Trump Media Revenue Down, Loss Widens To $400M
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Trump Media & Technology Group (NASDAQ: DJT), the company behind former President Donald Trump’s Truth Social platform, disclosed its full-year 2024 financial results, revealing significant challenges.
The company reported a staggering net loss of $400.9 million, a dramatic increase from the $58.19 million loss in 2023.
This substantial loss was accompanied by a 12.4% year-over-year decline in revenue, which fell to $3.62 million from $4.13 million in the previous year.
Several factors contributed to these disappointing results.
A significant portion of the losses stemmed from non-cash items, including $107.4 million in stock-based compensation and $225.9 million from changes in derivative liabilities.
Additionally, the company faced substantial legal expenses, with approximately half of the $61 million used in operating activities going towards legal fees.
These legal costs were partly attributed to “obstruction” from the SEC during the company’s public listing process.
A revised revenue-sharing agreement with an undisclosed advertising partner also negatively impacted the company’s top line.
This arrangement resulted in lower sales, highlighting the need for TMTG to diversify its revenue streams and potentially renegotiate existing partnerships.
Despite these challenges, TMTG ended 2024 with a strong cash position of $776.8 million, a significant increase from $2.6 million at the end of 2023.
This substantial cash reserve provides the company with a financial cushion as it continues to develop its ecosystem and explore potential mergers and acquisitions across multiple industries.
The market’s reaction to these results was relatively muted, with shares falling approximately 1% in extended trading.
However, it’s worth noting that TMTG’s stock nearly doubled in value over the course of 2024, reflecting investor optimism about the company’s long-term prospects.
Looking ahead, TMTG faces the challenge of translating its user base and brand recognition into sustainable revenue growth.
The company is expanding its offerings, including the development of Truth+, a video streaming service currently in beta testing, and the launch of Truth.Fi, a new financial services and FinTech brand.
These initiatives could potentially open up new revenue streams and help offset the current losses.
Sources: eToro, MarketScreener
