Trump Media and Technology Group, the parent company of former President Donald Trump's social networking platform Truth Social, recently disclosed a significant financial loss in its first earnings report since becoming a publicly traded entity. The company reported a staggering loss of $327.6 million for the quarter ending March 31, primarily attributed to $311 million in non-cash expenses related to its merger with Digital World Acquisition Corp.
As a special purpose acquisition company (SPAC), Digital World Acquisition Corp. facilitated Trump Media's transition to a publicly traded company, offering a streamlined process for shares to be traded on the market. This financial maneuver resulted in a substantial increase in losses compared to the previous year, where Trump Media reported a loss of $210,300.
Despite the significant financial setback, Trump Media managed to generate $770,500 in revenue during the first quarter, primarily driven by its early-stage advertising efforts. This revenue figure marked a decline from the $1.1 million reported in the same period a year earlier.
In response to recent regulatory concerns, Trump Media terminated its auditor, BF Borgers, who was facing allegations of fraudulent practices. This decision led to a delay in the filing of the quarterly earnings report. The company had previously changed auditors multiple times, with one resigning in July 2023 and another being terminated by the board in March.
Emphasizing its focus on long-term product development over short-term revenue gains, Trump Media stated that it remains committed to advancing its offerings in the digital media landscape. Despite these challenges, the company's stock, trading under the symbol 'DJT' on Nasdaq, experienced a modest increase of 36 cents in after-hours trading, reaching $48.74. The stock had initially peaked at nearly $80 in late March following its debut on the market.
