Rumble Q4 Earnings Preview: Key Items To Watch Including 2024 Election, Barstool Sports, TikTok
Video-sharing platform Rumble Inc (NASDAQ:RUM) is set to report fourth-quarter (Q4) financial results after market close Wednesday.
Here are the key earnings estimates and items to watch.
Earnings Estimates: Analysts expect Rumble Q4 revenue to be $28.13 million, according to data from Benzinga Pro. That’s up from $19.96 million in last year's three-month timeframe.
If Rumble hits the revenue estimate, it would mark the highest revenue total in any quarter in the current fiscal year.
Analysts expect Rumble to report a loss of 22 cents per share in the fourth quarter, compared to net even earnings per share in last year's fourth quarter.
The 11-year-old company has beaten analysts' estimates for revenue in four of the last five quarters. It has also beaten earnings per share estimates from analysts in two of the last four quarters.
Related Link: Rumble Stock Slides On Mixed Q3 Earnings Report: Details
Barstool
Along with revenue and earnings per share, investors and analysts will be looking at key user metrics from Rumble.
The Longboat Key, Florida-based company reported a partnership with Barstool Sports in January and features the sports media company on its homepage.
Rumble and Barstool Sports reached an advertising agreement and Rumble will be the preferred video home for the sports media company.
"With the power of Barstool Sports, we are going to help Rumble be the top player in the video, cloud and live streaming space. The partnership with Barstool Sports is a major step in pursuit of our mission to continue building a portfolio of widely popular sports and entertainment content," Rumble CEO Chris Pavlovski said.
2024 Election
Rumble could also benefit from the current 2024 election cycle. The video platform has been the preferred home for former President Donald Trump ever since Trump Media & Technology Group (NASDAQ:DJT)migrated its website and mobile applications to Rumble’s cloud infrastructure in 2022.
Truth Social, the conservative-leaning social platform owned by Trump Media, is also expected to make a push into video, possibly siphoning far-right users away from Rumble.
"Rumble looks to have new competition from none other than $DWAC," Culper Research tweeted recently. "DWAC disclosed for the first time that it has begun testing a new video streaming service which would provide ‘a home for canceled creators.' Sounds familiar…"
Culper referenced the SPAC Digital World Acquisition Corporation in its post, which is the company that took Trump Media public.
Culper Research and several others have issued short reports on Rumble in the past.
Trump currently hosts videos for events such as campaign speeches on Rumble, where he has 2.17 million followers. Many of his speeches rack up hundreds of thousands of views each.
Trump was also unbanned on X, formerly known as Twitter, in 2022 but has only posted once since the un-ban. Other conservative voices were also banned on X and have been welcomed back.
As X pushes more into video, it could also disrupt Rumble’s user growth and potential video partners.
TikTok
Rumble could also use the Q4 report to highlight its interest in becoming the cloud technology partner of TikTok. Pavlovski shared an offer letter on X sharing his interest to work with whoever buys the U.S. arm of TikTok.
RUM Price Action: Rumble shares trade at $7.51 Tuesday versus a 52-week trading range of $3.33 to $11.25. Rumble shares are down 10% over the last year, but have surged over 60% year-to-date in 2024.
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