Trump’s Truth Social lost $16.4 million last quarter and had under $1 million in revenue
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Donald Trump’s social media company Trump Media and Technology Group has reported a $16.4 million loss and less than $1 million in quarterly revenue, only months after it began trading publicly to much fanfare earlier this year.
The parent company of Truth Social said on Friday in its latest filing with the Securities and Exchange Commission that it had earned $837,000 in revenue for the second quarter of 2024 — down 30 percent from the same period last year — and had also paid millions of dollars to cover legal expenses related to its merger with special purpose acquisition company Digital World Acquisition Corp.
Further, a press release states: “Additionally, the Company incurred $3.1 million of IT consulting and software licensing expenses, primarily related to its software licensing agreement to power its new TV streaming service.”
This month, Trump Media launched the Truth+ streaming service and believes its strong balance sheet of $344 million in cash and equivalents, with no debt, will enable the expansion and refinement of its new offering.
Nevertheless, its market capitalization of nearly $5 billion is considered an extraordinarily high valuation given its very modest sales.
The latest financial results are not especially surprising given how in April the company reported a $58 million loss for last year, leading to a collapse in its stock price.
At launch on March 27, shares in Trump Media closed at $66.22. On Friday, at market close, they were $26.21.
Trump Media stock prices have been volatile for nearly the entirety of its life as a publicly traded asset. Trump himself is the largest shareholder in the company 78.75 million shares that equates to almost 58 percent of the common stock.
In the wake of the assassination attempt on the former president, the company saw its stock price rise by 33 percent in Monday trading after a tumultuous weekend.
Trump Media saw a 48 percent price spike before the opening bells rang, putting the company on track for its single best trading day since it debuted in March.
Truth Social plays a major role in Trump’s campaign for reelection, with the former president usually posting several times a day.
He has 7.5 million followers on the site, which he started having been deplatformed by both Twitter and Facebook following the January 6, 2021, Capitol riot.
