Trump Media and Technology Group (TMTG), the company behind Donald Trump’s social networking platform Truth Social, reported a significant loss of $327.6 million for the first quarter of 2024. This figure was revealed in the company’s first earnings report as a publicly traded entity.
The substantial loss includes $311 million in non-cash expenses associated with its merger with Digital World Acquisition Corp, a special purpose acquisition company (SPAC) designed to facilitate quicker public trading for emerging companies.
In contrast, a year earlier, TMTG reported a modest loss of $210,300. The company generated $770,500 in revenue for the first quarter, primarily from its nascent advertising initiative, down from $1.1 million in the same period the previous year.
“At this early stage in the company’s development, TMTG remains focused on long-term product development, rather than quarterly revenue,” the company stated in its earnings release.
Earlier this month, TMTG dismissed BF Borgers as its independent public accounting firm following federal charges against the auditor for “massive fraud.” This dismissal, which occurred on May 3, delayed the filing of the quarterly earnings report. TMTG had previously gone through at least two other auditors, one resigning in July 2023 and another terminated by the board in March before BF Borgers was rehired.
Despite the reported losses, shares of TMTG rose 36 cents to $48.74 in after-hours trading. The stock, trading under the ticker symbol “DJT” on Nasdaq, had its peak at nearly $80 in late March.
TMTG’s focus on long-term product development signals its commitment to building a robust platform, though the path to profitability appears challenging amid fluctuating revenues and substantial operational costs.
Read more:
Trump’s Truth Social Media Company Reports $327 Million First-Quarter Loss