Updated Apr 1, 2024 - Business

Trump's Truth Social lost $58 million in 2023

The Truth Social app icon is being displayed on a smartphone.

Photo: Jonathan Raa/NurPhoto via Getty Images

Former President Trump's social media company lost over $58 million on just $4.1 million in revenue during 2023, according to new SEC filings.

Why it matters: There is a massive disconnect between the financial fundamentals and stock performance of Trump Media & Technology Group, which is valued at more than $7 billion after going public last week.

By the numbers: The company lost top-line momentum, generating only $751,000 in Q4. It had topped $1 million in Q3.

  • All of the company's revenue comes from advertising on Truth Social, per the disclosures.
  • Most of its expenses are tied to interest on debt, although TMTG also had around a $16 million operating loss for 2023.

Zoom out: For context, Twitter generated around $665 million in revenue for the year leading into its IPO, and $5.2 billion in the final year before Elon Musk's takeover.

The big picture: The SPAC merger proceeds make TMTG financially viable for a while, but it's no longer possible to even pretend that the share price has any relation to the actual business.

  • At this point, owning TMTG is basically an in-kind donation to Donald Trump. Both financially and reputationally.

The bottom line: Peak SPAC wasn't in 2021. It was last week.

Go deeper: Truth Social faces harsh reality as a public company

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