Trump Media & Technology Group Corp (NASDAQ:DJT) shares are trading lower Monday after the company released financial information from 2023 and warned of continuing operating losses.
What Happened: In a new regulatory filing with the SEC, former President Donald Trump’s Trump Media reported revenue of $4.13 million for full-year 2023. The company also reported a net loss of $58.19 million for the year.
The financial disclosure comes a week after the company successfully completed its business combination with Digital World and began trading on the Nasdaq. The stock has rallied since the start of the year in anticipation of the merger and despite Wednesday’s drawdown, Trump Media still has a market cap of nearly $7 billion.
The filing states that nearly $40 million of the company’s net loss in 2023 was due to interest expense. Trump Media ended the year with just $2.6 million in cash, down from $9.8 million at the end of 2022, and warned that it expects losses to continue in 2024.
“TMTG has historically incurred operating losses and negative cash flows from operating activities … TMTG expects to continue to incur operating losses and negative cash flows from operating activities for the foreseeable future, as it works to expand its user base, attracting more platform partners and advertisers,” the company said in the filing.
“TMTG’s ability to become profitable and generate positive cash flow depends on TMTG’s success in growing its user base, platform partners, and advertisers … This growth is expected to come from the overall appeal of the Truth Social Platform.”
Trump owns 57.3% of Trump Media shares, per CNBC. The value of Trump’s stake in the company represents more than half of his total net worth. The former President is also set to receive another 36 million shares over the next three years as long as the stock hits target prices along the way, which are all well below the current stock price.
See Also: Is Trump Media & Technology Group Wall Street’s Newest Meme Stock?
DJT Price Action: Trump Media shares were down 24.4% at $46.82 at the time of publication, according to Benzinga Pro.
Photo: Evan El-Amin/Shutterstock.
