Trump Media and Technology Group Corp. (NASDAQ: DJT), the parent company of social media platform Truth Social, reported a first-quarter operating loss of $12.1 million based on adjusted EBITDA, compared to a loss of $3.63 million in the same period last year.
The company, which recently completed its merger with Digital World Acquisition Corp., cited one-time payments related to the merger as a significant factor in the increased loss.
CEO Devin Nunes highlighted the company's progress, stating, "TMTG is well-positioned at this early stage to grow quickly and fulfill our mission."
He emphasized the company's focus on expanding its platform, including the development of live TV streaming capabilities.
For the first quarter, TMTG also reported a GAAP net loss of $327.6 million, primarily due to $311.0 million in non-cash expenses from the conversion of promissory notes before the merger's closing.
Despite these figures, TMTG reported positive working capital, with $273.7 million in cash and cash equivalents, and believes it has sufficient funds to support operations moving forward.
Revenue for the quarter was $770,500, primarily from the company's early advertising efforts. TMTG is prioritizing long-term product development over short-term revenue, aiming to create a suite of products that can drive future revenue growth and long-term value, it said.
The company recently completed the research and development phase of its new live TV streaming platform and will begin scaling its content delivery network.
This rollout will occur in three phases, including the introduction of streaming live TV to the Truth Social app and the release of stand-alone over-the-top (OTT) streaming apps.