Sonia Randhawa

April 1, 2024 2:33 PM | 2 minute read |

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Trump Media & Technology Group Corporation Shares fell on Monday after the company released financial information starting in 2023 and warned that operating losses would continue.

what happened: In a new regulatory filing with the SEC, the former president donald trump's Trump Media reported full-year 2023 revenue of $4.13 million. The company also reported a net loss of $58.19 million for the year.

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This financial disclosure comes one week after the company successfully completed its business integration with Digital World and began trading on the Nasdaq. The stock has been rising since the beginning of the year in anticipation of the merger, and despite Wednesday's sell-off, Trump Media's market capitalization still stands at nearly $7 billion.

Nearly $40 million of its 2023 net loss was due to interest expense, the filing said. Trump Media warned that it finished the year with just $2.6 million in cash, down from $9.8 million in cash at the end of 2022, and expects the losses to continue into 2024.

“TMTG has historically had operating losses and negative cash flow from operating activities…TMTG will continue to experience operating losses for the foreseeable future as it strives to grow its user base by attracting more platform partners and advertisers.” “We expect negative cash flow from operating activities to continue,” the company said in a filing.

“TMTG’s ability to be profitable and generate positive cash flow will depend on TMTG’s success in growing its user base, platform partners, and advertisers…This growth will depend on the Truth social platform’s overall We expect it to be driven by attraction.”

According to CNBC, Trump owns 57.3% of Trump Media stock. Trump's stake in the company is worth more than half of his total net worth. The former president also plans to receive an additional 36 million shares over the next three years, as long as the stock reaches his target price along the way, all of which are well below the current stock price.

SEE ALSO: Is Trump Media & Technology Group Wall Street's latest meme stock?

DJT Price Action: Trump Media shares were down 24.4% at press time to $46.82, according to Benzinga Pro.

Photo: Evan El-Amin/Shutterstock.