Trump Media Reports $770,000 in Revenue for First Quarter and Large Losses – The New York Times
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The former president’s social media company reported taking in $770,000 in advertising revenue in the first quarter, sharply down from the year-earlier period.
On Monday, former President Donald J. Trump’s social media company reported taking in $770,000 in advertising revenue in the first three months of the year, largely from its Truth Social platform, as it continued to incur hefty losses.
The company, Trump Media & Technology Group, completed a long-awaited merger in March with Digital World Acquisition Corporation, a cash-rich shell company that served as a vehicle for taking Trump Media public. After the merger, Trump Media said it had about $274 million in cash and cash equivalents on its balance sheet, which would enable the company to “fund operations for the foreseeable future.”
The public debut of Trump Media has been a boon to Mr. Trump, who owns a nearly 65 percent stake, worth about $6 billion. The company also boasts an equally lofty valuation of more than $7 billion based on the price of the company’s shares.
In a regulatory filing, the company said that it took in $770,000 in the past quarter, compared with $1.1 million in revenue in the year-ago quarter. The company said that much of the revenue “decrease was attributable to a change in the revenue share with one of our advertising partners.”
It’s hard to compare the year-ago period with the first quarter, which was dominated by expenses related to the completion of the company’s merger. In the first three months of the year, Trump Media had a net loss of $327.6 million, with $311 million of it resulting from “noncash expenses arising from the conversion of promissory notes.”
Upon the closing of the deal on March 25, about $40 million that Trump Media had raised from investors was converted into shares of the newly public company under the terms of those promissory notes.
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