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Trump Media & Technology Group Corp.(DJT) - 2025 Q1 - Quarterly Report
DJTTrump Media & Technology Group Corp.(DJT)2025-05-09 21:21

Financial Performance - Revenue for the three months ended March 31, 2025, increased by 50.7thousand,or750.7 thousand, or 7%, to 821.2 thousand compared to 770.5thousandforthesameperiodin2024[136].−Costofrevenuesurgedby770.5 thousand for the same period in 2024 [136]. - Cost of revenue surged by 243.3 thousand, or 260%, to 336.7thousandforthethreemonthsendedMarch31,2025,primarilyduetocontentlicenseanddatacenterleasecostsfortheTruth+platform[137].−Researchanddevelopmentexpensesdecreasedby336.7 thousand for the three months ended March 31, 2025, primarily due to content license and data center lease costs for the Truth+ platform [137]. - Research and development expenses decreased by 20,593.7 thousand, or 62%, to 12,564.9thousandforthethreemonthsendedMarch31,2025,drivenbylowerstock−basedcompensation[138].−Generalandadministrationexpensesfellby12,564.9 thousand for the three months ended March 31, 2025, driven by lower stock-based compensation [138]. - General and administration expenses fell by 39,617.1 thousand, or 61%, to 25,178.0thousandforthethreemonthsendedMarch31,2025,mainlyduetoreducedstock−basedcompensationawards[140].−Interestincomeincreasedsignificantlyby25,178.0 thousand for the three months ended March 31, 2025, mainly due to reduced stock-based compensation awards [140]. - Interest income increased significantly by 7,966.4 thousand, or 27,661%, to 7,995.2thousandforthethreemonthsendedMarch31,2025,attributedtohighercashbalancesandinterestearned[142].−Thetotaloperatingcostsandexpensesdecreasedby7,995.2 thousand for the three months ended March 31, 2025, attributed to higher cash balances and interest earned [142]. - The total operating costs and expenses decreased by 58,766.9 thousand, or 59%, to 40,356.2thousandforthethreemonthsendedMarch31,2025[134].−Interestexpensedecreasedby40,356.2 thousand for the three months ended March 31, 2025 [134]. - Interest expense decreased by 2,630.8 million, or 93%, to 186.8millionforthethreemonthsendedMarch31,2025,comparedto186.8 million for the three months ended March 31, 2025, compared to 2,817.6 million for the same period in 2024 [143]. - The loss from the change in the fair value of derivative liabilities decreased by 225,916.0million,or100225,916.0 million, or 100%, to 0.0 for the three months ended March 31, 2025, compared to 225,916.0millionforthesameperiodin2024[144].CashFlowandInvestments−AsofMarch31,2025,thecompanyreportedcash,cashequivalents,andshort−terminvestmentstotaling225,916.0 million for the same period in 2024 [144]. Cash Flow and Investments - As of March 31, 2025, the company reported cash, cash equivalents, and short-term investments totaling 758,981.6 thousand, with debt of 9,803.5thousand[120].−NetcashusedinoperatingactivitiesforthethreemonthsendedMarch31,2025,was9,803.5 thousand [120]. - Net cash used in operating activities for the three months ended March 31, 2025, was 9,737.8 million, an increase of 421.8millioncomparedto421.8 million compared to 9,316.0 million for the same period in 2024 [153]. - Net cash used in investing activities for the three months ended March 31, 2025, was 6,310.1million,comparedto6,310.1 million, compared to 0.0 million for the same period in 2024 [154]. - Net cash used in financing activities for the three months ended March 31, 2025, was 8,060.8million,adecreaseof8,060.8 million, a decrease of 288,533.3 million compared to 280,472.5millionprovidedinthesameperiodin2024[155].−Thecompanyanticipatesthatcurrentcashandcashequivalentswillbesufficienttofundoperationsforatleastthenext12months[148].−TheStandbyEquityPurchaseAgreementallowsthecompanytosellupto280,472.5 million provided in the same period in 2024 [155]. - The company anticipates that current cash and cash equivalents will be sufficient to fund operations for at least the next 12 months [148]. - The Standby Equity Purchase Agreement allows the company to sell up to 2,500,000.0 of common stock, subject to certain conditions [149]. - As of March 31, 2025, the company has sold a cumulative total of 20,330,365 shares of common stock for prices between 14.31and14.31 and 36.98 per share, generating proceeds of 449,874.6million[151].StrategicInitiatives−Thecompanyplanstoinvestupto449,874.6 million [151]. Strategic Initiatives - The company plans to invest up to 250 million in financial technology, including customized separately managed accounts and exchange-traded funds [132]. - The Truth+ streaming service has been rolled out in phases, with the latest release on Roku announced on March 19, 2025 [129]. - The company is actively pursuing mergers and acquisitions to diversify its offerings and expand into new sectors [133]. - The company aims to grow its initial product, Truth Social, and expand additional product offerings, including the development of its streaming technology platform, Truth+ [147].