This photo illustration shows an image of former President Donald Trump reflected on a mobile phone screen showing the Truth Social app on February 21, 2022 in Washington, DC.
Stephanie Reynolds | AFP | Getty Images
Trump MediaThe social media company whose major shareholder is former President Trump reported a net loss of more than $16 million in its latest financial quarter on Friday, with its already meager revenue falling 30% to just $836,900.
Trump Media owns the Truth Social app, which the former president frequently uses.
Shares of Trump Media, which trades under the ticker DJT, fell sharply from a high of more than $71 a share shortly after it began trading publicly in late March following a merger with a so-called special purpose acquisition company.
Trump Media shares closed at $26.21 per share on Friday afternoon, down 0.49%.
The company has a market capitalization of nearly $5 billion, which is very high considering its very limited sales.
In a 10-Q report released Friday afternoon, Trump Media reported a loss of $16.37 million in the second quarter ended June 30, compared with a loss of $22.8 million in the second quarter of 2023.
The company said about half of last quarter’s losses were due to legal expenses related to Trump Media’s merger with Digital World Acquisition Corp.
“In addition, the company incurred $3.1 million in IT consulting and software licensing fees primarily related to its software licensing agreement to power its new television streaming service,” Trump Media said in a press release.
Revenue in the most recent quarter was $839,000, compared with $1.2 million in the same period last year.
“A significant portion of the decline is due to a revenue share change with one of our advertising partners related to an agreement to improve the company’s short-term, pre-business combination financial position,” Trump Media said in a statement.
“Additionally, revenue varied as we selectively tested a nascent advertising program 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 no debt.
Trump Media said in a statement: “The company believes its strong balance sheet will be able to expand and complement its new television streaming platform Truth+, which will be launched in August 2024 on the company’s custom content delivery network (‘CDN ‘) on launch.
“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 Ohio Sen. J.D. Vance will face Democratic nominees Vice President Kamala Harris and Minnesota Gov. Tim Waugh in the November election Waltz.
