SARASOTA, Fla. - Trump Media and Technology Group Corp. (NASDAQ:DJT), also known as TMTG, disclosed its financial results for the fiscal quarter ending March 31, 2024, today. The company, which operates the social media platform Truth Social, reported a cash balance of $273.7 million, comprising $233.7 million in unrestricted cash and $40 million in restricted accounts.
This financial position follows the company's merger with Digital World Acquisition Corp. and its subsequent public listing on March 26, 2024.
TMTG's CEO, Devin Nunes, expressed optimism about the company's capitalization and retail shareholder support, emphasizing the potential for growth and innovation, including live TV streaming development.
The company reported a first-quarter operating loss of $12.1 million based on non-GAAP Adjusted EBITDA calculations, with approximately $6.3 million attributed to one-time merger-related payments. Moreover, TMTG recorded $311.0 million in non-cash expenses due to the conversion of promissory notes before the merger, leading to a GAAP loss of $327.6 million for the quarter.
The company's revenue for the first quarter was $770,500, primarily from its early-stage advertising efforts. TMTG is prioritizing product development over immediate revenue generation, with plans to enhance Truth Social and launch live TV streaming to build out its ecosystem.
On April 16, 2024, TMTG announced the completion of its live TV streaming platform's research and development phase, with plans to scale up its content delivery network. The streaming content will be introduced in phases, starting with the Truth Social app, followed by stand-alone over-the-top streaming apps, and eventually home TV streaming apps. The company has signed contracts with a data center partner and a core hardware vendor for this initiative.
Data provided to TMTG indicates that as of April 29, 2024, the company's stock is held by over 621,000 shareholders, predominantly retail investors.
The information provided in this article is based on a press release statement.
InvestingPro Insights
Trump Media and Technology Group Corp. (NASDAQ:DJT), known for its platform Truth Social, has been navigating the stock market with a mix of short-term declines and mid-term gains. The latest metrics from InvestingPro reveal a nuanced picture of the company's stock performance.
Over the past week, the company experienced a slight decline of 1.28% in total return, yet when looking at a broader timeframe, TMTG's one-month price total return showed a 2.29% increase. This suggests that while the company faces short-term volatility, it has demonstrated resilience over the past month.
Moreover, the stock's six-month performance has been positive, with a total return of 2.98%, indicating a gradual upward trend amidst market fluctuations. Still, year-to-date, TMTG has seen a dip of 2.96%. These fluctuations are typical in the dynamic tech sector, especially for a company like TMTG, which is in the midst of expanding its product offerings and solidifying its market position.
InvestingPro Tips highlight the importance of considering both short-term performance and long-term potential when evaluating investment opportunities. For TMTG, the recent completion of its live TV streaming platform's R&D phase could signal future growth, aligning with the company's focus on product development and ecosystem expansion.
Investors might find additional value in the fact that the average daily volume over the past three months is a substantial 106.7 million, which reflects a healthy level of trading activity and investor interest in the stock.
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