Video-sharing platform Rumble Inc RUM reported second-quarter financial results after the market close Monday.
Here are the key highlights.
What Happened: Rumble reported second-quarter revenue of $22.5 million, up 27% sequentially. The revenue figure beat a Street consensus estimate of $19.69 million, according to data from Benzinga Pro.
The company reported a loss of 13 cents per share, which beat a Street consensus estimate of a loss of 15 cents per share.
Rumble reported 53 million average global monthly active users in the second quarter, up from 50 million in the first quarter. The company said this is the tenth consecutive quarter with over 40 million average global MAUs.
"We believe that the increase from the first quarter of 2024 is attributable to an increased interest in political news in the second quarter of 2024," according to the company.
Of the 53 million MAUs, 37 million were based in the U.S. and Canada.
Rumble set a new company record for concurrent livestream viewers during the first presidential debate between Joe Biden and Donald Trump on June 27. The company said third-party data shows a peak of 718,909 concurrent live viewers on the platform during the debate.
The company’s average revenue per user was 37 cents in the second quarter, up 19% from the first quarter. This is a new company metric the company said it believes will better reflect its management focus. The higher revenue per user was attributable to higher sponsorship revenue in the quarter, Rumble said.
Minutes watched per month totaled 8.5 billion in the second quarter, down from 8.6 million in the first quarter. Hours of uploaded video per day totaled 13,342 in the second quarter, up 1% year-over-year and 7% from the first quarter.
Rumble said it will stop reporting minutes watched per month and hours of uploaded video per day going forward.
The video-sharing company launched a second antitrust lawsuit against Alphabet Inc GOOG GOOGL unit Google in May alleging a monopolization of the online advertising market. Rumble is seeking damages of more than $1 billion.
Rumble also has a pending lawsuit against Google over self-preference that was filed in January 2021 and remains in discovery with a trial scheduled for May 2025.
The company ended the second quarter with $154.2 million in cash and cash equivalents.
"The second quarter evidenced proof and traction that our audience is ripe for monetization. With the appropriate user base for monetization, we moved forward and introduced a new key performance indicator in the second quarter – Average Revenue Per User," Rumble CEO Chris Pavlovski said.
What's Next: Rumble said it expects to move "materially towards" breakeven adjusted EBITDA in 2025.
"If our sponsorship agreements with advertisers continue to perform as expected and political advertising ramps up as the election cycle intensifies, we expect our revenues to continue to increase sequentially throughout 2024," according to Rumble.
Since the end of the second quarter, Rumble has announced a partnership with the NFL's Miami Dolphins and Hard Rock Stadium for the Rumble Cloud platform.
"With our focus on monetization and our product suite fully online, we are pleased with the early adoption that has taken hold, as is evident in both the progression of Cloud customers onboarded as well as the evolution of conversations to drive further partnerships expanding our total addressable market within the cloud space," Pavlovski said.
RUM Price Action: Rumble shares are up 6% to $6.08 in after-hours trading Monday versus a 52-week trading range of $3.33 to $9.20.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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