Rumble (NASDAQ:RUM), an operator of video streaming sites, is no stranger to controversy and not just controversy stemming from the political nature of much of the content on its platforms. As I discussed recently, RUM stock itself has been the subject of controversy, after a widely-read “short report” dropped last month that called into question the stock’s merits as a long-term investment opportunity.

However, with the release of Rumble’s latest quarterly results, those critical of the stock may want to start reconsidering their view.

While far from a “perfect” earnings report, based on the key highlights discussed in the earnings release, it’s clear the company continues to make progress when it comes to both growing and monetizing its two main social media properties.

Although risky, and currently trading primarily on future potential instead of current results, that doesn’t mean Rumble is on the verge of taking an unrecoverable tumble.

RUM Stock and the Takeaway from Recent Earnings

On Nov. 14, Rumble reported its results for the quarter ending Sept. 30. Although the company reported a wider-than-expected net loss during the period, it did report very promising revenue growth numbers.

Prior to its earnings release, analysts were forecasting a top line of around $6.1 million. With actuals coming in at $11 million, Rumble trounced estimates by a wide margin. On a year-over-year basis, the revenue numbers were even more impressive. Compared to the prior year’s quarter, revenue was up 430%.

As the company ramps up its monetization efforts, with the launch of its in-house ad platform, revenue growth is currently outpacing user growth. Still, Rumble’s current rate of user growth isn’t anything to sneeze at.

Monthly Active User (MAU) numbers, an important metric for social media companies, also knocked it out of the park. 71 million users now actively use the platform, up 97% compared to Q3 2021.

This earnings report has had but a minimal impact on the performance of RUM stock. In fact, shares have moved lower since the release. Yet while these figures aren’t moving the needle in the near term, for long term investors, they are still an encouraging sign.

How Rumble Can Ultimately Prove the Skeptics Wrong

In the eyes of Rumble stock bears, the company’s platforms have little chance of garnering the user base and revenue needed to sustain (and grow) RUM’s current valuation. Namely, due to the politically-conservative nature of both Rumble.com and its other platform, the subscription-based streaming site Locals.com.

But while most political progressives aren’t likely to ever join its sites, that doesn’t mean their appeal is limited only to “hyper-conservatives,” as the aforementioned vocal short seller put it. Along with conservative media personalities, many pundits/commentators that lean left, such as Glenn Greenwald and Russell Brand, have signed on as content creators.

The company’s sites likely have a far larger total addressable market than the skeptics suggest. Furthermore, with the $356.7 million in cash proceeds from the special purpose acquisition company merger that took it public, Rumble has the war-chest necessary to continue “leveling up.”

This could be achieved by attracting other popular media personalities, by further monetization improvements, and/or perhaps through the acquisition of platforms/businesses that complement its main business. In turn, such moves could help RUM stock, after its bumpy start, lift off in a big way over the next few years.

The Verdict

While a promising growth play, keep in mind that Rumble remains a risky venture. While there’s a chance the company’s platforms can move beyond just their core conservative user base, it’s far from guaranteed.

Also, other risks, such as the current slowdown in the digital market, could have an impact on results in the coming quarters and could also serve to keep shares volatile in the short term.

Nevertheless, with the growing backlash (not just from conservatives) against “restrictive” policies from mainstream platforms, this social media rising star may have enough on its side to eventually scale into a large, profitable entity. This may make it worthy of a small, speculative position at current prices.

RUM stock earns a B rating in Portfolio Grader.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.