Trump Media and Technology Group, the social media business owned by former President Donald Trump, has reported a significant decline in revenue for the second quarter of this year. According to a regulatory filing on Friday, the company's revenue dropped by 30% to $836,900 compared to the same period last year.

The main asset of Trump Media, the social media network Truth Social, has also faced financial challenges in Q2. The company reported a loss of $16.4 million, marking a narrower shortfall compared to the $22.8 million loss experienced in the second quarter of the previous year.

Despite these setbacks, Trump Media continues to draw a substantial following from small investors who are loyal supporters of the former president. Many of these investors have been tracking the company's performance through the ups and downs of its stock on Truth Social. Currently, the company has a valuation of approximately $5 billion, according to financial data firm FactSet, even though its shares have plummeted by 51% in the last three months.

The notable valuation and volatile stock price of Trump Media have led some analysts to draw comparisons with meme stocks, which rely heavily on social media buzz rather than traditional financial indicators like revenue growth and profitability.

CEO Devin Nunes, in a statement released on Friday, outlined the company's plans for expansion. Trump Media aims to develop a Truth+ streaming service and explore various other avenues for growth, including potential mergers and acquisitions.

According to the regulatory filing, all revenue generated during the second quarter originated from advertising on the Truth Social platform. Trump Media mentioned that the 30% decline in advertising sales was primarily due to a change in revenue sharing with one of its advertising partners, although the partner was not disclosed.

The filing also acknowledged that revenue has fluctuated while the company selectively tests a new advertising initiative on the Truth Social platform. Despite experiencing losses, Trump Media considers itself a tech company that has experienced significant growth since the launch of Truth Social in 2022.

However, the filing warned that the company anticipates ongoing operating losses as it focuses on attracting more users and advertisers. While losses are common for tech startups, institutional investors typically look for strong revenue growth as an indication that profitability can be achieved in the future.

Trump Media remains determined to overcome its challenges and explore avenues for success in the rapidly evolving social media landscape. With the goal of building a robust user base and attracting advertisers, the company's focus on growth opportunities is expected to shape its trajectory in the coming months.