Rumble (NASDAQ:RUM) Posts Quarterly Earnings Results

Rumble (NASDAQ:RUM) announced its quarterly earnings data on Monday. The company reported ($0.28) EPS for the quarter, missing analysts’ consensus estimates of ($0.10) by ($0.18), FiscalAI reports. The firm had revenue of $40.37 million for the quarter, compared to analysts’ expectations of $31.23 million. Rumble had a negative return on equity of 46.53% and a negative net margin of 134.60%.The firm’s quarterly revenue was up 61.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.12) EPS.

Here are the key takeaways from Rumble’s conference call:

• Northern Data acquisition completed, creating Quake AI as a cloud and AI infrastructure business alongside Rumble Video, with approximately 22,000 NVIDIA H100 and H200 GPUs and reported utilization above 85%.
• Second-quarter revenue rose 61% year over year to $40.4 million, while adjusted EBITDA loss improved to $16.6 million from $20.5 million; management issued third-quarter revenue guidance of $87 million to $93 million, reflecting the first full quarter with Quake AI.
• The company signed a multi-year agreement with Together AI for NVIDIA HGX B300 capacity and is targeting monetization of 250 megawatts of power in 2027, which management estimates could represent a $3 billion-plus annual revenue run rate.
• Rumble reported 57 million average monthly active users and $0.48 ARPU, up 20% sequentially, but will discontinue MAU and ARPU as headline metrics and begin reporting separate Rumble Video and Quake AI segments next quarter.
• Net loss widened to $80.3 million from $30.2 million a year earlier, primarily due to $28.3 million of Northern Data transaction costs and higher non-cash depreciation and amortization; the company also incurred nearly $47 million in investing activity during the quarter for AI infrastructure equipment.

Rumble Stock Performance

RUM traded up $0.25 during midday trading on Wednesday, hitting $7.17. The stock had a trading volume of 1,687,939 shares, compared to its average volume of 2,709,076. Rumble has a 1 year low of $4.62 and a 1 year high of $10.54. The business has a fifty day moving average of $6.53 and a 200 day moving average of $6.36. The company has a market cap of $3.13 billion, a P/E ratio of -12.27 and a beta of 1.14.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on RUM shares. Wall Street Zen raised shares of Rumble from a “strong sell” rating to a “hold” rating in a research report on Saturday, May 16th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Rumble in a research note on Friday, July 24th. One research analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, Rumble has an average rating of “Sell”.

Hedge Funds Weigh In On Rumble

Large investors have recently added to or reduced their stakes in the business. Cetera Investment Advisers raised its position in shares of Rumble by 9.5% in the 4th quarter. Cetera Investment Advisers now owns 23,396 shares of the company’s stock worth $148,000 after acquiring an additional 2,032 shares in the last quarter. Bank of America Corp DE boosted its position in shares of Rumble by 0.4% in the 2nd quarter. Bank of America Corp DE now owns 637,500 shares of the company’s stock worth $5,725,000 after purchasing an additional 2,678 shares in the last quarter. Daiwa Securities Group Inc. grew its stake in shares of Rumble by 47.8% in the 4th quarter. Daiwa Securities Group Inc. now owns 9,254 shares of the company’s stock worth $58,000 after buying an additional 2,993 shares during the last quarter. Alliancebernstein L.P. boosted its holdings in shares of Rumble by 3.3% during the 3rd quarter. Alliancebernstein L.P. now owns 94,058 shares of the company’s stock valued at $681,000 after acquiring an additional 3,008 shares during the last quarter. Finally, AQR Capital Management LLC grew its position in Rumble by 15.1% during the fourth quarter. AQR Capital Management LLC now owns 22,905 shares of the company’s stock valued at $145,000 after buying an additional 3,013 shares during the period. Hedge funds and other institutional investors own 26.15% of the company’s stock.

Rumble Company Profile

Rumble Inc operates a video-sharing platform designed to offer creators and audiences an alternative to traditional social media and streaming services. The company’s primary business activities include hosting, distributing and monetizing user–generated and professional video content. Through its platform, Rumble enables content creators to retain a higher share of advertising revenue and maintain greater control over their intellectual property, while offering viewers open access to a wide range of videos spanning news, sports, entertainment and educational programming.

In addition to its core video platform, Rumble provides cloud–based video hosting and delivery services via Rumble Cloud, a content–delivery network (CDN) designed to support high–volume streaming and storage.