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Trump’s Truth Social Financial Reports Raises Brows

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The financial results from Trump Media & Technology Group (TMTG) this week cast serious doubts on the viability and future of its Truth Social platform.

According to CNN, TMTG revealed staggering losses of up to $58.2 million for the year 2023- a stark contrast to the $50.5 million profit it recorded in 2022. Revenue came in at a paltry $4.1 million, though this represented an increase from the prior year’s $1.5 million.

Perhaps the most concerning details observed by CNN is that TMTG’s revenue plummeted “39% year-over-year in the fourth quarter to just $751,500.” This anemic performance from the fledgling startup sent its shares plunging 24% on Monday, despite the stock being up nearly 200% year-to-date.

TMTG’s accountants warned about the company’s ability to remain a “going concern” – effectively questioning whether it can stay operational without a cash infusion. The lifeline they definitely needed arrived last week when TMTG completed its merger to go public, unlocking around $300 million in financing.

This cash could provide a temporary reprieve as the company aims to build out infrastructure and scale the Truth Social platform. “The $300 million should remove the going concern risk,” stated Matthew Kennedy of Renaissance Capital.

However, the path forward remains an uphill battle. According to SimilarWeb, Truth Social’s user base appears to be swiftly eroding, with U.S. monthly active users across iOS and Android dropping 51% year-over-year in February to under 500,000.

Additionally, being dwarfed by X’s (Twitter) 75 million active users and lacking unique differentiators, Truth Social may struggle to reverse this decline.

Whether the influx of new capital and potential advertising tied to the 2024 election can propel a turnaround remains to be seen. But the financial realities are imposing on the previously optimistic projections that valued TMTG in the billions.

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