Trump Media and Technology Group, the parent company of Truth Social, reported a loss of over $300 million in its first earnings report since becoming a publicly traded company. Despite this substantial loss figure, the company only generated $770,500 in revenue during the quarter, mostly from its advertising program. This was a decrease from the $1.1 million it made in revenue the previous year. Trump Media emphasized that its focus is on long-term product development rather than immediate revenue generation at this early stage.
In the same quarter a year prior, Trump Media had posted a loss of $210,300. The company attributed $311 million of this loss to non-cash expenses as a result of its merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC). SPACs provide young companies an easier way to go public.
Trump Media faced scrutiny after firing an auditor that had been charged with “massive fraud” by federal regulators. The company dismissed the auditor, BF Borgers, on May 3 and subsequently experienced delays in filing its quarterly earnings report. Prior to this, Trump Media had already gone through two other auditors. The stock of Trump Media saw a slight increase of 36 cents to $48.74 in after-hours trading following the earnings report. The stock, trading under the ticker symbol “DJT,” was listed on Nasdaq in March and had reached a peak of nearly $80 in late March.
