Rumble Faces Slowdown Amid User Losses and Financial Struggles

A recent report highlights Rumble's decline in users and mounting losses, raising concerns for investors. Despite a potential revenue boost from upcoming U.S. elections, the company must stabilize growth metrics to regain investor confidence.

Date: 04-11-2024

AI Rating: 4

The report outlines Rumble's challenging situation over the past few years, marked by a considerable decline in stock price from an initial trading value of $12.44 to approximately $6. The streaming platform has drastically reduced its number of monthly active users (MAUs), dropping from 80 million at the end of 2022 to 53 million by mid-2024.

Key metrics discussed include:

Revenue: Rumble's revenue grew from $39.4 million in 2022 to $81 million in 2023, but the growth rate dropped to just 106% year-over-year in 2023 from an astonishing 316% in 2022. In the first half of 2024, revenue remained at $40.2 million, suggesting a potential stagnation in growth.
Net Income (Loss): The net losses ballooned from $11.4 million in 2022 to $116.4 million in 2023, indicating the company struggles to manage its expenditures effectively. By the first half of 2024, the losses slightly narrowed to $70.1 million.

The average minutes watched on Rumble also fell, further signaling issues with user engagement despite an increase in daily video uploads. Analysts expect Rumble to grow its revenue by 29% to $104.7 million by the end of 2024 but anticipate continued significant losses.

Potential tailwinds include the upcoming U.S. elections which may attract more viewers, and possible regulatory challenges faced by competitors like Google. However, Rumble has yet to demonstrate a solid path to profitability, and intrinsic valuations remain high compared to revenue.

Overall, Rumble's ability to convert potential growth opportunities into sustainable financial health will be critical in assessing its investment viability.

Stocks: RUM GOOGL FB