Rumble (NASDAQ:RUM) Posts Earnings Results, Misses Estimates By $0.18 EPS

Rumble (NASDAQ:RUM) released its quarterly earnings results on Monday. The company reported ($0.28) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($0.18), FiscalAI reports. Rumble had a negative net margin of 106.91% and a negative return on equity of 42.47%. The firm had revenue of $40.37 million during the quarter, compared to the consensus estimate of $31.23 million. During the same quarter last year, the firm earned ($0.12) earnings per share. The business’s revenue for the quarter was up 61.0% compared to the same quarter last year.

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 Down 2.8%

Shares of RUM stock traded down $0.18 during trading hours on Monday, reaching $6.21. The company’s stock had a trading volume of 3,437,563 shares, compared to its average volume of 2,692,115. Rumble has a fifty-two week low of $4.62 and a fifty-two week high of $10.54. The firm’s 50 day simple moving average is $6.64 and its 200-day simple moving average is $6.36. The company has a market capitalization of $2.71 billion, a price-to-earnings ratio of -14.44 and a beta of 1.14.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports 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 restated a “sell (d-)” rating on shares of Rumble in a research report on Friday, July 24th. One analyst has rated the stock with a Sell rating, According to MarketBeat, the stock has an average rating of “Sell”.

Institutional Investors Weigh In On Rumble

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Virtu Financial LLC acquired a new position in shares of Rumble during the fourth quarter worth $146,000. NewEdge Advisors LLC grew its stake in Rumble by 2,905.9% during the fourth quarter. NewEdge Advisors LLC now owns 10,250 shares of the company’s stock worth $65,000 after purchasing an additional 9,909 shares during the period. XTX Topco Ltd bought a new stake in shares of Rumble in the 4th quarter valued at $313,000. VestGen Advisors LLC bought a new stake in Rumble in the fourth quarter valued at $64,000. Finally, Janus Henderson Group PLC increased its position in Rumble by 413.8% in the 4th quarter. Janus Henderson Group PLC now owns 176,447 shares of the company’s stock valued at $1,115,000 after buying an additional 142,107 shares in the last quarter. 26.15% of the stock is owned by institutional investors.

About Rumble

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.