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Trump Media lost more than $300 million last quarter on very little revenue | CNN Business

๐ŸŒˆ Abstract

The article discusses the financial results of Trump Media & Technology Group, the owner of the social media platform Truth Social, during the first quarter of 2022. The key points are:

๐Ÿ™‹ Q&A

[01] Financial Results

1. What were the financial results of Trump Media & Technology Group in the first quarter of 2022?

  • The company reported a loss of $327.6 million, driven mostly by one-time losses linked to the deal that brought the company public earlier this year.
  • The company generated just $770,500 of revenue, marking the second-straight quarter where its revenue totaled less than $1 million.
  • The company blamed the losses on non-cash expenses from the conversion of promissory notes and the elimination of previous liabilities.

2. What are the experts' views on the company's financial performance?

  • Experts have said the price tag on Trump Media stock defies logic given the company's financial results and small footprint in social media.
  • Matthew Kennedy, senior IPO market strategist at Renaissance Capital, said it is "unusual" for a company with this little revenue to have such a high valuation.
  • Jay Ritter, a finance professor at the University of Florida's Warrington College of Business, said "revenue is still anemic" for Trump Media and there is no reason to think the company will turn the corner and become profitable in the foreseeable future.

[02] Truth Social's Performance

1. How is Truth Social performing compared to other social media platforms?

  • In April, Truth Social experienced a 19% year-over-year drop in average daily active US users on iOS and Android to just 113,000.
  • In comparison, rival X (formerly known as Twitter) had more than 34 million users on iOS and Android, while Instagram's Threads had 3.5 million.

2. What is the company's focus at this stage?

  • The company said that at this "early stage" in its development, it "remains focused on long-term product development, rather than quarterly revenue."
  • The company acknowledged that its advertising business is just getting off the ground and expressed confidence that new products like streaming will boost its results in the future.
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