Trump Media & Technology Group, owner of former President Donald Trump's social networking site Truth Social, lost more than $300 million in the last quarter, according to its first earnings report as a publicly traded company. .
For the three months ended March 31, the company posted a loss of $327.6 million, including a $311 million non-cash charge related to its merger with a company called Digital World Acquisition Corp. is said to be included. Digital World Acquisition Corp. is basically a pile of cash looking for a merger partner. This is an example of something called a special acquisition purpose company (SPAC), which can provide a faster and easier route for startups to go public.
A year ago, Trump Media posted a loss of $210,300.
Trump Media said it collected $770,500 in revenue in the first quarter, primarily from “early advertising initiatives.” This was down from $1.1 million in the same period last year.
“At this early stage of the company's development, TMTG remains focused on long-term product development rather than quarterly revenue,” Trump Media said in an earnings news release.
Earlier this month, the company fired its auditor, who federal regulators recently accused of “massive fraud.” The former president's media company fired BF Borgers as its independent accounting firm on May 3 and delayed filing its quarterly financial report, according to securities filings.
Trump Media has previously cycled through at least two auditors, one of whom resigned in July 2023 and the other who was fired from the board in March just in time to rehire BF Borger. Ta.
Trump Media shares rose 36 cents to $48.74 in after-hours trading. The stock, which trades under the ticker symbol “DJT,” began trading on the Nasdaq in March and reached a high of nearly $80 in late March.
