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Rumble (RUM)
NASDAQ:RUM
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Rumble
(NASDAQ:RUM)
Rating:43Neutral
Price Target:
$9.00
▼( -1.75% Downside)
Positive Factors
Financial Strength
The company has no debt and a cash position of $301.3 million, up significantly from the previous quarter, indicating sufficient capital to fund future initiatives.
Partnerships and Monetization
Numerous impressive client wins as monetization efforts accelerate, with partnerships announced with Netflix, Crypto.com, and Chevron, highlighting ongoing traction in its cloud business.
Negative Factors
Earnings Guidance
The company introduced 1Q25 revenue guidance of at least 25% year-over-year, below consensus of 41% growth.
Operational Costs
Adjusted EBITDA was a loss greater than expected, due to one-off items including payroll expenses and charges related to executive departures.
Rumble (RUM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.01B
Dividend YieldN/A
Average Volume (3M)2.18M
Price to Earnings (P/E)―
Beta (1Y)1.71
Revenue Growth25.14%
EPS Growth-123.03%
CountryUS
Employees135
SectorTechnology
Sector Strength77
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.01
Shares Outstanding214,941,930
10 Day Avg. Volume3,475,058
30 Day Avg. Volume2,178,996
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)-23.01
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.00Price Target Upside52.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Rumble Business Overview & Revenue Model
Company DescriptionRumble Inc. operates video sharing platforms. The company operates rumble.com, a platform that enables video creators to host, livestream, manage, distribute, and create OTT feeds, as well as monetize their content. It also operates locals.com, a subscription-based video sharing platform. The company was founded in 2013 and is based in Longboat Key, Florida.
How the Company Makes MoneyRumble makes money primarily through advertising revenue, taking a share of the ad revenue generated from videos on its platform. The company operates an ad-supported model where advertisers can place ads on videos, and revenues are shared with content creators based on views and engagement metrics. Additionally, Rumble offers subscription services for viewers who prefer an ad-free experience, providing another revenue stream. Rumble also engages in partnerships with content creators and media organizations to expand its content offerings, which can enhance user engagement and attract more advertisers. The company's focus on supporting creators with favorable revenue-sharing terms is a significant factor in its earnings strategy.
Rumble Financial Statement Overview
Summary
Rumble faces significant financial challenges with negative profitability and cash flow metrics, alongside a weak balance sheet. While revenue is growing, the company struggles with substantial losses and liquidity issues, posing high financial risk.Income Statement
Rumble showed significant revenue growth from 2020 to 2024, but profitability metrics such as gross profit margin and net profit margin are deeply negative, indicating substantial operational challenges. EBIT and EBITDA margins are also negative, reflecting high operating losses.15
Very Negative
Balance Sheet
The balance sheet reveals a troubling scenario with a negative equity position in 2020, improving slightly but still weak in subsequent years. The debt-to-equity ratio is undefined due to zero equity in the latest year, highlighting potential financial instability.5
Very Negative
Cash Flow
Rumble's cash flow performance is poor, with negative free cash flow and operating cash flow in several years. Despite some improvement in operating cash flow over time, the free cash flow remains negative, indicating ongoing liquidity challenges.20
Very Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 95.49T | 80.96M | 39.38M | 9.47M | 4.56M | Gross Profit |
| -24.58T | -65.19M | -4.36M | 2.27M | 1.84M | EBIT |
| -10.00T> | -135.55M | -35.65M | -7.58M | -1.20M | EBITDA |
| -115.88M | -131.47M | -32.93M | -10.37M | -1.16M | Net Income Common Stockholders |
| -338.36M | -116.42M | -11.40M | -13.41M | -1.26M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 114.02M | 219.47M | 338.27M | 46.85M | 1.45M | Total Assets |
| 195.31M | 295.71M | 366.98M | 55.80M | 2.68M | Total Debt |
| 1.80M | 2.61M | 1.42M | 1.51M | 424.99K | Net Debt |
| -112.22M | -215.73M | -335.75M | -45.34M | -1.02M | Total Liabilities |
| 258.43M | 44.09M | 27.35M | 25.43M | 3.02M | Stockholders Equity |
| -63.12M | 251.62M | 339.63M | 30.37M | -340.94K |
| Cash Flow | Free Cash Flow | |||
| -94.18M | -110.40M | -41.37M | -7.03M | -17.61K | Operating Cash Flow |
| -87.01M | -92.91M | -32.33M | -5.19M | 51.19K | Investing Cash Flow |
| -15.64T | -23.77M | -10.14M | 1.58M | -68.81K | Financing Cash Flow |
| -1.67M | -2.15M | 332.79M | 49.01M | -423.52K |
Rumble Technical Analysis
Positive
9.16
Price Trends
8.16
Positive
9.68
Negative
8.06
Positive
Market Momentum
0.43
Positive
53.25
Neutral
21.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RUM, the sentiment is Positive. The current price of 9.16 is above the 20-day moving average (MA) of 8.92, above the 50-day MA of 8.16, and above the 200-day MA of 8.06, indicating a bullish trend. The MACD of 0.43 indicates Positive momentum. The RSI at 53.25 is Neutral, neither overbought nor oversold. The STOCH value of 21.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RUM.
