Rumble Inc (NASDAQ:RUM), the video-sharing platform and cloud services provider, stock rose 4% (As on March 25, 11:37:00 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY24. Average global Monthly Active Users (“MAUs”) of 68 million in the fourth quarter of 2024, compared to 67 million in the third quarter of 2024. MAUs increased during the United States presidential election season. Of the 68 million MAUs, 52 million were based in the U.S. and Canada representing 21% growth compared to 43 million in the third quarter of 2024. Average Revenue Per User (“ARPU”) for the fourth quarter of 2024 was $0.39, compared to $0.33 in the third quarter, an increase of 18%. The increase from the third quarter is attributable to higher advertising and subscription revenue. Net loss for the fourth quarter was $236.8 million compared to a loss of $29.3 million in the fourth quarter of 2023, principally attributable to a $184.7 million loss in the change in fair value of derivative expense related to Tether’s strategic investment in Rumble. Adjusted EBITDA, a non-GAAP financial measure, was a loss of $13.4 million in the fourth quarter of 2024, representing an improvement of $16.6 million compared to the fourth quarter of 2023. As of December 31, 2024, Rumble’s balance of cash, cash equivalents and marketable securities was approximately $114.0 million. Subsequent to year-end, the Company gained $250 million in gross proceeds related to Tether’s strategic investment in Rumble (after giving effect to the concurrent $525 million self tender offer).
RUM in the fourth quarter of FY24 has reported the adjusted earnings per share of -$1.15, missing the analysts’ estimates for the adjusted earnings per share of -$1.12. The company had reported the adjusted revenue growth of 48 percent to $30.23 billion in the fourth quarter of FY24, beating the analysts’ estimates for revenue of $29.74 billion.
Meanwhile, the company has entered into a cloud services agreement with the Government of El Salvador. The deal is emblematic of the increasing migration of the world toward companies that better align with the values of freedom.
Additionally, the company has filed a lawsuit along with the Trump Media & Technology Group (TMTG-owners of TRUTH Social) against Brazilian Supreme Court Justice Alexandre de Moraes, alleging that Justice Moraes violated the free speech protections of the First Amendment when he ordered the suspension of the U.S.-based accounts of a specific well-known, politically outspoken user.
The revenue guidance for the first quarter of FY 25 is $22.17 million at the midpoint, below analyst estimates of $25.08 million