Trump Media and Technology Group, the company affiliated with former US President Donald Trump that operates Truth Social, reported revenue of $770,500 for the first quarter of 2024 and a net loss of $327.6 million.
Shares of Sarasota, Florida-based TMTG – which claims to be a “haven for free expression amid increasingly harsh censorship from big tech companies” – began trading on March 26, 2024 on Nasdaq under the symbol “DJT” following its merger. with special purpose acquisition company Digital World Acquisition Corp. (DWAC). As of Monday’s closing price of $48.38/share, TMTG has a market capitalization of approximately $6.6 billion.
Trump owns approximately 64.9% of the outstanding shares of Trump Media & Technology Group, currently worth approximately $4.3 billion (although he is not permitted to sell TMTG stock for a period of time). period of six months after the start of trading in the company’s shares).
In the first quarter, the Company recorded $311 million in non-cash expenses resulting from the conversion of promissory notes and the associated elimination of prior liabilities, immediately prior to the closing of TMTG’s merger with DWAC. Trump Media and Technology Group reported an operating loss of $12.1 million in the first quarter, based on adjusted EBITDA calculations; about half of that amount – $6.3 million – consisted of one-time payments related to the closing of TMTG’s merger with DWAC.
“At this early stage of the company’s development, TMTG remains focused on long-term product development, rather than quarterly revenues,” the company said when announcing first quarter 2024 results. “Adding features at Truth Social, launching live TV streaming and growing its ecosystem, the company first aims to develop a best-in-class product line that can then be leveraged to grow revenue and drive long-term value. term. »
TMTG said its “nascent advertising initiative” “will continue to evolve as TMTG implements its vision.”
The company plans to launch a new “live TV streaming platform” for the Truth Social app for Android, iOS and web. In a later phase, it said, TMTG will launch “standalone Truth Social over-the-top (“OTT”) streaming apps for phones, tablets and other devices,” followed by Truth Social streaming apps “for domestic television.
As of March 31, TMTG said, its cash and cash equivalents balance was $273.7 million. The company “believes it has sufficient working capital to finance its operations for the foreseeable future,” it said when announcing first-quarter results.
TMTG’s quarterly report and financial statements were reviewed by Semple, Marchal & Cooper, which the company named an independent registered public accounting firm effective May 4, 2024. This occurred after the SEC charged l former TMTG auditor, BF Borgers, of “massive fraud” in preparing more than 1,500 regulatory files for public companies.
Trump Media and Technology Group said that, based on data provided to the company, as of April 29, 2024, the company’s shares were owned by more than 621,000 shareholders, “the vast majority of whom are retail investors.”
TMTG launched Truth Social in early 2022; the company has not revealed how many people use the service. Trump Media & Technology Group was created in 2021 after the former president was kicked off Twitter (now called incitement to violence in the context of the events of January 6. 2021, attack on the US Capitol, which aimed to overturn the results of the 2020 election. Trump’s accounts have been reinstated by Meta’s X, Facebook and Instagram, YouTube and others, but he continues to use Truth Social as your favorite social media platform.
“TMTG’s success depends in part on the popularity of our brand as well as the reputation and popularity of President Donald J. Trump. The value of the TMTG brand could decline if the popularity of President Donald J. Trump were to suffer,” the company said in a section of its 10-Q filing titled “Key Factors Affecting Results of Operations.” The section continues: “Adverse reactions to publicity relating to President Donald J. Trump, or the loss of his services, could have an adverse impact on TMTG’s revenues, results of operations and its ability to maintain or generate a consumer base. President Donald J. Trump is involved in numerous lawsuits and other matters that could damage his reputation. Additionally, TMTG’s business plan hinges on President Donald J. Trump bringing his former social media followers onto TMTG’s platform. In the event that one of these or other events causes its subscribers to lose interest in its messages, the number of users of our platform may decrease or not increase as we had assumed.
News Source : variety.com
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