Trump Media and Technology Group, the company that owns former President Donald Trump’s social networking site Truth Social, reported a net loss of over $300 million in its first public quarter. The three-month period ending March 31 showed a loss of $327.6 million, including $311 million in non-cash expenses related to its merger with Digital World Acquisition Corp, a special purpose acquisition company (SPAC).
In contrast to the high losses, the company generated revenue of $770,500 in the first quarter, mainly from its advertising initiative. Despite these losses, Trump Media emphasized that its focus at this early stage of development is on long-term product development rather than immediate revenue generation.
Recently, Trump Media faced controversy when it fired an auditor due to allegations of massive fraud. The company dismissed independent public accounting firm BF Borgers on May 3, which caused a delay in the filing of the quarterly earnings report. Prior to this incident, Trump Media had already changed auditors multiple times, highlighting their challenges in maintaining stable financial oversight.
Despite these challenges, shares of Trump Media saw a slight increase in after-hours trading on May 4th, climbing 36 cents to $48.74. The stock began trading on Nasdaq in March under the ticker symbol “DJT” and reached a peak of nearly $80 in late March. As investors continue to watch closely the company’s financial performance and handling of audit issues as it navigates the public market.
