Trump Media posts $400 million loss in 2024

Shares of Trump Media and Technology Group fell about 1% in extended trading Friday after the Truth Social operator released its 2024 results.

According to CNBC, the company’s revenue fell 12% year-over-year, according to its annual report, while the net loss rose to $400.9 million compared to $58.2 million in 2023, a loss of $2.36 per share, on revenue of $3.6 million.

Trump Media debuted on the Nasdaq under the symbol “DJT” in March, after merging with Digital World Acquisition Corp. Although the stock nearly doubled in value during 2024, following Donald Trump’s victory in the US presidential election in November, the stock is down about 11% since the beginning of the year, giving the company a market value of $6.59 billion.

Trump Media incurred legal fees related to the merger, as a result of obstruction by the Securities and Exchange Commission during the Biden administration, according to the company’s statement, and the revenue decline was partly due to a change in a revenue-sharing agreement with an advertising partner.

The annual report noted that revenue was volatile due to a trial of a new advertising initiative on the Truth Social platform.

Unlike Meta and other social media companies:

Trump Media said it does not rely on traditional metrics such as active users or average revenue per user, suggesting that it could distract from assessing strategic progress and growth.

Trump Media announced in the fourth quarter the launch of its Truth+ video streaming service on Android, iOS and the web. The company has not held an earnings call since the merger.

Trump owns 52% of the voting power of the company’s stock through a trust of which he is the sole beneficiary. On Truth Social, Trump has 8.9 million followers, while on X, owned by Elon Musk, he has 100.9 million followers.

Financial position:

Trump Media currently has $776.8 million in cash, cash equivalents and short-term investments, with $9.6 million in debt.

Chairman and CEO Devin Nunes, a former Republican congressman, said the company will continue to explore partnerships, mergers and acquisitions of other entities if TMTG evolves into a holding company with subsidiaries in multiple sectors.