The download screen for Truth Social app is seen on a laptop computer, March 20, 2024, in New York. (AP Photo/John Minchillo, File)
SARASOTA, Fla. — Trump Media and Technology Group, the owner of former President Donald Trump’s social networking site Truth Social, lost more than $300 million last quarter, according to its first earnings report as a publicly traded company.
For the three months to March 31, the company posted a loss of $327.6 million, which it said included $311 million in non-cash expenses related to its merger with a company called Digital World Acquisition Corp., which was essentially a pile of cash looking for a target to merge with. It’s an example of a special purpose acquisition company, or SPAC, which can give young companies quicker and easier routes to getting their shares traded publicly.
A year earlier, Trump Media posted a loss of $210,300.
Trump Media said it collected $770,500 in revenue in the first quarter, largely from its “nascent advertising initiative.” That was down from $1.1 million a year earlier.
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“At this early stage in the company’s development, TMTG remains focused on long-term product development, rather than quarterly revenue,” Trump Media said in its earnings news release.
Changing auditors
Earlier this month, the company fired an auditor that federal regulators recently charged with “massive fraud.” The former president’s media company dismissed BF Borgers as its independent public accounting firm on May 3, delaying the filing of its quarterly earnings report, according to securities filings.
READ: Trump Media stock slides to more than 66% below its peak
Trump Media had previously cycled through at least two other auditors — one that resigned in July 2023, and another that was terminated by its board in March, just as it was re-hiring BF Borgers.
Shares of Trump Media climbed 36 cents to $48.74 in after-hours trading. The stock, which trades under the ticker symbol “DJT,” began trading on Nasdaq in March and peaked at nearly $80 in late March.