Trump Media & Technology Group reported a loss before income taxes of $327.6 million last quarter, as the company behind former President Donald Trump’s Truth Social says it’s prioritizing products over revenues.
That’s a net loss of $3.61 per share attributable to shareholders for the quarter, Trump Media said in its earnings report late Monday. The company made $770,500 in revenue during the three months ended March 31, down from $1.12 million in the same period last year.
At this early stage in its development, the company said it “remains focused on long-term product development, rather than quarterly revenue.” It said its stock was held by more than 621,000 shareholders, the majority of whom are retail investors.
Trump Media stock ended the day down 5%, at $48.38 per share. Its shares remained flat in pre-market trading on Tuesday. It was Trump Media’s first quarterly report since going public on March 26.
Rather than pursuing a traditional IPO, Trump Media went public by merging with Digital World Acquisition Corp. (DWAC), a special purpose acquisition company, or SPAC, following years of delays.
“After an unprecedented, years-long process, we have consummated our merger and dispensed with the vast bulk of merger-related expenses, leaving the Company well-capitalized and supported by a legion of retail shareholders who believe in our mission to provide a free-speech beachhead against Big Tech censors,” Trump Media CEO Devin Nunes said in a statement.
Nunes said the company is “particularly excited” about its forthcoming TV streaming platform, which it announced last month, and that it has already signed its first contracts with a data center partner to host its TV content distribution network and a core hardware vendor to obtain equipment for the project.
In the weeks since debuting on the Nasdaq $NDAQ, the company’s stock has been extremely volatile — skyrocketing to highs and plunging to lows from day to day, sometimes without any apparent explanation.
One week after going public, the company reported a 2023 loss from operations of almost $16 million, plus interest expense of $39.4 million, while bringing in just $4.1 million in revenue.
In the April 1 Securities and Exchange Commission filing, Trump Media disclosed that it “lacks the financial resources it needs to sustain operations for a reasonable period of time,” which it defined as one year from the filing date, raising “substantial doubt” as to its ability to continue operations. The company said it expects to continue incurring operating losses and negative cash flow “for the foreseeable future.”
Earlier this month, Trump Media replaced its audit firm after the SEC permanently banned the company from serving as accountants over findings of “massive fraud.” Trump Media warned last week that it would be filing its quarterly report late as a result of the changes.