Trump Media swings to quarterly profit; Truth API boosts revenue
FILE PHOTO: A man looks at this phone as a screen displays trading information about shares of Truth Social and Trump Media & Technology Group, outside the Nasdaq Market site in New York City, U.S., March 26, 2024. REUTERS/Brendan McDermid/File Photo
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Nov 9 : Trump Media & Technology Group swung to a third-quarter profit on Monday, while its revenue more than tripled from a year earlier, fueled by growth in its Truth API data-licensing business.
Shares of the company rose about 1 per cent in extended trading.
Founded by US President Donald Trump and known for its Truth Social platform, Trump Media & Technology Group has increasingly sought to transform itself from a social media company into a broader technology and investment business.
The company, which is in the process of merging with TAE Technologies in a pivot toward fusion energy, reiterated that the $6-billion deal would close in the current quarter.
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Earlier this year, Trump Media launched Truth API, describing it as a subscription-based data feed that provides licensed, low-latency access to publicly available Truth Social posts.
Truth API and the Truth+ streaming platform together added $1.8 million in subscription revenue, accounting for the bulk of the company’s revenue growth.
Revenue soared 205 per cent to $3.0 million in the quarter ended September 30.
Last month, Reuters reported that Truth Social has signed Bloomberg, Susquehanna International Group and Jump Trading as customers, with subscribers paying between $60,000 and $100,000 a month for faster access to Truth Social posts.
Trump Media shares have fallen nearly 70 per cent this year, including a roughly 32 per cent decline since Democrats won control of the House and Senate in the midterm elections, results widely seen as a rebuke of Trump’s policies.
“While the market was trading on headlines, the underlying business didn’t flinch,” interim CEO Kevin McGurn said on a post-earnings call. “Our balance sheet didn’t change from Tuesday to Wednesday. Our product traction didn’t reverse.”
The company recorded $409.7 million in net income, driven largely by gains on its cryptocurrency holdings and related securities. This compared to a net loss of $54.8 million a year earlier.
Source: Reuters
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