{"id":34813,"date":"2023-07-12T18:51:54","date_gmt":"2023-07-12T22:51:54","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/rumble-still-too-early-to-tell-nasdaqrum\/"},"modified":"2023-07-12T18:51:56","modified_gmt":"2023-07-12T22:51:56","slug":"rumble-still-too-early-to-tell-nasdaqrum","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=34813","title":{"rendered":"Rumble: Still Too Early To Tell (NASDAQ:RUM)"},"content":{"rendered":"
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Since I last covered alternative streaming company Rumble Inc.<\/strong> (NASDAQ:RUM<\/span>) in November, we have two quarters of fresh performance metrics and corporate moves to assess. In addition to attempts at bringing content diversity to what has been dubbed a right-leaning streaming platform, Rumble also <\/span>purchased Callin, a live podcast streaming company. In this update, we’ll go over recent trends and announcements. We’ll also look at the <\/span>Rumble balance sheet and company valuation.<\/span><\/p>\n

Company Performance<\/h2>\n

In Q1 2023, Rumble recorded $17.6 million in revenue and $26 million in cost of revenue. These represented sequential declines and year over year gains in both metrics. The quarterly decline in revenue was attributed to dips in engagement following the mid-term elections. Notably, the pace of cost of revenue grew faster than revenues, and the result was a negative gross profit figure for the second straight quarter.<\/p>\n

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Data by YCharts<\/figcaption><\/figure>\n<\/p>\n

The increase in cost of revenue is primarily due to $21.1 million in content costs. From a corporate strategy standpoint, the company has taken steps to diversify its content offering on the Rumble platform. This is a good thing in my view, but it does necessitate outreach to non-political content creators.<\/p>\n

Popular Twitch (AMZN) and YouTube (GOOG) streamers Kai Cenat and IShowSpeed recently launched a joint show exclusive to Rumble – there have been just two episodes as of article submission. Acquiring these kinds of content creators will likely continue to be expensive, as Rumble doesn’t yet have the viewership level of competitors and the high value creators who come on need an incentive to create exclusive material for Rumble.<\/p>\n

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Data by YCharts<\/figcaption><\/figure>\n<\/p>\n

Opex also increased roughly in line with revenue of the prior year from $3 million to over $15 million. Approximately $2.3 million of that difference was due to share-based compensation (“SBC”). Revenue for the company is broken out into two different segments: advertising and licensing\/other.<\/p>\n

<\/span><\/p>\n\n\n\n\n\n<\/colgroup>\n\n\n\n\n\n
Quarter ended March<\/th>\n2023<\/th>\n2022<\/th>\nYoY Growth<\/th>\n<\/tr>\n
Advertising<\/td>\n$14,336,450<\/td>\n$2,509,526<\/td>\n471.28%<\/td>\n<\/tr>\n
Licensing and other<\/td>\n$3,278,925<\/td>\n$1,535,239<\/td>\n113.58%<\/td>\n<\/tr>\n
Total revenues<\/td>\n$17,615,375<\/td>\n$4,044,765<\/td>\n335.51%<\/td>\n<\/tr>\n
Ad share of rev<\/td>\n81.4%<\/td>\n62.0%<\/td>\n <\/td>\n<\/tr>\n<\/table>\n

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