Considering its extremely low sales, the company’s market value of about $5 billion is an incredibly high valuation.
Former President Donald Trump is the firm’s largest stakeholder, Trump Media, a social media platform, announced a net loss of more than $16 million for the last financial quarter on Friday. The company primarily attributed this loss to legal costs as well as consulting and licensing fees.
Trump Media, the company behind the Truth Social app that the former president frequently uses, also revealed that, in comparison to the same period last year, its already pitiful income for the three months that concluded on June 30 fell by 30%.
Traded under the DJT ticker, Trump Media’s stock price has plummeted from a peak of over $71 a share not long after becoming public in late March as a result of a merger with a purported special purpose acquisition firm. The share price of Trump Media finished at $26.21 on Friday afternoon, down.49%.
Considering its extremely low sales, the company’s market value of about $5 billion is an incredibly high valuation.
Trump Media recorded a $16.37 million loss for the quarter ended June 30, compared to a $22.8 million loss for the same quarter in 2023, in its 10-Q filing on Friday afternoon.
According to the firm, legal costs associated with Trump Media’s merger with Digital World Acquisition Corp. accounted for around half of the deficit for the most recent quarter.
According to a news statement from Trump Media, “In addition, the Company incurred $3.1 million in IT consulting and software licensing expenses, primarily related to its software licensing agreement to power its new TV streaming service.”
The most recent quarter’s revenue was only $839,000, as opposed to $1.2 million for the same period the previous year.
As to Trump Media’s 10-Q filing, “a substantial part of the decline was due to a modification in the revenue share with one of our advertising partners, in connection with an agreement intended to improve the Company’s short-term, pre-Business Combination financial position.”
As we carefully evaluate a new advertising campaign on the firm’s Truth Social platform, income has also fluctuated, according to the statement from the firm.
According to Trump Media, company had $344 million in cash and cash equivalents at the end of the quarter and no debt.
In a news statement, Trump Media stated, “The Company believes its strong balance sheet will enable the expansion and refinement of its new TV streaming platform, Truth+, which was launched in August 2024 on the Company’s custom-built content delivery network (‘CDN’)”.
The firm stated, “The Company believes it has sufficient working capital to fund operations for the foreseeable future with its strong balance sheet and zero debt load.”
In November’s election, Minnesota Governor Tim Walz, the Democratic nominee, Vice President Kamala Harris, and Republican front-runner Donald Trump, all of whom are senators from Ohio.
