Gross Margin % is calculated as gross profit divided by its revenue. Rumble's Gross Profit for the
three
months ended in Dec. 2023 was $-19.15 Mil. Rumble's Revenue for the
three
months ended in Dec. 2023 was $20.39 Mil. Therefore, Rumble's Gross Margin % for the quarter that ended in Dec. 2023 was -93.90%.
The historical rank and industry rank for Rumble's Gross Margin % or its related term are showing as below:
RUM'
s Gross Margin % Range Over the Past 10 Years
Min: -80.52 Med: 17.55 Max: 46.67
Current: -80.52
During the past 5 years, the highestGross Margin % of Rumble was 46.67%. The lowest was -80.52%. And the median was 17.55%.
RUM's Gross Margin % is ranked worse than 98.9% of 2631
companies
in the Software industry
Industry Median: 41.74
vs RUM: -80.52
Rumble had a gross margin of -93.90% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Rumble was 0.00% per year.
Rumble Gross Margin % Historical Data
The historical data trend for Rumble's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Rumble's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rumble's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Rumble's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rumble's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Rumble (NAS:RUM) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Rumble had a gross margin of -93.90% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Rumble Gross Margin % Related Terms
Thank you for viewing the detailed overview of Rumble's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Rumble Inc is a free-to-use video-sharing platform where users can watch, share, like, comment, and upload their own videos. Users can subscribe to channels to stay in touch with recent creator content and access video-on-demand uploaded, and live content streamed, by creators. Geographically, it generates a majority of its revenue from the US.
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