Rumble Inc. Misses Q1 2024 Earnings Estimates Despite Revenue Growth

Rumble Inc., a technology and media company, has released its Q1 2024 financial results, missing analyst expectations with a GAAP EPS of -$0.21 and revenue of $17.73 million, despite announcing a strategic partnership with Barstool Sports and reiterating its expected sequential revenue increase in Q2 2024. The company's performance has significant implications for its investors, partners, and the technology and media industries, as it adapts to changing market conditions and consumer behavior. This description focuses on the primary topic of Rumble Inc.'s Q1 2024 financial results, the main entity being the company itself, and the context of the technology and media industries. It highlights the significant actions of missing analyst expectations and announcing a strategic partnership, as well as the implications for investors, partners, and the industry. The description also provides objective and relevant details that will help an AI generate an accurate visual representation of the article's content.

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Aqsa Younas Rana
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Rumble Inc. Misses Q1 2024 Earnings Estimates Despite Revenue Growth

Rumble Inc. Misses Q1 2024 Earnings Estimates Despite Revenue Growth

Rumble Inc. (NASDAQ: RUM) has released its financial Results for the first quarter of 2024, falling short of analyst expectations. The company reported a GAAP EPS of -$0.21, missing earnings by $0.02. Revenue came in at $17.73 million, representing a 0.6% year-over-year increase but missing expectations by $0.54 million.

Why this matters: The earnings report of Rumble Inc. has significant implications for the technology and media industries, as it reflects the company's ability to adapt to changing market conditions and consumer behavior. The company's performance also has a ripple effect on its investors and partners, influencing their investment decisions and strategies.

Despite the revenue miss, Rumble reiterated its expected sequential increase in topline revenue for the second quarter. The company also announced a key strategic partnership with Barstool Sports during the quarter.

Rumble's Q1 2024 revenue of $17.73 million was up 1% compared to Q1 2023. The increase was driven by a $3.2 million rise in other services and cloud revenue, partially offset by a $3.1 million decrease in advertising revenue. Cost of services increased to $31.8 million from $26.0 million in the prior year quarter. General and administrative expense rose to $9.3 million from $8.6 million, while research and development expense climbed to $4.5 million from $2.6 million. Sales and marketing expense remained mostly steady at $3.3 million.

In the earnings release, Rumble Chairman and CEO Chris Pavlovski commented, "Most impressive during this first quarter was our team's diligent focus on the execution to continue building our foundation... We now capture an addressable market that includes the Rumble content video platform, the Rumble Advertising Center, our unique Rumble Studio platform, and our infrastructure as a service product, the Rumble Cloud." Pavlovski also mentioned plans to shift focus to average revenue per user (ARPU) as a key metric and phase out reporting of estimated monetizable weekly paying members and hours of uploaded videos per day.

As of March 31, 2024, Rumble had a cash, cash equivalents, and marketable securities balance of $183.8 million. The company expects revenue to increase sequentially starting in Q2 2024 and continues to move towards breakeven in 2025. Rumble will host a conference call at 5:00 p.m. Eastern Time on May 14, 2024, to discuss the quarterly results.

While Rumble's Q1 2024 results missed analyst estimates, the company remains optimistic about its future growth prospects. With a focus on expanding its addressable market and key partnerships, Rumble aims to drive revenue growth in the coming quarters as it works towards profitability in 2025.

Key Takeaways

  • Rumble Inc. misses Q1 2024 earnings expectations with GAAP EPS of -$0.21.
  • Revenue increases 0.6% YoY to $17.73 million, but misses estimates by $0.54 million.
  • Rumble announces strategic partnership with Barstool Sports and expects sequential revenue growth in Q2 2024.
  • Company shifts focus to average revenue per user (ARPU) as a key metric.
  • Rumble aims to reach breakeven in 2025 with a current cash balance of $183.8 million.