Yahoo Finance Truth Social Parent Company Suffers Over $320 Million Loss In 1st Quarter Of The Year
The parent company of former President Donald Trump’s Truth Social platform lost over $320 million in the year’s first quarter. It brought in small revenue, according to a filing with the U.S. Securities and Exchange Commission.
Trump Media & Technology Group Corp. released its financial results for the fiscal quarter ending March 31. This marks the company’s first earnings report since it became publicly traded in March after completing a merger with Digital World Acquisition Corp.
The company reported generating just $770,500 in advertising revenue in the first three months of this year, all of it coming from ads on products and services on Truth Social. During the same time period last year, the company brought in $1.1 million in advertising revenue.
Trump Media also suffered a loss of about $320 million, including $311.0 million “in non-cash expenses arising from the conversion of promissory notes, and the associated elimination of prior liabilities” prior to the completion of the merger on March 25, the company said in a press release discussing the earnings.
The company lost $210,300 over the same time period last year.
“TMTG expects to continue to incur operating losses and negative cash flows from operating activities for the foreseeable future as it works to expand its user base, attracting more platform partners and advertisers,” the company said in the filing.
Still, Trump Media reported having just under $274 million in cash and cash equivalents, which allows it “to fund its activities for the foreseeable future.”
Former Republican Rep. Denin Nunes, the company’s CEO, said Trump Media “is well-positioned at this early stage to grow quickly and fulfill our mission.”
“Our positive working capital allows us to explore and pursue a wide array of initiatives and innovations to build out the Truth Social platform, including potential mergers and acquisitions activities,” Nunes added. “We are particularly excited to move forward with live TV streaming by developing our own content delivery network, which we believe will be a major enhancement of the platform.”
The company insists its primary focus at this early stage is “long-term product
development, rather than quarterly revenue.”
Trump Media, which started trading on the Nasdaq earlier this year under Trump’s initials, has a current market cap of $6.61 billion.
CORRECTION: A previous version of this article incorrectly reported the amount of money Truth Social earned in advertising revenue in the first three months of 2024, as well as the amount the company lost over the same period in 2023.
