In 2023, Trump Media Lost $58 Million, A Net Loss Of More Than 25%

(CTN News) – Despite revenue of $4.1 million in 2023, Trump Media, a company closely associated with former President Donald Trump, lost $58.2 million in 2023.

Shares of Trump Media & Technology Group were down more than 25% by 1:08 p.m. Eastern Time.

However, after last year’s loss was revealed in the company’s 8-K filing to the Securities and Exchange Commission, its market capitalization remained over $6.8 billion.

According to the filing, $39.4 million in interest expense contributed to the net loss.

An inquiry about the new filing was not immediately answered by a company spokesperson.

Trump Media’s filing shows its net profit in 2022 was $50.5 million while its revenues were only $1.47 million.

Cash on hand ended 2023 with just $2.7 million, according to filings.

Trump Media, which owns Truth Social, which the former president regularly used, could continue to suffer losses for some time to come.

In the filing, which came a week after TMTG began trading on Nasdaq under the ticker DJT, the company anticipates operating losses for a long time.

Additionally, Trump’s involvement could put the company at greater risk than other social media companies, according to the filing.

In its previous financial statement for the first three quarters of 2023, TMTG disclosed to regulators that it had identified “material weaknesses in its internal control over financial reporting.”

This “identified material weakness” still exists, according to Trump Media on Monday.

Trump owns 57.3% of Trump Media, a stake valued at more than $4 billion, representing more than half of his total net worth, according to Forbes.

Additionally, Trump Media’s stock will have to hit a series of price benchmarks during the next three years for him to earn 36 million more shares. Earlier Monday, the stock price of the company was well below these targets.

After merging with DWAC, a special purpose acquisition company, Trump Media’s stock price rocketed Tuesday after it began trading. Trump’s initials, DJT, now appear on the newly merged company’s stock.

Stock purchases by Trump’s supporters contribute to the company’s high valuation, analysts note, since they are excited about owning a company associated with Trump.

However, that enthusiasm creates unique risks for the company. According to its new 8-K filing, Trump Media “may face greater risks due to the focus of its offerings and the involvement of the president.”

Users could be discouraged, content providers or advertisers harassed, TMTG’s platform might be hacked, the need for Truth Social would diminish if First Amendment speech were not suppressed, Truth Social would face criticism for its moderation practices, and stockholder lawsuits would increase.

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