Trump Media's 2024 Financials: A Mixed Bag

Trump Media & Technology Group, the company behind Truth Social, recently released its 2024 financial results. The numbers show a mixed picture. The company reported a loss of $2. 36 per share and revenue of $3. 6 million. This is a 12% drop in revenue compared to the previous year. The net loss also widened significantly, jumping from $58. 2 million in 2023 to $400. 9 million in 2024. This is a substantial increase in losses. The company faced several challenges in 2024. One major issue was the merger-related legal fees. These fees were incurred due to obstacles from the Securities and Exchange Commission under former President Biden's administration. Additionally, a change in a revenue-sharing agreement with an advertising partner led to lower sales. The company also mentioned that revenue varied as they tested a new advertising initiative on their Truth Social platform. Trump Media debuted on Nasdaq under the ticker "DJT" in March 2024. The stock nearly doubled in value throughout the year, partly due to Donald Trump's victory in the U. S. presidential election in November. However, as of the latest report, the stock was down about 11% year to date, giving it a market capitalization of $6. 59 billion. The company's approach to metrics is different from other social media giants like Meta. Trump Media does not focus on traditional metrics such as the number of active users or average revenue per user. Instead, they believe this could distract from their strategic goals. In the fourth quarter, Trump Media launched its Truth+ video streaming service on Android, iOS, and the web. This expansion into video streaming is a notable development for the company. Despite the challenges, Trump Media has a significant cash reserve. As of the latest report, the company has $776. 8 million in cash, cash equivalents, and short-term investments, with only $9. 6 million in debt. This financial position gives the company some flexibility for future ventures. Trump Media is also exploring opportunities to partner, merge with, or acquire other entities. This strategy could help the company evolve into a holding company with subsidiaries across various industries. Chairman and CEO Devin Nunes, a former Republican Congressman, highlighted this potential growth path in a recent statement. Trump's social media presence is also noteworthy. On Truth Social, he has 8. 9 million followers. On X, owned by Tesla CEO Elon Musk, Trump has 100. 9 million followers. This wide reach on different platforms is a significant asset for the company.