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

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

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 Price Performance

Shares of RUM stock traded down $0.18 on Monday, hitting $6.21. The stock had a trading volume of 3,437,563 shares, compared to its average volume of 2,692,115. The business has a 50 day moving average of $6.64 and a 200 day moving average of $6.36. Rumble has a 12-month low of $4.62 and a 12-month high of $10.54. The stock has a market cap of $2.71 billion, a price-to-earnings ratio of -14.44 and a beta of 1.14.

Institutional Investors Weigh In On Rumble

A number of institutional investors have recently added to or reduced their stakes in the company. Cantor Fitzgerald L. P. raised its stake in shares of Rumble by 26.5% during the 4th quarter. Cantor Fitzgerald L. P. now owns 9,326,205 shares of the company’s stock worth $58,942,000 after purchasing an additional 1,951,768 shares during the period. Barclays PLC grew its position in Rumble by 177.8% during the fourth quarter. Barclays PLC now owns 417,454 shares of the company’s stock valued at $2,638,000 after buying an additional 267,177 shares during the period. Squarepoint Ops LLC bought a new position in Rumble during the third quarter valued at about $1,346,000. Janus Henderson Group PLC increased its holdings in Rumble by 413.8% during the fourth quarter. Janus Henderson Group PLC now owns 176,447 shares of the company’s stock worth $1,115,000 after buying an additional 142,107 shares during the last quarter. Finally, Marshall Wace LLP increased its holdings in Rumble by 383.7% during the fourth quarter. Marshall Wace LLP now owns 169,650 shares of the company’s stock worth $1,072,000 after buying an additional 134,575 shares during the last quarter. 26.15% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of analysts have commented on RUM shares. Wall Street Zen raised Rumble from a “strong sell” rating to a “hold” rating in a report on Saturday, May 16th. Weiss Ratings restated a “sell (d-)” rating on shares of Rumble in a report on Friday, July 24th. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the stock currently has an average rating of “Sell”.

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.