Trump Media and Technology Group Reports Over $300 Million Net Loss in First Public Quarter
Trump Media and Technology Group reported a net loss of over US$300 million in its first public quarter. The loss includes non-cash expenses related to its merger with Digital World Acquisition Corp. Revenue for the first quarter was US$770,500, down from US$1.1 million in the previous year.
The company's earnings report, released recently, sheds light on its financial performance since going public.
During the three-month period ending on March 31, Trump Media recorded a loss of US$327.6 million. This figure includes US$311 million in non-cash expenses related to its merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC) that seeks to facilitate the public trading of young companies.
Comparatively, in the same period a year ago, Trump Media reported a loss of US$210,300. The company's revenue for the first quarter of this year amounted to US$770,500, primarily generated from its nascent advertising initiative. This represents a decline from the US$1.1 million revenue reported in the previous year.
In a statement, Trump Media emphasised its focus on long-term product development rather than short-term revenue. The company remains committed to building its platform and expanding its offerings.
Notably, Trump Media recently terminated its independent public accounting firm, BF Borgers, following allegations of "massive fraud" by federal regulators. This led to a delay in filing the quarterly earnings report. It is worth mentioning that Trump Media had already gone through two other auditors, with one resigning in July 2023 and another being terminated by the board in March.
Despite the financial challenges, Trump Media's stock, traded under the ticker symbol "DJT" on Nasdaq, saw a modest increase of 36 cents to US$48.74 in after-hours trading. The stock reached its peak at nearly US$80 in late March.
Trump Media and Technology Group reported a net loss of over US$300 million in its first public quarter.
The loss includes non-cash expenses related to its merger with Digital World Acquisition Corp.
Revenue for the first quarter was US$770,500, down from US$1.1 million in the previous year.
Source: AP NEWS