Rumble Q4 Earnings Highlights: Revenue Miss, EPS Beat, Rumble Cloud 'Biggest Accomplishment To Date'

Video sharing platform Rumble Inc RUM reported fourth-quarter financial results after the market close Wednesday.

Here are the key highlights.

Rumble’s Q4 Report: Rumble reported fourth-quarter revenue of $20.39 million, up 2% year-over-year. The total missed a Street consensus estimate of $28.1 million, according to data from Benzinga Pro.

The company reported a loss of 14 cents per share in the fourth quarter, which beat a Street consensus estimate of a loss of 22 cents per share.

The company had 67 million average monthly active users in the fourth quarter, up 16% quarter-over-quarter. Of the 67 million total, 48 million are from the United States and Canada.

In the fourth quarter, the average minutes watched per month were 10.5 billion, down from 10.7 billion minutes in the third quarter.

The hours of uploaded video per day were up 21% year-over-year to 12,520 in the fourth quarter and down from 15,700 in the third quarter. The company said the figure was impacted by a decision by YouTube to disable tools that allowed automatic syncing of YouTube and Rumble channels.

The company said the fourth Republican presidential primary debate notched over 950,000 views with Rumble as the exclusive livestream partner.

For the full fiscal year, revenue was $81 million, up 106% year-over-year.

The company ended the fourth quarter with $219.5 million in cash and cash equivalents.

"As planned, 2023 was a year of product focus for Rumble as we concentrated on execution, prioritizing our infrastructure and product," Rumble CEO Chris Pavlovski said.

"Today, Rumble has four top-of-the-line products: our video platform, the Rumble Advertising Center, our unique Rumble Studio, and our biggest accomplishment to date, the Rumble Cloud."

Related Link: Rumble Q4 Earnings Preview: Key Items To Watch Including 2024 Election, Barstool Sports, TikTok

What's Next For Rumble: The company highlighted several new monetization features, which include pre-roll video advertising and tipping functionalities. The company also said its channels affiliated with candidates running for office can receive tips as federal campaign contributions.

Rumble highlighted a partnership signed with Barstool Sports in January that includes cloud services and a mutual sales agreement.

Rumble Cloud launched in March as an infrastructure-as-a-service solution that will be a new revenue stream for the company. Rumble said it hopes to serve the growing number of businesses looking for alternates to Big Tech for cloud services.

The company said it expects revenue to increase sequentially beginning with the second quarter of 2024. With guaranteed creator commitments decreasing by the end of 2024, Rumble said it is moving toward breakeven in 2025.

"Looking ahead, with our functioning products now online, we expect clarity on the performance of our assets beginning in the second quarter, leading to a stronger topline in the second half of the year," Pavlovski said.

Pavlovski said monetization would be more evident in 2024 alongside its "commitment to deliver long-term value to all stakeholders and our path towards breakeven in 2025."

RUM Price Action: Rumble shares are down 2% to $8.33 in after-hours trading Wednesday versus a 52-week trading range of $3.33 to $11.25.

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