This photo illustration shows an image of former President Donald Trump reflected on a phone screen displaying the app Truth Social on February 21, 2022 in Washington, DC.
Stefani Reynolds | AFP |
Trump mediaThe social media company, whose majority shareholder is former President Donald Trump, on Friday reported a net loss of more than $16 million for its latest fiscal quarter, while its already meager revenue fell 30% to just $836,900.
Trump Media owns the app Truth Social, which is frequently used by the former president.
The share price of Trump Media, which trades under the ticker symbol DJT, has fallen sharply from a high of over $71 per share shortly after its IPO in late March following a merger with a so-called special purpose acquisition corporation.
Trump Media stock closed Friday afternoon at $26.21 per share, down 0.49 percent.
The company's market capitalization is almost five billion dollars, which is an extraordinarily high valuation given its very modest revenue.
In a 10-Q filing Friday afternoon, Trump Media reported a loss of $16.37 million for the second quarter ended June 30, compared to a loss of $22.8 million for the second quarter of 2023.
About half of last quarter's loss was due to legal costs related to the merger of Trump Media with Digital World Acquisition Corp., the company said.
“In addition, the company incurred IT consulting and software licensing costs of $3.1 million, primarily related to its software licensing agreement to provide its new TV streaming service,” Trump Media said in a press release.
Revenue last quarter was $839,000 compared to $1.2 million in the same quarter last year.
“A significant portion of the decrease was due to a change in revenue sharing with one of our advertising partners in connection with an agreement designed to improve the Company's near-term financial position prior to the business combination,” Trump Media said in its 10-Q filing.
“In addition, revenue fluctuated as we selectively test a new advertising initiative on the company’s Truth Social platform,” the company said.
Trump Media said it ended the quarter with $344 million in cash and cash equivalents and was debt-free.
“The Company believes its strong balance sheet will enable the expansion and further development of its new TV streaming platform, Truth+, which will launch on the Company's custom content delivery network ('CDN') in August 2024,” Trump Media said in a press release.
“With its strong balance sheet and zero debt burden, the company believes it has sufficient working capital to fund operations for the foreseeable future,” the company said.
Republican presidential candidate Donald Trump and his running mate, Senator JD Vance of Ohio, will face Democratic candidate Vice President Kamala Harris and Minnesota Governor Tim Walz in the November election.
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