Shares of Rumble Inc. (NASDAQ: RUM) tumbled 5.62% in pre-market trading on Tuesday following the release of the company's fourth quarter and full-year 2024 financial results. Despite beating revenue expectations, a significant earnings miss and a substantial derivative-related loss appear to have spooked investors.
The video-sharing platform reported Q4 revenue of $30.2 million, surpassing analysts' estimates of $29.73 million and marking a 48% increase from the same period last year. However, Rumble posted a net loss of $236.8 million, or $1.15 per share, compared to a loss of $29.3 million, or $0.14 per share, in Q4 2023. This figure fell well short of the FactSet consensus estimate of an $0.11 loss per share.
The company attributed the wider loss primarily to a $184.7 million non-cash charge related to the change in fair value of derivative expense associated with Tether's recent strategic investment in Rumble. Excluding this and other one-time items, Adjusted EBITDA loss narrowed to $13.4 million, an improvement from a $30 million loss in the same quarter last year. Despite the progress in reducing cash burn and growing its user base, the market's initial reaction suggests investors are focusing on the bottom-line miss and potential dilution concerns stemming from the Tether deal.
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