Trump Media reports second-quarter revenue fell 30% to less than $900,000

Trump Media and Technology Group, the social media company owned by former President Donald Trump, said its second-quarter revenue fell 30% to $836,900 from a year earlier.

The company, whose main asset is social media network Truth Social, also said it lost $16.4 million in the quarter, a smaller deficit than its loss of $22.8 million in the same period a year earlier, according to a regulatory filing Friday.

Trump Media, which trades under the ticker symbol DJT (Trump’s initials), has attracted a base of small investors who are acolytes of the former president, many of whom follow the stock’s ups and downs on Truth Social. While the company’s shares have fallen 51% in the past three months, Trump Media still has a valuation of about $5 billion, according to financial data firm FactSet.

This high valuation, along with the wild swings in its stock price, have prompted some analysts to compare the company to meme actionsor companies that trade based on social media buzz rather than traditional financial metrics such as revenue growth and profitability.

In a statement Friday, CEO Devin Nunes said the company’s plans include creating a Truth+ streaming service and “exploring many other growth opportunities, including mergers and acquisitions.”

In the regulatory filing, the company said all of its second-quarter revenue came from advertising on the Truth Social platform. It also blamed the 30% drop in ad sales on a change in revenue sharing with one of its advertising partners, which it did not name.

“Additionally, revenue has varied as we selectively test a nascent advertising initiative on the company’s Truth Social platform,” he added.

According to the regulatory filing, Trump Media describes itself as a technology company that has “experienced substantial growth” since launching Truth Social in 2022. While losses are common for tech startups, institutional investors typically want early-stage companies to show strong revenue growth, suggesting they will be able to turn a profit at some point.

The regulatory filing warns that the company expects to incur operating losses “for the foreseeable future” as it works to add more users and attract more advertisers.