Trump’s Truth Social Media Company reports $327 million loss in first quarter

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 significant loss includes $311 million in non-cash expenses related to its merger with Digital World Acquisition Corp, a special purpose acquisition company (SPAC) designed to facilitate faster public trading for emerging companies.

In contrast, a year earlier, TMTG reported a modest loss of $210,300. The company generated revenue of $770,500 in the first quarter, mainly due to its emerging advertising initiative, compared to $1.1 million in the same period last year.

“At this early stage in the company’s development, TMTG remains focused on long-term product development, rather than quarterly revenue,” the company said in its earnings release.

Earlier this month, TMTG dismissed BF Borgers as an independent accounting firm after federal charges against the accountant for ‘massive fraud’. This resignation, which occurred on May 3, delayed the filing of the quarterly report. TMTG had previously engaged at least two other accountants, one of whom resigned in July 2023 and another was terminated by the board in March before BF Borgers was rehired.

Despite the reported losses, TMTG shares rose 36 cents to $48.74 in after-hours trading. The stock, which traded on the Nasdaq under the ticker symbol “DJT,” peaked at nearly $80 in late March.

TMTG’s focus on long-term product development signals its commitment to building a robust platform, although the path to profitability appears challenging amid fluctuating revenues and significant operating costs.