Rumble Inc. (RUM) has recently released its financial results for the second quarter of 2024. Despite facing certain challenges, Rumble reported a significant sequential revenue growth of 27%, reaching $22.5 million. This performance is pivotal for stakeholders as the company continues to focus on monetization and expanding its user base.
Key Insights from Rumble Inc.’s Q2 Reports:
Below are the key findings from the Rumble’s Q2 earning report.
- Revenue Growth: Rumble Inc reported Q2 2024 revenue of $22.5 million, marking a 27% increase from $17.7 million in Q1 2024, but a 10% decrease compared to $25.0 million in Q2 2023.
- ARPU Increase: The company introduced a new KPI, Average Revenue Per User (ARPU), which grew by 19% from Q1 2024, reaching $0.37.
- User Growth: Rumble’s Monthly Active Users (MAUs) increased to 53 million in Q2 2024, up from 50 million in Q1 2024, driven by increased interest in political news.
- Record Live Stream Viewership: Rumble set a new record with 718,909 concurrent live stream viewers during a political debate.
- Content Expansion: Hours of uploaded video per day increased by 7% from Q1 2024, reflecting the platform’s expanding content offerings.
Management Discussion and Analysis:
Rumble’s Chairman and CEO, Chris Pavlovski, emphasized the company’s strategic shift towards monetization. The introduction of ARPU as a key metric signals a more focused approach to generating revenue from its vast user base. Pavlovski highlighted the positive early adoption of Rumble’s monetization strategies, particularly in cloud services, which have shown promising growth.
The company’s decision to discontinue reporting metrics like Minutes Watched Per Month (MWPM) and hours of uploaded video per day in favor of ARPU reflects this new direction. Rumble’s focus on ARPU is expected to provide a clearer picture of the company’s financial health and growth potential, especially as it moves towards its goal of achieving Adjusted EBITDA breakeven in 2025.
Stock Target Advisor’s Analysis on Rumble:
According to Stock Target Advisor, Rumble Inc.’s stock has a “Slightly Bearish” rating, based on one positive and two negative signals. The stock has shown low volatility compared to its sector peers, which is favorable for risk-averse investors. However, the company’s risk-adjusted returns are below the median, and its dividend returns are not competitive within the sector. Rumble’s stock price has experienced a decline of approximately 30.22% over the last year, reflecting investor caution amidst the company’s ongoing legal battles and shifting business strategies.
The average analyst target price for Rumble’s stock is $8.00, with a “Hold” rating from analysts. Despite the company’s efforts to monetize its platform and expand its user base, the stock’s performance has been inconsistent, suggesting a cautious approach for potential investors.
Conclusion:
Rumble Inc.’s Q2 2024 financial results showcase the company’s continued growth in revenue and user engagement, despite facing several challenges. The introduction of ARPU as a key metric marks a significant shift in Rumble’s monetization strategy, which could drive future growth.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
