Trump Media and Technology Group’s latest quarterly report revealed on Monday that the company lost over $320 million in the first quarter of 2024—and reiterated that their business plan boils down entirely to hoping former President Donald Trump can drive traffic to the site.
The report showed revenue tumbling from last year’s first quarter, with the company bringing in just over $770,000 in the first three months of 2024. Last year in the same period, the company pulled in over $1.1 million, a 31% drop.
“TMTG’s success depends in part on the popularity of our brand and the reputation and popularity of President Donald J. Trump,” Trump Media also outlined in a section of the report titled “Key Factors Affecting Results of Operations."
It explained how the value of the brand would be endangered by Trump’s popularity suffering and points to “numerous lawsuits and other matters” that could damage his reputation.
In addition, the company acknowledged that their business plan still relies on Trump driving his social media followers to Truth Social and that if they lose interest in his posts “the number of users on our platform could decline or not grow as we have assumed.”
"To the extent users prefer a platform that is not associated with President Donald J. Trump," Trump Media added, "TMTG’s ability to attract users may decrease," noting the site's struggle in gaining followers outside of hardcore MAGA supporters.
Trump Media also acknowledged their dependence on Trump in a registration statement they filed with the SEC in April, noting then that “the loss of his services … could adversely affect” the company’s revenues, and pointing out that he might sell his stock in the company after a lock-up period barring him from currently doing so expires in September.
The declining revenue was attributed to a change in revenue share with one of the company’s advertising partners, as well as varying revenue from a “nascent advertising initiative” on Truth Social. According to the same document, Trump Media has advertising agreements with the video streaming platform Rumble, which is selling ad space on Truth Social, and The Affinity Media Exchange, Inc. which also sells ads that are inserted onto Truth Social users’ feeds.
The huge losses come in part from merger expenses in converting millions of dollars worth of promissory notes—which are written promises to pay out a definite sum of money—to stock for executives and consultants involved in bringing the company public.
Trump Social Media guru Dan Scavino was one of the recipients of the company’s stock market bonanza, earning a $600,000 lump sum retention bonus and a promissory note worth $2.2 million. Longtime Trump ally Devin Nunes, who is the company’s CEO, also got a salary bump to $1 million a year, and 145,000 shares of stock currently worth over $6 million.
But the Trump fans over on Truth Social, many of who see buying the stock as a personal investment in the former president, were unperturbed by the dismal earning figures, sharing posts warning against FUD, which stands for “fear, uncertainty, and doubt” and urging further investments in the stock.
“Thank you MSM for all the fake FUD,” wrote @K2tog in the site’s $DJT group, named for the ticker the stock trades under.
“Picked up 2 more shares today. Mayb tomorrow and the next day too!” posted @robwayne74.
“Couldn't resist the $DJT discount!” added @TruthXTwit. “Had to pick up another 100 shares! HODL!”
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