Rumble Inc (NASDAQ:RUM) stock fell 5.21% (As on May 16, 11:23:16 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the first quarter of FY 23. The first quarter of 2023 concluded with a major milestone of agreements for the rights to three sports leagues, SLS and NRX, in addition to the previously announced Power Slap, and subsequent to quarter end the addition of top streamers Kai Cenat and IShowSpeed. As of March 31, 2023, Rumble had cash, cash equivalents and marketable securities of $326.3 million.

RUM in the first quarter of FY 23 has reported the adjusted earnings per share of -14 cents, missing the analysts’ estimates for the adjusted earnings per share of -3 cents. The company had reported the adjusted revenue growth of 336 percent to $17.6 million in the first quarter of FY 23, missing the analysts’ estimates for revenue of $15.9 million.  The increase is due to an $11.8 million increase in advertising revenue and a $1.8 million increase in licensing and other revenue. The increase in advertising revenue was driven by an increase in consumption as well as the introduction of new advertising solutions for creators, publishers and advertisers, including host read advertising and the online advertising management exchange (RAC), both of which we started to implement in the second half of 2022. The increase in licensing and other revenue was driven by tipping features within the platform as well as certain cloud, subscription, platform hosting fees, and provision of one-time content.

Moreover, Cost of services was $26.0 million for the quarter, compared to $3.7 million in the first quarter of 2022. The increase is due to an increase in programming and content costs of $21.1 million, hosting expenses of $0.5 million, and other service costs of $0.7 million. Research and development expense was $2.6 million for the quarter, compared to $0.8 million in the first quarter of 2022. Sales and marketing expense was $3.3 million for the quarter, compared to $0.8 million in the first quarter of 2022.

Meanwhile, the company announced today that it has acquired CallIn, the San Francisco-based podcasting and live streaming platform founded by technology entrepreneur and investor David Sacks. Pursuant to the terms of the definitive acquisition agreement, Sacks is slated to join Rumble’s board of directors in the second half of June 2023.