Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Rumble (NASDAQ: RUM) and its peers.
AI-driven content creation, personalized media experiences, and digital advertising are evolving, which could benefit companies investing in these themes. For example, companies with a portfolio of licensed visual content or platforms facilitating direct monetization models could see increased demand for years. On the other hand, headwinds include growing regulatory scrutiny on AI-generated content, with many publishers balking at anything that gets no human oversight. Additional areas to navigate include the phasing out of third-party cookies, which could make traditional ways of tracking the online behavior of consumers (a secret sauce in digital marketing) much less effective.
The 7 digital media & content platforms stocks we track reported a slower Q1. As a group, revenues missed analysts’ consensus estimates by 3.5% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 1.4% on average since the latest earnings results.
Best Q1: Rumble (NASDAQ: RUM)
Founded in 2013 as a champion for content creator rights and free expression, Rumble (NASDAQ: RUM) is a video sharing platform that positions itself as a free speech alternative to mainstream platforms, offering creators more favorable revenue-sharing opportunities.
Rumble reported revenues of $23.71 million, up 33.7% year on year. This print exceeded analysts’ expectations by 4.1%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ EPS estimates.
Rumble's Chairman and CEO, Chris Pavlovski, commented, “Rumble reported strong first-quarter 2025 results, highlighted by 34% year-over-year revenue growth to $23.7 million, driven by increased subscription revenue and monetization across our video and advertising platforms. MAUs of 59 million reflect improved user retention and continued product momentum following the U.S. election cycle. Key partnerships with major brands like Netflix, Crypto.com, and Chevron marked early wins for Rumble advertising, while progress in the Rumble Cloud business included new government and sports vertical clients, such as El Salvador and the Tampa Bay Buccaneers. With these new announcements and developments on the sales front, we remain energized by the potential for this business. We also further advanced the Rumble Wallet, which we plan to release later this year, supporting our international expansion. With our balance sheet fortified, significant tailwinds supporting our business, and Tether now closed, we have entered a new era for Rumble.”
Rumble achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 24.5% since reporting and currently trades at $9.67.
Is now the time to buy Rumble? Access our full analysis of the earnings results here, it’s free.
Vimeo (NASDAQ: VMEO)
Originally launched in 2004 as a platform for filmmakers seeking a high-quality alternative to YouTube, Vimeo (NASDAQ: VMEO) provides cloud-based video creation, editing, hosting, and distribution software that helps businesses and creators make, manage, and share professional-quality videos.
Vimeo reported revenues of $103 million, down 1.8% year on year, outperforming analysts’ expectations by 1.6%. The business had a very strong quarter with an impressive beat of analysts’ EPS estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 11.5% since reporting. It currently trades at $4.56.
Is now the time to buy Vimeo? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: IAC (NASDAQ: IAC)
Originally known as InterActiveCorp and built through Barry Diller's strategic acquisitions since the 1990s, IAC (NASDAQ: IAC) operates a portfolio of category-leading digital businesses including Dotdash Meredith, Angi, and Care.com, focusing on digital publishing, home services, and caregiving platforms.
IAC reported revenues of $570.5 million, down 8.6% year on year, falling short of analysts’ expectations by 29.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
IAC delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 7.4% since the results and currently trades at $37.99.
Read our full analysis of IAC’s results here.
Stride (NYSE: LRN)
Formerly known as K12, Stride (NYSE: LRN) is an education technology company providing education solutions through digital platforms.
Stride reported revenues of $613.4 million, up 17.8% year on year. This number beat analysts’ expectations by 3.6%. Aside from that, it was a mixed quarter as it also recorded full-year revenue guidance topping analysts’ expectations but a significant miss of analysts’ EPS estimates.
Stride scored the highest full-year guidance raise among its peers. The stock is up 12.6% since reporting and currently trades at $160.43.
Read our full, actionable report on Stride here, it’s free.
Ziff Davis (NASDAQ: ZD)
Originally a pioneering technology publisher founded in 1927 that became famous for PC Magazine, Ziff Davis (NASDAQ: ZD) operates a portfolio of digital media brands and subscription services across technology, shopping, gaming, healthcare, and cybersecurity markets.
Ziff Davis reported revenues of $328.6 million, up 4.5% year on year. This print surpassed analysts’ expectations by 1.4%. However, it was a slower quarter as it recorded a significant miss of analysts’ EPS estimates and full-year EPS guidance in line with analysts’ estimates.
The stock is up 1.2% since reporting and currently trades at $32.75.
Read our full, actionable report on Ziff Davis here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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