Trump Media & Technology Group, the parent company of Truth Social, has revealed that it lost more than $400 million in 2023. The company's annual revenue also dipped by 12%, falling to just $3.6 million. These financial setbacks have drawn attention, especially as the platform faces scrutiny about its viability in a competitive social media landscape.

One of the key factors behind the reported loss was a revenue-sharing agreement with an undisclosed advertising partner. This agreement seems to have further strained the company's financial situation, despite the high-profile nature of Truth Social.

After Donald Trump's political loss in the 2020 election, the former president's social platform was created as a response to his ban from major social media networks like Twitter and Facebook. Truth Social has since struggled to establish a solid user base, and Trump Media has been criticized for its lack of transparency when it comes to metrics like user growth and engagement.

In 2022, Trump transferred his shares in the company — valued at around $4 billion — to the Donald J. Trump Revocable Trust. His son, Donald Trump Jr., is now the sole trustee and holds voting power over the company’s securities. This move adds a layer of complexity to the company’s structure, potentially limiting its ability to make independent decisions without the family’s involvement.

Despite the significant losses, Trump Media became publicly traded in 2023 after merging with a special purpose acquisition company (SPAC), Digital World Acquisition Corp. While this merger was touted as a way for Truth Social to access public market capital, it also comes with the inherent risks that come with such financial vehicles, especially in the early stages of a business.

Interestingly, Trump Media has been coy about traditional key performance indicators (KPIs), which are commonly used in the tech and social media sectors to measure user growth and engagement. This lack of data has left industry observers questioning the platform's true impact and future prospects.

As Truth Social continues to navigate financial struggles and competition from established platforms, it remains to be seen whether the company can reinvent itself or if its financial trajectory will continue downward.