Truth Social’s parent company reported a loss of more than $320 million in the first quarter of the year

The parent company of former President Donald Trump’s Truth Social platform lost more than $320 million in the first quarter of the year. It turned in little revenue, according to a filing with the U.S. Securities and Exchange Commission.

Trump Media & Technology Group Corp. reported financial results for the fiscal quarter ended March 31, the company’s first earnings report since it went public in March following its merger with Digital World Acquisition Corp.

The company reported generating just $770,500 in ad revenue in the first three months of this year, all from advertising products and services on Truth Social. During the same period last year, the company generated $1.1 million in ad revenue.

Trump Media also incurred a loss of about $320 million, including $311 million “in non-cash charges resulting from the conversion of promissory notes and the related elimination of prior obligations” before the merger closed on March 25, the company said in a press release discussing the earnings.

During the same period last year, the company incurred a loss of $210,300.

“TMTG expects to continue to experience operating losses and negative cash flow from operations for the foreseeable future as it works to expand its user base by attracting more platform partners and advertisers,” the company said in the filing.

Still, Trump Media said it has nearly $274 million in cash and cash equivalents, which allows it to “fund its operations for the foreseeable future.”

Former Republican congressman Denin Nunes, the company’s CEO, said Trump Media “is well-positioned at this early stage to grow rapidly and fulfill our mission.”

“Our positive working capital position allows us to explore and pursue a broad range of initiatives and innovations to expand the Truth Social platform, including potential mergers and acquisitions,” Nunes added. “We are particularly excited about the opportunity to move into live TV streaming by developing our own content delivery network, which we believe will be a significant enhancement to the platform.”

The company emphasizes that at this early stage its primary focus is on a “long-term product”
“development, not quarterly revenues.”

Trump Media, a company that began trading on the Nasdaq Stock Exchange earlier this year under Trump’s initials, has a current market capitalization of $6.61 billion.

ADJUSTMENT: A previous version of this article incorrectly stated the amount Truth Social earned from advertising in the first three months of 2024, as well as the amount the company lost during the same period in 2023.

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