Pavel Durov, the founder of the widely-used messaging platform Telegram, announced on Monday that the company has reached a significant financial milestone: it is now profitable. In his statement, Durov revealed that Telegram's total revenue for the year 2024 has exceeded $1 billion.
This achievement comes two years after the introduction of Telegram's premium subscription service in 2022, which has successfully attracted 12 million paying users. These subscribers have been instrumental in boosting the app's revenue stream. Durov also shared that Telegram is closing the year with an impressive cash reserve of over $500 million, not including its cryptocurrency holdings.
Despite facing legal challenges and navigating through billions in debt, Telegram is poised to demonstrate its financial resilience. Durov highlighted that the company has made significant strides in debt repayment, having paid down a considerable portion of its $2 billion in debt bonds this fall. He noted that this repayment was facilitated by favorable market conditions for Telegram bonds. "We repaid a meaningful share of it this fall, taking advantage of favorable prices for the Telegram bonds," Durov mentioned, underscoring the importance of strategic financial management.
In an earlier interview with the Financial Times, Durov projected that the company would achieve profitability in 2025 and expressed aspirations for a future public offering.
Telegram boasts over 950 million monthly active users and has been actively rolling out features designed for businesses. The platform has introduced an ad revenue-sharing service, enabling creators to monetize their content through paid channels, and even launched a mini app store to diversify its offerings.
As Durov aims to reassure investors following his legal troubles, he emphasized the company's commitment to enhancing content moderation. Telegram has ramped up its efforts, employing over 750 contractors to oversee user-generated content, thereby addressing concerns about illicit activities on the platform.
Cryptocurrencies have played a pivotal role in Telegram's financial strategy. The company has sold hundreds of millions of dollars in digital assets this year, including Toncoin, a cryptocurrency developed within Telegram's ecosystem. Durov's team is also exploring new crypto-focused initiatives, such as enabling users to mine and exchange cryptocurrencies through third-party applications on the platform.
The combination of subscription fees, advertising revenue, and cryptocurrency sales has positioned Telegram for a robust financial future. With more than half of its revenue this year generated from advertising—largely thanks to partnerships with major brands like Samsung—the company is on a strong growth trajectory.
As Telegram secures its financial footing, it aims to move beyond its legal challenges, maintain its independence, and ultimately prepare for an initial public offering. Analysts like Raúl Castañón from S&P Global Market Intelligence have noted that establishing a sustainable business model is crucial for the company's long-term success. With its substantial user base now in place, Telegram is well-positioned for continued growth and innovation in the competitive messaging app landscape.
Zainab Y.
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