Trump Media and Technology Group, the parent company of President Trump’s social networking site Truth Social, said it lost $400.9 million last year, while its annual revenue declined 12% to $3.6 million.
Trump Media & Technology Group, which reported its earnings late Friday, said its annual loss was due to non-cash charges including $107.4 million in stock-based compensation and an accounting loss of $225.9 million linked to changes in the fair value of derivative liabilities.
The company, which trades under the ticker DJT — the same initials as Mr. Trump — said a “significant portion” of its revenue decline was caused by a change in a revenue-sharing agreement with an advertising partner, which it didn’t disclose.
In recent months, Trump Media has rolled out a streaming service and applied for trademarks for a line of exchange-traded funds, a type of investment fund, as well as separately managed accounts. Trump Media CEO Devin Nunes said the goal is to provide investment vehicles focused on American energy and manufacturing companies, as well as “a competitive alternative to the woke funds and debanking problems that you find throughout the market.”
Mr. Trump has debuted other business lines in recent months, rolling out his-and-her meme coins — the $Trump and $Melania coins — last month. He’s also recently announced Trump-branded perfumes and watches.
Transfer of DJT shares
After winning the U.S. presidential election in November, Trump in December transferred all of his shares — worth around $4 billion on paper — as a “bona fide gift” to the Donald J. Trump Revocable Trust. Trump’s shares amounted to more than half of the company’s stock.
Donald Trump Jr., the oldest of the president’s five children, is the sole trustee and has sole voting and investment power over all securities owned by the trust.
Trump created Truth Social after he was banned from Twitter and Facebook following the Jan. 6, 2021, Capitol riot.
Citing its “early development stage,” the parent company based in Sarasota, Florida, said it doesn’t report “traditional key performance indicators” used by other social media companies, such as how many people have signed up for the service, use it on a daily or monthly basis or see its ads.
Shares of DJT fell 28 cents, or 0.9%, to $30.39 on Friday. The stock market is closed on Presidents Day.
