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