Rumble Risk Analysis
Rumble disclosed 52 risk factors in its most recent earnings report. Rumble reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rumble Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.70B | ― | -63.52% | ― | 30.08% | -196.62% | |
72 Outperform | $733.11M | 45.64 | 4.29% | ― | -0.05% | 23.22% | |
70 Outperform | $554.74M | 134.79 | 1.94% | ― | 3.62% | -53.21% | |
69 Neutral | $867.17M | 460.47 | 4.15% | ― | 30.64% | ― | |
61 Neutral | $11.29B | 10.07 | -7.05% | 2.96% | 7.47% | -10.75% | |
54 Neutral | $603.22M | ― | -46.57% | ― | -2.39% | -2961.26% | |
43 Neutral | $4.01B | ― | -108.20% | ― | 25.14% | -123.03% |
* Technology Sector Average
Performance Comparison
RUM
Rumble
9.16
2.12
30.11%
PUBM
PubMatic
11.29
-12.46
-52.46%
GRND
Grindr
24.00
14.63
156.14%
DSP
Viant Technology
13.48
3.86
40.12%
BMBL
Bumble
5.72
-5.75
-50.13%
VMEO
Vimeo
4.36
0.56
14.74%
Rumble Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 17.74%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call for Rumble Incorporated presented an optimistic outlook with strong user growth, increased revenue, and notable brand partnerships, despite challenges such as decreased ARPU and ongoing adjusted EBITDA losses. The significant increase in cash reserves and strategic plans for international expansion highlight a positive trajectory.Q1-2025 Updates
Positive Updates
Record User Retention and Growth
Rumble achieved an 87% user retention rate in Q1 2025, significantly improving from the 60% retention rate in Q1 2023, amidst a continuous streak of over 40 million MAUs for 13 consecutive quarters and over 50 million MAUs for 7 consecutive quarters.
Revenue and Monetization Increase
Reported revenues of $23.7 million for Q1 2025, marking a 34% increase compared to the same quarter last year, driven by higher audience monetization and other initiatives.
Brand Partnerships and Advertising Growth
Secured new brand partnerships with Netflix, Crypto.com, and Chevron, marking a significant step forward in the advertising business.
Cloud and International Expansion
Announced a cloud partnership with the Government of El Salvador and plans for the Rumble Wallet to position the company for international market expansion.
Improved Financial Flexibility
Ended Q1 2025 with $301.3 million in cash and cash equivalents, a substantial increase due to the Tether investment.
Negative Updates
Decreased ARPU
ARPU decreased to $0.34 for Q1 2025 compared to $0.39 in Q4 2024, attributed to lower advertising revenue despite higher subscription revenue.
Adjusted EBITDA Loss
Adjusted EBITDA loss for Q1 2025 was $22.7 million, though it represents a 14% improvement compared to Q1 2024.
One-Time High G&A Expenses
General and administrative expenses increased by $7.3 million compared to Q1 2024 due to one-time payroll and related events, including the amicable departure of an executive and a director.
Company Guidance
During Rumble Incorporated's First Quarter 2025 earnings call, the company provided an optimistic outlook, highlighting multiple key metrics. Rumble achieved 59 million Monthly Active Users (MAUs), marking a significant 87% retention rate from the previous quarter, and a notable improvement from the 60% retention post-midterm elections in 2023. Rumble reported a 34% year-over-year revenue growth, amounting to $23.7 million, driven largely by audience monetization and advertising initiatives. The company also announced brand partnerships with Netflix, Crypto.com, and Chevron, emphasizing the start of positive traction in their advertising business. Furthermore, Rumble is set to launch the Rumble Wallet in Q3 2025, aiming to enhance international market monetization and provide unique offerings in the creator economy. Additionally, Rumble Cloud has expanded with a new partnership with the Government of El Salvador, reflecting growing interest in their cloud solutions. CEO Chris Pavlovski emphasized the company's continued focus on M&A strategies to further strengthen its market position.Rumble Corporate Events
Legal ProceedingsBusiness Operations and StrategyFinancial Disclosures
Rumble Reports 34% Revenue Increase in Q1 2025
Positive
May 8, 2025
Rumble Inc. reported a 34% increase in revenue to $23.7 million for the first quarter of 2025, with improved user retention and a significant reduction in net loss compared to the previous year. The company secured a cloud services contract with El Salvador and announced partnerships with notable entities such as the Tampa Bay Buccaneers and the White House. Additionally, Rumble has been involved in legal actions advocating for free speech and is preparing for international expansion with the upcoming release of Rumble Wallet.
Executive/Board Changes
Robert Arsov Resigns from Rumble’s Board of Directors
Neutral
Apr 9, 2025
On April 3, 2025, Robert Arsov resigned from the Board of Directors of Rumble Inc., reducing the board size to seven directors. His departure was amicable, and he was granted an extension on his stock options exercise period, reflecting his significant contributions to the company.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.