May 20, 2024 - Business

Trump's Truth Social loses $328 million in the first quarter

Illustration of the Truth Social logo with a downward arrow running through the center

Illustration: Natalie Peeples/Axios

Trump Media & Technology Group, the parent company of Truth Social, on Monday disclosed that it lost $327.6 million on just $770,500 in revenue during the first quarter of 2024.

Why it matters: Even by upstart social media standards, these are awful numbers.

Zoom in: Pay more attention to the revenue than the loss.

  • TMTG brought in less money between January and March of this year than in the same period for 2023 (which already wasn't anything to write home about). For context, Twitter regularly topped $1 billion in quarterly revenue before its sale to Elon Musk.
  • The giant loss is largely driven by one-time expenses related to TMTG's merger in March with a blank-check company, which is how it went public. That said, TMTG is nowhere close to profitable.

The intrigue: TMTG surprised many by releasing these numbers, given that its auditor recently agreed to stop auditing public companies after being accused of "massive fraud" by federal securities regulators.

  • It does not yet appear to have hired a replacement, noting that all of the quarterly and annual financials are unaudited.

What's missing: TMTG doesn't disclose user numbers, unlike other publicly traded social media companies.

The bottom line: TMTG continues to command a market value north of $6 billion, which is the sort of price multiple that most other meme stocks can only dream of achieving.

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