William Simpson
Trump Media & Technology Group, a startup majority-owned by former President Donald Trump that is valued at nearly $7 billion after going public in Marchsaid it reported revenue of $770,500 during the first quarter, down from $1.1 million in the same period a year ago.
The company, whose main asset is the social media network Truth Social, also reported losing $327.6 million during the first three months of 2024 due largely to a charge for a financial transaction, according to a report from Monday. regulatory filing. This compares to the previous year’s loss of $210,000.
The report offers a glimpse into the finances of the newly public company, which says its mission is to provide an alternative to Facebook and other social media platforms. Since going public, Trump Media — whose shares trade under the ticker DJT, the same as former President Donald Trump’s initials — has had a wild ride, tanking in the first few weeks of trading before recovering to reach its current market capitalization.
Volatility in its share price has led some analysts to compare Trump Media to meme stocks — companies that trade based on social media buzz rather than traditional financial metrics like profitability and revenue growth.
The decline in first-quarter revenue could raise questions about Trump Media’s strategy and Truth Media’s ability to attract a broad group of users and advertisers. While big losses are not uncommon among technology startups, investors typically want to see strong revenue growth because it indicates that a fledgling company can grow quickly and eventually turn a profit.
On a declaration on Monday, Trump Media said its focus is on “long-term product development rather than quarterly revenue.”
The company added that it plans to “increase revenue and generate long-term value” through new features, such as a streaming service it is now developing.
“We are particularly excited to move forward with live TV streaming by developing our own content distribution network, which we believe will be a major enhancement to the platform,” Trump Media CEO Devin Nunes said in the statement.
Trump Media said the $327.6 million loss was due to a $311 million expense related to the conversion of promissory notes. Excluding this cost and other expenses, the company lost $12.1 million in the quarter, compared to a loss of $3.6 million in the same period a year ago.
