Trump Media & Technology Group Corp., the parent company of former President Donald Trump's Truth Social platform, reported significant financial losses in the first quarter of this year. The company disclosed in a filing with the U.S. Securities and Exchange Commission that it lost over $320 million, with small revenue coming from advertising on Truth Social.
The company's revenue from advertising totaled just $770,500 in the first three months of the year, down from $1.1 million in the same period last year. In addition to the advertising revenue decline, Trump Media also reported a loss of about $320 million, including non-cash expenses related to the merger with Digital World Acquisition Corp.
Despite the financial setbacks, Trump Media reported having nearly $274 million in cash and cash equivalents, allowing it to fund its operations for the foreseeable future. CEO and former Republican Rep. Devin Nunes expressed confidence in the company's ability to grow and fulfill its mission, emphasizing a focus on long-term product development over short-term revenue.
The company's market capitalization currently stands at $6.61 billion, and it recently started trading on the Nasdaq under Trump's initials. Trump Media plans to expand its user base, attract more platform partners and advertisers, and explore potential mergers and acquisitions activities. The company also aims to enhance the Truth Social platform by developing a live TV streaming feature.
As the 2024 presidential election approaches, the company's financial performance will be closely watched. Trump Media's ability to navigate the competitive social media landscape and attract users and advertisers will be key factors in determining its long-term success.