Trump Media, valued at $7 billion, booked less than $1 million in first-quarter sales
Trump Media & Technology Group, a startup majority-owned by former President Donald Trump that is valued at nearly $7 billion after going public in March, said it booked $770,500 in revenue during the first quarter, down from $1.1 million during the year-ago period.
The company, whose main asset is the social media network Truth Social, also reported losing $327.6 million during the first three months of 2024 due largely to a charge for a financial transaction, according to a Monday regulatory filing. That compares with its year-earlier loss of $210,000.
The report offers a glimpse into the finances of the newly public company, which says its mission is to provide an alternative to Facebook and other social media platforms. Since going public, Trump Media — whose shares trade under the ticker DJT, the same as former President Donald Trump's initials — have had a wild ride, sinking in its first few weeks of trading before rebounding to reach its current market capitalization.
The volatility in its share price has prompted some analysts to compare Trump Media with meme stocks — companies that trade on social media buzz rather than traditional financial yardsticks such as profitability and revenue growth.
The decline in first-quarter revenue could prompt questions about Trump Media's strategy and Truth Media's ability to appeal to a broad group of users and advertisers. While big losses aren't uncommon among tech startups, investors typically want to see strong revenue growth because it indicates that a fledgling business can grow quickly and eventually turn a profit.
In a statement on Monday, Trump Media said its focus is on "long-term product development, rather than quarterly revenue."
The company added that it plans to "increase revenue and drive long-term value" through new features, such as a streaming service that it is now developing.
"We are particularly excited to move forward with live TV streaming by developing our own content delivery network, which we believe will be a major enhancement of the platform," Trump Media CEO Devin Nunes said in the statement.
Trump Media said the $327.6 million loss was due a $311 million expense related to the conversion of promissory notes. Excluding that cost and other expenses, the company lost $12.1 million in the quarter, compared with a loss of $3.6 million in the same period a year earlier.
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Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.
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