Rumble Q1 Earnings Preview: Analyst Estimates, Cloud & Advertising Platform Monetization Efforts

Video-sharing platform Rumble Inc RUM reports first-quarter financial results after market close Tuesday May 14, 2024.

Here are the earnings estimate, what one analyst is saying and key items to watch.

Earnings Estimates: Analysts expect Rumble to report first-quarter revenue of $18.27 million, according to estimates from Benzinga Pro.

The Longboat Key, Florida-based company reported revenue of $17.62 million in last year's first quarter. Rumble has beaten revenue estimates from analysts in three of the last five quarters, but missed the estimate in the last two quarters.

Analysts estimate that Rumble will report a first-quarter loss of 19 cents per share compared to a loss of 14 cents per share in last year's first quarter. The company has beaten earnings per share estimates from analysts in three of the last five quarters.

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Analyst Comments: There is limited coverage by analysts on Rumble. Oppenheimer analyst Jason Helfstein has a Perform rating and no price target.

After fourth-quarter financial results, Helfstein praised the company's strong user growth, but cautioned that engagement and monetization were weaker than estimates.

"While MAUs growing, engagement and monetization were weaker than expected, offset by content/opex moderation," Helfstein said.

The company is guiding for revenue to accelerate beginning in the second quarter, and could also see momentum from its advertising efforts.

"Rumble Ad Center provides revenue tailwind political content drives engagement,” he added.

Key Items To Watch: The efforts of Rumble's advertising and monetization platforms will be a key topic eyed by analysts and investors Tuesday.

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.

"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," Rumble CEO Chris Pavlovski said after fourth-quarter results.

Pavlovski added that monetization would be more evident in 2024 with a "commitment to deliver long-term value to all stakeholders ad our path towards breakeven in 2025."

The 2024 election could also be a key topic Tuesday. Rumble now lets candidates running for office receive tips as federal campaign contributions earlier this year. Rumble is home to many political voices and could see a boost in engagement as the election nears.

Rumble has also expressed interest in being involved in a potential sale of TikTok. Commentary from the company could be shared during the conference call.

RUM Price Action: Rumble shares trade at $6.97 versus a 52-week trading range of $3.33 to $11.25. Rumble stock is down 27% over the last year, but shares have soared over 50% year-to-date in 2024.

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