Ux, just more functionality. So I'm really, really excited about that. So that's another foundational thing. and I think that's where quite a bit of the money is going to go. Speaking of creators, one of the biggest hits publicly against Rumble is like oh, it's a conservative platform. Well, inherently that's how it started because those were the people getting their platform taken away from them elsewhere. So they migrated to Rumble, but with that kind of money and just run humble, growing in popularity. Even here we're talking about: Finance Not really political. If you go to Rumble, they have viral videos, they have news, podcast gaming I Think we're going to be seeing an expansion there and all of a sudden when it no longer has this moniker of a platform for right-leaning people. like. Sure, as long as they're within the TOs they're allowed to be there. But as we see that expansion I think it'll get more and more popular because some people just don't care about politics at all. But if they enjoy their favorite gamer being on Rumble opposed to elsewhere I think that's going to be a big big thing that we see. so you're going to see more Creator growth. but I think we're going to see more diverse Creator growth and then kind of coming back to the platform itself and also just the money pile that I'm looking at. It might seem small because it was just kind of like generically stated, but the fact that they think they're going to be publicly offering a cloud service by the end of 2023 to me, that's big. My backgrounds in software engineering we were working with. uh, like really cloud computation? That type of stuff you have Microsoft has one Google has one. Um, there's so many there. there's so so many massively popular. a multi-multi-billion dollar industry. So this is how I see things playing out in 2023 I see a massive Foundation being built. Their advertising is going to get better, the site itself will look better, function better, and then also they're going to be able to have this product, the cloud that they're going to be able to start offering to people. So I see a bunch of their main pillars working out kind of The Kinks and really heading in the direction of where they want to in 2023. And then comes 2024.. So from the terms of products, I should say they're going to be ready to go. and then in 2024 because there is still probably a little bit of that political flavor. 2024 is a presidential election cycle, so there's going to be more eyeballs on this website, and those eyeballs are going to be seeing much better products. whether it's their creators, their ads, the overall just video viewing system I Think that's a recipe for a rocket launch directly to the moon Now obviously I'm saying all of this and I want to just be completely transparent I'm personally invested in Rum I made it very, very apparent I think my average right now is around 9.50 But what I want to make clear and really double triple, quadruple down on with you is the fact that this is not a short-term trade. I'm not holding this for a day a week a month a year. I will be in this for decades, so whether it goes up or down in the short or medium term, it's fun to excite, like get excited about the pops, and maybe be a little bit angry about the drops. But if it drops enough, I'll just probably end up buying more. So all that like I Guess that's an emotional thing, but for me, it doesn't matter because I'm in this for decades. So that's the wrap up. That's my main takeaway of what's going on on right now. And I think through 2023, those four earning calls are just going to be like our foundation is built out all right. It's a little bigger, a little bigger, a little bigger, and then I think it just goes like absolutely stratospheric in 2024 with the Presidential election cycle where they can offer better products, more eyeballs. That is just the recipe for massive, massive growth, which is kind of crazy me even saying that because in two years they already have 70 x growth. So I think the numbers are just going to get dynamic or like gigantic. Excuse me exciting times. Absolutely exciting times Now before I Let you guys all go Uh I guess I Kind of want to turn it over a little bit of what are you guys seeing like what are your thoughts and opinions I'm in no way saying I'm some like warm Buffett level investor of the market Uh, but any like main takeaway commentary that you guys had from that what's the ratio of pay to creators in reference to YouTube and Rumble for me I could say that uh so my cost per Milli right now on YouTube is in the range of like 11 or 12 and then runs around. Uh, eight was the recent one, but before that it was four so they doubled from four to eight. and then based on that commentary rack and just the other things that they're pulling off, it sounds like two different ad things. You have the host red ones and also just their programmatic ones are gonna get more. Uh so uh, it's not there quite yet. but I'm the trend of it YouTube is not trending up. it's flat while I see rumbles trending up Is this CPM yet? Cost per Milli Uh Twitter is on AWS imagine Elon takes it on Rumble well we know. Uh, recently we had the privilege of speaking with Chris the CEO of Rumble of how Starlink is now going to be in ISP with uh, their Rumble Cloud So there is a little bit of a business connection there and I'm curious myself if in the future that's going to be built out a little bit more. Uh, what else do we have? What else do we? Yeah, True social is a big part of the traffic on RAC Uh, post a video Arizona elections All right, What else any other hot takes from that I Think to me the best summary is this seems to be a very good additional step in an exciting Direction forward. So that was the first Rumble earnings call an announcement. ever since the SPAC Um, really the D's back, the SPAC successfully went through and man oh man, it's going to be a journey I Don't think this by any means is a a get rich quick type of an investment. I Don't think if you have that mindset I don't think you're going to be successful I'm looking at where things are going and I think people. uh, particularly in the US and Canada but honestly, probably on a global scale. Would love to be on a social media platform that actually abides by their TOs and that is equally applied to everyone on the platform. To me, that is a winning concoction. And then when you add in these other types of things such as their cloud and just like the popularity, I mean Steve will do it. Blew it up. Andrew Tate blew it up? Who knows I mean when in these days there's going to be some big big creator that signs an additional big Creator there's already massive ones Russell Brand Steve will do huge huge huge ones. but I think they're going to be able to get especially maybe in this gen Z sector. Maybe someone like I show speed or someone like that and I think the day that that's announced and hopefully comes sooner rather than later I think the internet might be breaking Anyway, that's what I have for you and this one. Hey, on your way out, don't forget to check out public pinned to the top of chat. Uh, no payment for water flow. No market makers. You get a free stock when you sign up. It's a brokerage I Personally trust in just because I don't want to deal with some of these other ones that do super super Shady things with market makers pinned to the top of chat in the description of the video on your way out. If you want to help me out, don't forget to hit the like button. We can battle it out on the leaderboard and of course do not forget to subscribe I Hope you have a B E a beautiful evening and I'll catch you in the next video. foreign.

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