Rumble Inc. (RUM.O) Faces Mixed Q4 Outcomes with Earnings Beat but Revenue Shortfall

Key Points

• Rumble Inc. (RUM) reported Q4 earnings per share of -14 cents, beating analyst estimates, but missed revenue targets with $20.39 million against an expected $28.13 million.
• Analyst Jason Helfstein noted strong user growth but weaker than expected engagement and monetization, with cautious optimism for revenue acceleration in future quarters.
• Rumble's share price dropped by 4% following the report, yet the stock has experienced significant growth, up over 80% year-to-date in 2024.

In this news

Rumble Inc. Class A Common Stock has released its financial results for the fourth quarter of 2023, revealing a mixed performance that surpassed earnings expectations but fell short on revenue targets. The company reported an earnings per share (EPS) of -14 cents, which was notably better than the analyst estimate of -22 cents. However, Rumble's revenue for the quarter stood at $20.39 million, which did not meet the analyst projection of $28.13 million, marking a 27.51% deviation from expected figures.

Despite the revenue miss, Rumble demonstrated strong user growth during the quarter, as highlighted by Oppenheimer analyst Jason Helfstein. However, Helfstein also pointed out that engagement and monetization levels were weaker than anticipated, which could be a concern for future revenue growth. On a positive note, the company is optimistic about its revenue acceleration starting from the second quarter, with additional support expected from its new adtech platform, Rumble Ad Center, later in the year. The recent launch of Rumble Cloud in March was cited by Rumble CEO Chris Pavlovski as a significant milestone, though analysts remain skeptical about its immediate material impact.

The mixed financial results and the cautious analyst outlook have led to a decrease in Rumble's share price by 4% to $8.13. Despite this, Rumble shares have seen an overall increase of over 80% year-to-date in 2024. Investors and market watchers will be keeping a close eye on Rumble's performance in the upcoming quarters, especially with the anticipated political content engagement during the 2024 election cycle and the potential growth from the Rumble Ad Center.