Trump Media and Technology Group DJT, the owner of Donald Trump's social networking site Truth Social, reported a loss of over $300 million last quarter, marking its first earnings report as a publicly traded company.
What Happened: For the three months ending Mar. 31, the company posted a loss of $327.6 million, which included $311 million in non-cash expenses related to its merger with Digital World, a company created specifically to merge with a target business.
This merger is an example of a special purpose acquisition company, which provides young companies with quicker and easier routes to go public.
Trump Media reported $770,500 in revenue for the first quarter, primarily from its “nascent advertising initiative.”
"At this early stage in the company's development, TMTG remains focused on long-term product development, rather than quarterly revenue," said Trump Media in its earnings release.
Why It Matters: The financial report comes after a series of significant events for Trump Media. In early May, the company handed Trump a stock bonus worth $1.8 billion, pushing his stake in the company beyond $5.7 billion. This was awarded for maintaining the stock price above $17.50 for 20 consecutive trading days.
Shortly after, Trump Media’s tech-ad partner, Rumble, sued Google for over $1 billion, alleging monopolistic practices in its digital advertising products.
Trump Media also overhauled its auditors amid SEC fraud allegations and called for a legislative probe into the short-selling of its shares, a move that was criticized as a “diversion tactic” by financial journalist Herb Greenberg.
Price Action: DJT traded at $48.45 in after-hours on Monday, up 0.14%. The stock has risen 177.25% year-to-date, according to the data from Benzinga Pro.
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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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