Former president Donald Trump’s social-media company lost over $58 million and generated very little revenue last year, the parent company of Truth Social disclosed Monday.
The Trump Media & Technology Group lost $58.2 million while generating only $4.1 million in revenue in 2023, according to a new Securities and Exchange Commission filing, after profiting $50.5 million in 2022. Last year’s newly disclosed losses may be cause for concern for TMTG investors who sent the stock price soaring after its initial public offering last week.
The new figures come almost a week after Truth Social became a public company and TMTG completed its $300 million merger with Digital World Acquisition Corp. — a move that saw the parent company’s stock peak at $79 per share last Tuesday. Following the new SEC filing, TMTG’s stock dropped about 13 percent Monday morning and is trading about $51 per share.
Wall Street values TMTG and Truth Social at more than $8 billion, despite the companies’ financial struggles and the social-media platform’s 5 million users. Truth Social launched in February 2022, a year after the former president was banned from Twitter, now known as X, in the wake of the January 6 Capitol riot.
The company’s revenue, all of which comes from advertising on Truth Social, in the last quarter of the year amounted to $751,000, down from $1 million in the previous quarter. In contrast, Reddit made over $800 million in revenue last year and Twitter generated $665 million in revenue ahead of its initial public offering in 2013.
Notably, TMTG paid nearly $40 million in interest expenses last year and had a $16 million operating loss.
In the SEC filing, TMTG’s accountants said the losses “raise substantial doubt about its ability to continue as a going concern.” In November, accountants previously warned that the company may not survive unless it completes its merger to go public.
Ahead of Truth Social’s public debut, Trump’s wealth increased to an estimated $6.8 billion because of his 60 percent stake in the social-media company. With his newly acquired net worth, Trump joined the ranks of the world’s 500 richest people.