Telegram announced that its total revenue for 2024 surpassed $1 billion. The messaging app has endured significant legal, financial, and ethical challenges this year. With a mix of cryptocurrency ventures, advertising revenue, and subscription fees, Telegram is now poised to report its first-ever profit, a milestone in its tumultuous history.

A Billion-Dollar Leap

Telegram's financial breakthrough marks a stark departure from years of skepticism about its business viability. Revenue is set to surpass $1 billion this year, a leap from the $350 million reported last year.

Over half of the company's income comes from advertising, boosted by partnerships with major brands like Samsung. Paid subscriptions, priced at $5 monthly, have attracted 12 million users.

According to a post by Founder Pavel Durov on X, Telegram has around $500 million in cash reserves, excluding its crypto holdings. The company leveraged Toncoin, the cryptocurrency of its blockchain project which it was forced to abandon in 2020, to pay down substantial debt, the New York Times reported.

Telegram is now profitable 🏆

📈 This year, the number of Telegram Premium subscribers tripled, exceeding 12 million. Our ad revenue also increased a few times. Telegram's total revenue in 2024 surpassed $1 billion, and we are closing the year with more than $500 million in cash…

— Pavel Durov (@durov) December 23, 2024

Legal and regulatory scrutiny has long shadowed Telegram. Founder Pavel Durov's arrest in France this August amplified concerns over the app's role in hosting Hosting Hosting refers to the location of a broker’s technology stack. This is one of the most crucial elements of a brokerage that helps prevent the company from losing money due to being unable to mitigate latency risks.Brokers or exchanges are traditionally very vulnerable to latency arbitrage due to the speed with which financial markets move. The traditional datacenter locations for forex brokers are all centered at Equinix facilities around the globe. What Are the World’s Foremost Data Centers?Sin Hosting refers to the location of a broker’s technology stack. This is one of the most crucial elements of a brokerage that helps prevent the company from losing money due to being unable to mitigate latency risks.Brokers or exchanges are traditionally very vulnerable to latency arbitrage due to the speed with which financial markets move. The traditional datacenter locations for forex brokers are all centered at Equinix facilities around the globe. What Are the World’s Foremost Data Centers?Sin Read this Term illicit activities, from child exploitation to drug trafficking.

In response, Telegram has reportedly strengthened its content moderation team, now employing over 750 contractors to address problematic material. The platform also claims that it was already removing millions of pieces of harmful content each day. Despite these efforts, balancing advertiser and investor demands while retaining its reputation as a digital free-speech space still presents a challenge.

Cryptocurrency has been a key lifeline for Telegram. This year, the company sold hundreds of millions of dollars worth of digital assets, including Toncoin. Telegram has further ambitions in the crypto space, exploring hosting third-party application (not created or maintained by Telegram) features that would let users mine and trade cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term directly within the app.

The Road Ahead

Despite its achievements, Telegram's future remains uncertain. Durov, who is under investigation in France, faces potential jail time if convicted. As Telegram's sole owner and central figure, his legal troubles cast a long shadow over the company.

I'm still trying to understand what happened in France. But we hear the concerns. I made it my personal goal to prevent abusers of Telegram's platform from interfering with the future of our 950+ million users.

My full post below. https://t.co/cDvRSodjst

— Pavel Durov (@durov) September 5, 2024

Telegram has yet to outline a succession plan or establish an independent board, leaving investors to question its long-term stability. The company's next big test lies in scaling its monetization efforts while navigating legal challenges and user expectations.

For now, its $30 billion valuation and newfound profitability signal a turning point. As Telegram looks to solidify its standing with an IPO, its balancing act between profitability and accountability will be closely watched by both its users and the financial world.

In August, Durov was arrested by the French authorities at Le Bourget airport. The 39-year-old billionaire was reportedly detained after his private jet landed at the French airport. He was traveling to France from Azerbaijan.

"Using laws from the pre-smartphone era to charge a CEO with crimes committed by third parties on the platform he manages is a misguided approach," Durov previously commented. "I made it my personal goal to prevent abusers of Telegram's platform."