Trump Media & Technology Group (TMTG) reported a significant financial setback, revealing a net loss of $400.9 million for the fiscal year 2024. This marks a dramatic increase from the $58.2 million loss recorded in 2023. Despite the financial challenges, the company remains undeterred by traditional metrics, focusing instead on strategic growth and development initiatives.
The company, which is known for its Truth Social platform where former President Donald Trump has amassed 8.9 million followers, is navigating a complex landscape. As of Friday, a trust controlled by President Trump holds 52% of the voting power in the company's stock, which has seen an 11% decline year-to-date. This translates to a market capitalization of $6.59 billion.
In its latest financial disclosures, Trump Media highlighted $776.8 million in cash, cash equivalents, and short-term investments against $9.6 million in debt. The company's stock, trading under the ticker "DJT" since its merger with Digital World Acquisition Corp last March, saw a slight decline of about 1% in extended trading following the earnings release.
The company's revenue took a hit as well, dropping 12% year-over-year to $3.6 million. This decline comes as Trump Media tests a new advertising initiative on Truth Social.
"Additionally, revenue has varied as we selectively test a nascent advertising initiative on our Truth Social platform," – Trump Media
In addition to these financial strains, Trump Media incurred merger-related legal fees due to alleged obstruction by former President Biden's Securities and Exchange Commission in 2024. Devin Nunes, one of the key figures at Trump Media, emphasized the potential distractions these legal challenges pose.
"could potentially divert its focus from strategic evaluation with respect to the progress and growth of its business," – Devin Nunes
In a bid to diversify and stabilize its revenue streams, Trump Media launched its Truth+ video streaming service across Android, iOS, and web platforms in the fourth quarter. Furthermore, Nunes expressed the company's intent to explore various strategic opportunities.
"We will continue to explore opportunities to partner, merge with, and acquire other entities that are able to function effectively if TMTG evolves into a holding company with subsidiaries spanning several industries," – Devin Nunes