Why Rumble stock is up 5% today

Social media company rumble (ROM 5.39%) had a fine Tuesday in terms of his stock. The stock price rose more than 5% on the day, thanks to an earnings report that beat analysts’ expectations. That performance easily beat the bubbly S&P 500which closed 1.7% higher on Tuesday.

Robust top line growth in the second quarter

Rumble’s second-quarter numbers were released Monday after market hours and reveal the company earned $22.5 million in revenue. That was up 27% year over year and comfortably beat the average analyst estimate of $19.7 million.

In terms of operational metrics, monthly average users (MAUs) — considered a critical metric for social media companies — also saw improvements. That number was 53 million for the previous quarter, up from 50 million in the previous quarter. The company did not hesitate to mention that this was the tenth consecutive quarter with a number of more than 40 million.

Rumble, which is popular among users who lean to the right in their politics, also managed to reduce its net loss. That was $26.8 million, or $0.13 per share, compared with a loss a year ago of $29.5 million. Again, this was good enough to beat the consensus forecaster’s estimate, which was for a loss of $0.15 per share.

Vague but optimistic guidance

In its earnings release, Rumble provided guidance for the full year, but was rather vague. It wrote that “if our sponsorship deals with advertisers continue to perform as expected and political advertising increases as the election cycle intensifies, we expect our revenue to continue to grow sequentially throughout 2024.”

The only forecast it offered for profitability is that it aims to “significantly move” toward breakeven for non-GAAP (adjusted) earnings before interest, taxes, depreciation and amortization (EBITDA) in 2025.