In a recent move by Rumble Inc. (NASDAQ:RUM), the company announced the appointment of Jerry Naumoff to its Board of Directors. The decision, effective as of Friday, was confirmed by Rumble's Board, which has recognized Naumoff as independent according to Nasdaq's listing rules and the regulations of the U.S. Securities Exchange Act.
Rumble, a company operating within the computer programming and data processing sector, has determined that there are no undisclosed arrangements or understandings behind Naumoff's selection. Furthermore, no financial transactions between Naumoff and the company require disclosure, with the exception that Naumoff's son is a non-executive, salaried employee of Rumble.
As part of the Board, Naumoff will serve on the Audit Committee, and he will be compensated in line with the company's standard program for non-employee directors, as detailed in the Proxy Statement filed earlier this year on April 24, 2024.
In other recent news, Rumble Inc. has announced a substantial growth in its Q3 2024 earnings. The independent creator platform reported a revenue increase to $25.1 million, up $7.1 million from the same quarter last year. Despite a slight decrease in average revenue per user, the company experienced a surge in monthly active users, reaching 67 million. Rumble Inc. also highlighted the success of its platform during the U.S. presidential election and the launch of Rumble Premium.
The company's adjusted EBITDA loss improved to $23.5 million, with a decrease in cash commitments for programming and content agreements. Rumble Inc. ended the quarter with $132 million in cash and marketable securities, with an aim to reach adjusted EBITDA breakeven by 2025.
In terms of future expectations, the company is focusing on monetization strategies for 2024, including brand partnerships and the ongoing development of Rumble Ad Center.
InvestingPro Insights
As Rumble Inc. (NASDAQ:RUM) welcomes Jerry Naumoff to its Board of Directors, investors may benefit from additional context provided by InvestingPro data and tips. The company's financial health presents a mixed picture, with some strengths and challenges that could influence its future trajectory.
InvestingPro data reveals that Rumble's market capitalization stands at $1.59 billion, reflecting its current position in the tech industry. The company's revenue for the last twelve months as of Q3 2023 was $85.65 million, with a notable quarterly revenue growth of 39.34% in Q3 2023. This growth indicates that Rumble is expanding its operations, which could be a positive sign for investors considering the company's potential.
However, InvestingPro Tips highlight some areas of concern. Rumble currently suffers from weak gross profit margins, and analysts do not anticipate the company will be profitable this year. This aligns with the reported gross profit margin of -67.53% and operating income margin of -166.61% for the last twelve months as of Q3 2023.
On a more positive note, an InvestingPro Tip indicates that Rumble holds more cash than debt on its balance sheet, suggesting a degree of financial stability. This could provide the company with flexibility as it navigates its growth strategy and incorporates new board expertise.
It's worth noting that Rumble's stock has taken a significant hit over the last week, with a 1-week price total return of -22.19%. This recent volatility may be a factor for investors to consider in light of the new board appointment and its potential impact on company direction.
For those seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide deeper insights into Rumble's financial position and market performance. There are 5 more InvestingPro Tips available for Rumble, which could be valuable for investors looking to make informed decisions about the company's stock.
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