In 2023, Truth Social, the flagship product of Trump Media & Technology Group, reported significant losses of over $58 million and minimal revenue. This has raised concerns among experts who question the company’s multibillion-dollar valuation, likening it to the meme stock craze.
According to a regulatory filing on Monday, Trump Media incurred a loss of $58.2 million in 2023, a sharp decline from the $50.5 million profit in 2022. The company generated only $4.1 million in revenue, although this was an increase from $1.5 million in 2022.
Despite these financial struggles, Trump Media recently completed a long-delayed merger, securing approximately $300 million in cash. However, this development did not prevent a sharp decline in Trump Media’s stock value, which dropped more than 15% following the latest filings.
Trump Media’s accountants have expressed doubts about the company’s ability to continue as a going concern due to its substantial losses. This warning has been reiterated multiple times, emphasizing the urgency of completing its merger to go public.
While Trump Media lags behind in revenue generation compared to its competitors like X (formerly Twitter), which reported over $665 million in revenue in 2013, Truth Social is facing challenges with a significant decline in monthly active US users on iOS and Android platforms. In February alone, the number of users dropped by 51% year-over-year to 494,000 – significantly lower than X’s 75 million monthly active US users and even Threads platform which has more than ten times the number of users compared to Truth Social.
These challenges present a significant obstacle for Trump Media’s growth and profitability going forward
