Social media company Rumble (RUM 2.74%) had a fine Tuesday as far as its stock was concerned. The share price zoomed more than 5% higher on the day, thanks to an earnings report that topped analyst expectations. That performance easily beat the frothy S&P 500, which closed Tuesday 1.7% higher.
Robust top-line growth in the second quarter
Rumble's second-quarter numbers were published after market hours Monday, and they reveal that the company earned $22.5 million in revenue. This was a robust 27% higher on a year-over-year basis, and comfortably topped the average analyst estimate of $19.7 million.
In terms of operational metrics, monthly average users (MAUs) -- considered to be a critical metric for social media companies -- also saw improvement. This tally was 53 million for the quarter, up from 50 million in the previous quarter. The company didn't hesitate to mention that this was the tenth consecutive quarter with a count above 40 million.
Rumble, which is popular with users who are right-leaning in their politics, also managed to narrow its net loss. This was $26.8 million, or $0.13 per share, against the year-ago deficit of $29.5 million. Again, this was good enough to top the consensus prognosticator estimate, which was for a $0.15 per share loss.
NASDAQ: RUM
Key Data Points
Vague but bullish guidance
In its earnings release, Rumble proffered full-year guidance, but it was rather vague. It wrote that "if our sponsorship agreements with advertisers continue to perform as expected and political advertising ramps up as the election cycle intensifies, we expect our revenues to continue to increase sequentially throughout 2024."
The only forecast it offered for profitability is that it aims to "move materially" toward breakeven for non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2025.
