Trump Media and Technology Group reports over $300 million net loss in initial public quarter

In a surprising turn of events, Trump Media and Technology Group, the owner of Truth Social, former President Donald Trump’s social networking site, reported a staggering loss of over $300 million in the last quarter. This revelation came as the company released its first earnings report since going public.

The $327.6 million loss for the three-month period ending on March 31 included $311 million in non-cash expenses related to its merger with Digital World Acquisition Corp. This merger was facilitated by a special purpose acquisition company (SPAC), which allowed Trump Media to go public more quickly.

Despite the significant loss, Trump Media only generated $770,500 in revenue during the first quarter, primarily from its advertising efforts. This marked a decline from the $1.1 million in revenue the company reported a year earlier.

In a statement, Trump Media emphasized its focus on long-term product development rather than short-term revenue gains. The company’s decision to prioritize product development may have contributed to its lower revenue figures.

Additionally, Trump Media recently parted ways with its auditor, BF Borgers, following allegations of “massive fraud” by federal regulators. This change in auditors delayed the filing of the quarterly earnings report.

Despite the financial challenges, shares of Trump Media saw a slight increase in after-hours trading, climbing 36 cents to $48.74. The stock, trading under the ticker symbol “DJT,” debuted on Nasdaq in March and reached a peak of nearly $80 in late March. The future of Trump Media and Truth Social remains uncertain as the company navigates these financial setbacks.