The parent company of Truth Social, the social media platform founded by former President Donald Trump, reported a loss of $400.9 million for the previous year. Additionally, its annual revenue dropped by 12%, amounting to $3.6 million.
Trump Media & Technology Group, the parent company, disclosed its earnings late on Friday, attributing the financial losses in part to a revenue-sharing agreement with an undisclosed advertising partner.
After winning the U.S. presidential election in November, Trump transferred all of his shares, valued at around $4 billion, to the Donald J. Trump Revocable Trust in December as a “bona fide gift.” Trump’s shares made up more than half of the company’s stock.
Donald Trump Jr., the eldest son of the former president, is the sole trustee of the trust and has exclusive authority over all securities held by the trust, including voting and investment power.
Trump created Truth Social after being banned from Twitter and Facebook following the January 6, 2021, Capitol riot.
The parent company of Truth Social, based in Sarasota, Florida, stated that due to its “early development stage,” it does not report traditional key performance indicators (KPIs) commonly used by other social media companies. These KPIs typically include metrics such as the number of users who have signed up for the service, how many use it daily or monthly, or how many view its advertisements.
Trump Media became a publicly traded entity in March after merging with Digital World Acquisition Corp., a shell company. This merger is an example of a special purpose acquisition company (SPAC), which provides young companies with a faster and more straightforward method of getting their shares publicly listed.