Donald Trump's social media company 'Truth Social' reports net loss of over 500 billion yen in Q1 2024
Trump Media and Technology Group (TMTG), an affiliate of former US President Donald Trump and operator of the social media site 'Truth Social' launched by him, has filed an earnings report. According to documents submitted to the stock exchange, TMTG's first quarter 2024 sales were $775,000 (approximately 12.1 million yen) and net loss was $327.6 million (approximately 51.23 billion yen).
TMTG Reports First Quarter 2024 Results
(PDF file)
Trump Media: Q1 Revenue of $770,500 and Net Loss of $327.6 Million
https://variety.com/2024/digital/news/trump-truth-social-media-q1-2024-revenue-net-loss-1236010937/
Trump Media, owner of Truth Social, posts more than $300M net loss in first public quarter | AP News
https://apnews.com/article/trump-media-earnings-0ee9a4598f7da6c217720445605dfbdd
Trump Media lost $327.6 million in the first quarter of the year on revenue of just $770,500
https://www.nbcnews.com/business/business-news/trump-media-lost-3276-million-first-quarter-year-revenue-just-771000-rcna153165
TMTG was listed on the Nasdaq on March 26, 2024, and was a hot topic on the Internet as a 'meme stock,' rising by about 56% at the opening bell. However, documents released shortly after the listing revealed that Truth Social's annual losses were more than $58 million (about 8.8 billion yen), and the stock price fell 21% in a few days, causing a turbulent situation.
Donald Trump's social networking site 'Truth Social' lost 8.8 billion yen in one year and made only 600 million yen in revenue, causing its stock price to plummet 21% - GIGAZINE
According to TMTG's first earnings report filed in May 2024, the company recorded $311 million in expenses related to its merger with special purpose acquisition company Digital World Acquisition Corporation, resulting in a net loss of $327.6 million in the first quarter of 2024.
Following the release of the earnings report, TMTG's shares fell 5% at market close. The company's market capitalization was about $6.6 billion.
According to TMTG, the company's stock is held by more than 621,000 shareholders, the majority of whom are individual investors. Trump owns about 64.9% of the company's outstanding shares, which are valued at about $5.5 billion.
TMTG operates Truth Social with the goal of 'operating a safe harbor for freedom of expression amid increasingly strict censorship by Big Tech companies.' Although the specific number of users has not been disclosed, TMTG stated in the filing that since the social networking site is primarily supported by Trump supporters, 'if Trump's popularity declines, our brand value may decline.'
TMTG said, 'In the early stages of development, we are focused on long-term product development rather than quarterly revenue. We aim to increase revenue and develop a best-in-class product suite by adding live TV streaming to Truth Social and building an ecosystem.' As of March 31, 2024, TMTG's cash and cash equivalents were $273.7 million (approximately 42.82 billion yen), and the company reported that it 'believes it has sufficient working capital to cover its current operating expenses.'
◆ Forum is currently open
A forum related to this article has been set up on the official GIGAZINE Discord server . Anyone can post freely, so please feel free to comment! If you do not have a Discord account, please refer to the account creation procedure explanation article to create an account!
• Discord | 'Have you ever used Donald Trump's social networking site 'Truth Social'?' | GIGAZINE
https://discord.com/channels/1037961069903216680/1242412076912349268
Related Posts:
in Posted by log1p_kr