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Investing.com -- Shares of Rumble Inc. (NASDAQ:RUM) rose 24% following the release of the company’s first-quarter earnings, which surpassed analysts’ estimates. The video-sharing platform reported a narrower-than-expected loss per share and a significant year-over-year (YoY) increase in revenue.
Rumble reported a first-quarter loss per share of ($0.01), which was $0.08 better than the analyst estimate of ($0.09). Revenue for the quarter was $23.71 million, a substantial 34% increase from the $17.7 million recorded in the first quarter of the previous year. Despite falling short of the consensus estimate of $25.09 million, the company’s revenue growth and improved user retention rates post-U.S. election cycle appear to have resonated positively with investors.
The company highlighted several key achievements in its press release, including the retention of 87% of its Monthly Active Users (MAUs) following the 2024 U.S. general election, a marked improvement from the 60% retention rate post-2022 U.S. midterm election. The first quarter saw an average of 59 million MAUs, reflecting this enhanced user engagement.
Additionally, Rumble reported a net loss of $2.7 million for the quarter, a significant improvement from the $43.3 million loss in the same period last year. Adjusted EBITDA showed a loss of $22.7 million, which was $3.8 million better than the first quarter of 2024.
The company’s balance sheet was strengthened by the completion of an investment from Tether, with total liquidity reported at $318.7 million as of March 31, 2025. This includes $301.3 million in cash and cash equivalents, and 210.82 Bitcoin, valued at $17.4 million.
Rumble’s growth is also characterized by new partnerships and expansions, such as the cloud services agreement with the Government of El Salvador and the Tampa Bay Buccaneers. These developments, along with the White House establishing an official channel on the platform and content creator Tim Pool (NASDAQ:POOL) joining Rumble, signify the company’s expanding influence and potential for further growth.
Looking forward, Rumble’s management expressed confidence in achieving an Adjusted EBITDA breakeven in 2025, supported by the capital raised from Tether, which provides increased flexibility for further investment in growth initiatives.
The company’s focus on subscription revenue and monetization across its platforms, along with its strategic partnerships, seem to be key drivers in its positive outlook. However, the company did not provide a specific analyst quote in the press release.
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