Trump mediaThe social media company, whose majority shareholder is former President Donald Trump, on Friday reported a net lack of greater than $16 million for its latest fiscal quarter, while its already meager revenue fell 30% to simply $836,900.
Trump Media owns the app Truth Social, which is regularly utilized by the previous president.
The stock price of Trump Media, which trades under the ticker symbol DJT, has fallen sharply from a high of over $71 per share shortly after the market opened 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, a decline of 0.49 percent.
The company's market capitalization is sort of five billion dollars, which is a very high valuation given its very modest revenue.
In a 10-Q Filing On Friday afternoon, Trump Media reported a lack of $16.37 million for the quarter ended June 30, in comparison with a lack of $22.8 million in the identical quarter in 2023.
About half of last quarter's loss was attributable to legal costs related to the merger of Trump Media with Digital World Acquisition Corp., the corporate 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 in comparison with $1.2 million in the identical quarter last yr.
“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 corporate said.
Trump Media said the corporate ended the quarter with $344 million in money and money equivalents and was debt-free.
“The Company believes its strong balance sheet will enable the expansion and refinement of its new TV streaming platform, Truth+, which launched in August 2024 on the Company’s custom content delivery network (‘CDN’),” 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 corporate 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 within the November election.
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