This illustration shows an image of former President Donald Trump reflected on a phone screen displaying the Truth Social app, in Washington, DC, on February 21, 2022.
Stefani Reynolds | AFP | Getty Images
Trump Mediathe social media company whose major shareholder is the former President Donald Trumpon Friday reported a net loss of more than $16 million in its most recent fiscal quarter, as the company’s already meager revenue fell 30% to just $836,900.
Trump Media owned Truth Social Appcommonly used by former president.
Trump Media stock price, transaction below DJT The stock has fallen sharply from a high of more than $71 a share shortly after it began public trading in late March following a merger with a so-called special purpose acquisition company.
Shares of Trump Media closed at $26.21 a share on Friday afternoon, down 0.49%.
The company has a market capitalization of nearly $5 billion, an unusually high valuation given the company’s very modest sales.
In one 10-Q Filing On 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 its loss last quarter was due to legal costs 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 costs, primarily related to a software licensing agreement to provide its new TV streaming service,” Trump Media said in a press release.
Revenue in the most recent quarter was $839,000 compared to $1.2 million in the same period last year.
“A significant portion of this decrease was due to a change in revenue sharing with one of our advertising partners, related to an agreement to improve the Company’s near-term financial position prior to the Business Combination,” Trump Media said in its 10-Q filing.
“Additionally, revenue also changed as we selectively tested a new advertising initiative on the Company’s Truth Social platform,” the company said.
Trump Media said the company ended the quarter with $344 million in cash and cash equivalents, with no debt.
“The Company believes its strong balance sheet will enable the expansion and improvement of its new TV streaming platform, Truth+, which will launch in August 2024 on the Company’s custom-built content delivery network (‘CDN’),” Trump Media said in a statement. press release.
“With a strong balance sheet and no debt, the Company believes it has sufficient working capital to fund its operations for the foreseeable future,” the company said.
Donald Trump, the Republican presidential nominee, and his running mate, Senator JD Vance of Ohio, will face off against the Democratic nominee, Vice President Kamala Harrisand Governor of Minnesota Tim Walz in the November election.
