Rumble Is 'Still Looking For Q2 Revenue Improvement,' Says Analyst

Rumble Inc RUM shares were down in trading on Wednesday after the company reported its first-quarter results.

The results came amid an exciting earnings season.

While monetization improved, engagement declined sequentially, as the previous quarter benefited from sports and political content, according to Oppenheimer.

The Rumble Analyst: Jason Helfstein reiterated a Perform rating on Rumble.

The Rumble Thesis: The company's U.S. monthly average users rose by 6% year-on-year to 35 million, versus a 26% decline in the previous quarter, while U.S. monthly ARPU (average revenue per user) grew by 23% quarter-on-quarter, Helfstein said in a note.

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While GAAP gross profit loss of $14 million, was $7 million better than Oppenheimer's estimate, EBITDA loss of $28 million was $5 million better, the analyst stated.

Rumble's revenue declined by 13% sequentially in the first quarter, but management reiterated their prior revenue guidance of sequential growth in the second quarter as well as their prior expectation "that minimum guarantees will moderate significantly through ’25, driving gross profit improvements," he added.

RUM Price Action: Shares of Rumble had declined by 2.24% to $6.99 at the time of publication on Wednesday.

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