6 Million

In Q1 2024, Trump Media and Technology Group (TMTG), the company associated with former U.S. President Donald Trump and the operator of Truth Social, announced its financial results. The company reported $770,500 in revenue but also revealed a significant net loss of $327.6 million.

TMTG's shares began trading on Nasdaq under the ticker symbol "DJT" after merging with Digital World Acquisition Corp. (DWAC) on March 26, 2024. With a market capitalization of approximately $6.6 billion, the company's closing price per share was $48.38. Trump himself holds around 64.9% of the outstanding shares, amounting to a stake worth about $4.3 billion. However, due to restrictions, he is currently unable to sell his TMTG shares for the next six months.

The net loss for the quarter was primarily driven by non-cash expenses of $311 million related to the conversion of promissory notes and the elimination of prior liabilities just before the merger with DWAC. TMTG recorded an operating loss of $12.1 million in Q1, with adjusted EBITDA calculations showing that approximately half of that amount, $6.3 million, consisted of one-time payments tied to the closing of the merger.

TMTG emphasized that, at this early stage, its focus remains on long-term product development rather than short-term revenue. The company intends to enhance Truth Social by introducing new features, launching a live TV streaming platform, and expanding its ecosystem. These efforts are aimed at creating a robust portfolio of products and increasing revenue in the future.

TMTG also mentioned its nascent advertising initiative, which will evolve as the company implements its vision. It plans to launch a live TV streaming platform integrated with the Truth Social app for Android, iOS, and web. Subsequently, TMTG will release stand-alone Truth Social over-the-top (OTT) streaming apps for various devices, followed by streaming apps for home TV.

With a cash balance of $273.7 million as of March 31, TMTG expressed confidence in having sufficient working capital to support its operations for the foreseeable future.

The company provided information indicating that, as of April 29, 2024, it had more than 621,000 shareholders, predominantly retail investors. TMTG's flagship platform, Truth Social, was launched in early 2022, but no details regarding the user base have been disclosed.

TMTG's success is closely tied to the popularity of its brand and the reputation of President Donald J. Trump. The company acknowledges that any adverse reactions or loss of interest in Trump's messages could impact its revenues, operations, and ability to maintain or grow its user base. It should be noted that Trump's social media accounts have been reinstated on platforms such as X (formerly Twitter), Meta's Facebook and Instagram, and YouTube, but he continues to actively engage with his followers on Truth Social.

Overall, TMTG remains committed to its long-term strategy, prioritizing product development and positioning itself as a haven for free expression amidst concerns of increasing censorship by Big Tech companies.

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