Growth and Optimism Despite Stock Dip
Rumble Inc. (RUM) shares experienced a decline in after-hours trading following the release of their third-quarter financial results. Despite the stock dip, the company reported significant growth and expressed optimism about its future prospects.
Earnings: Adjusted earnings per share (EPS) came in at a loss of 15 cents, exceeding analyst estimates of a 12-cent loss.
Revenue surged by 39% year-over-year, driven by a jump in average global monthly active users (MAU) from 53 million in Q2 to 67 million in Q3. This increase is attributed to heightened interest in political content.
ARPU decreased from 37 cents in Q2 to 33 cents in Q3.
Rumble ended the quarter with a robust cash position of $132 million.
The company anticipates continued revenue growth for the remainder of 2024 and expects to move closer to adjusted EBITDA breakeven in 2025.
Chris Pavlovski, Rumble's chairman and CEO, expressed strong optimism about the company's future. He highlighted the record-breaking engagement during the recent election and emphasized the growing importance of free speech and independent creators.
Despite the positive financial results and optimistic outlook, RUM shares declined by 12.88% in after-hours trading, reaching $5.95 at the time of publication.
Rumble's Q3 results demonstrate continued growth and a strong financial position. While the stock price experienced a decline, the company's management remains confident in its future prospects and its ability to capitalize on the increasing demand for free speech platforms.