Trump Media and Technology Group, the social media business linked to former President Donald Trump, disclosed a significant decline in its revenue for the second quarter, which fell by 30% to $836,900 compared to the same period a year ago. Despite this drop, the company's losses narrowed to $16.4 million from $22.8 million in the year-earlier quarter, according to a regulatory filing made public on Friday. The primary asset of the organization is Truth Social, a social media network that has amassed a following of small investors enthusiastic about the former president, closely monitoring the stock's performance on the platform.
The company's stock, which trades under the abbreviation DJT representing Trump's initials, has experienced a 51% decline in the past three months. Nevertheless, Trump Media still holds a valuation of approximately $5 billion, based on data from financial research firm FactSet. This valuation, coupled with volatile fluctuations in the stock price, has led some analysts to draw comparisons between Trump Media and meme stocks, which are driven by social media hype rather than conventional financial metrics like revenue growth and profitability. CEO Devin Nunes outlined the company's strategy in a statement on Friday, emphasizing plans to expand a Truth+ streaming service and investigate various avenues for growth, including potential mergers and acquisitions.
According to the regulatory filing, the entirety of the company's revenue for the second quarter originated from advertising on the Truth Social platform. Trump Media attributed the 30% decrease in advertising sales to modifications in revenue-sharing agreements with one of its advertising partners, without specifying the partner involved. The company also mentioned that revenue fluctuations were influenced by ongoing tests of an early-stage advertising initiative on the Truth Social platform. Despite labeling itself as a tech firm that has seen substantial growth since the introduction of Truth Social in 2022, Trump Media cautioned in the filing that it anticipates sustaining operating losses in the foreseeable future while it focuses on expanding its user base and attracting more advertisers.