Updated Apr 1, 2024 - Business

Trump's Truth Social lost $58 million in 2023

Dan Primack

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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Trump's Truth Social lost $58 million in 2023

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