Telegram Revenue Soars 190% in 2024

The comprehensive report offers a rare glimpse into the messaging giant's operations amid a turbulent period marked by legal challenges faced by its founder

Messaging giant Telegram experienced a period of turbulence in 2024. Amidst legal challenges faced by its founder, Pavel Durov, the company saw a surge in revenue and expanded its digital asset portfolio.

Based in Dubai, Telegram reported revenue of $525 million in the first half of 2024, exhibiting a remarkable 190% growth compared to the same period in 2023. A significant portion of this revenue, approximately $225 million, was derived from a unique one-time arrangement involving Toncoin, a cryptocurrency that was initially developed by Telegram.

Due to regulatory challenges, the Toncoin project later transitioned into an open-source initiative. As part of the agreement, small businesses were required to utilize Toncoin exclusively for advertising purposes on Telegram.

In addition to the Toncoin agreement, Telegram's financial disclosures also revealed that the company had generated $353 million from the sale of digital assets during the first half of the year. A large part of these sales was attributed to Toncoin, with an estimated $348 million worth of the cryptocurrency being sold since its introduction.

These sales played a crucial role in helping Telegram achieve a post-tax profit of $335 million in the first half of 2024, presenting a stark contrast to the losses that were reported by the company in 2023.

The company's rapid rise in the crypto market, particularly through the sale of Toncoin, was pivotal in maintaining its financial strength. However, Telegram also faced increasing pressure from regulatory bodies, especially in light of accusations involving criminal content on the platform.

notably, Telegram owns a considerable quantity of TON. Throughout the year, the messaging service application has been closely linked to the performance of the cryptocurrency. Following founder Pavel Durov’s arrest, TON’s value plunged by 25%, declining to $5.24.

However, the asset rebounded from its lows, sparking a wider surge across cryptocurrency markets. By November 27, the cryptocurrency price stood at $6.40, marking a gain of 7.80% in the last 24 hours, according to Brave New Coin’s TON Price Index.

Telegram's Advertising Revenue Surges to $120 Million

As Telegram integrated advertising into its platform, experts raised concerns that the company could struggle to attract advertising revenue, especially with its connection to child sexual abuse material and terrorist content, both of which drew heightened scrutiny from governments worldwide.

In response, Telegram committed to strengthening its content moderation practices, stating that it will expand its moderation team and continue cooperating with authorities in compliance with French laws.

“The company stands behind its practices in content moderation and co-operation with judicial authorities in strict compliance with the applicable French laws,” said Telegram.

Despite these challenges, Telegram's advertising revenue surged to a record $120 million in the first half of 2024, with premium subscriptions contributing an additional $119 million, up from just $32 million in the same period the previous year.

Telegram remained committed to its dual monetization strategy, balancing ad sales with premium subscriptions, following in the footsteps of major social media platforms like Meta and X. According to Durov, who retains full ownership of the company, Telegram could even consider going public as early as 2026, with plans to further expand its monetization efforts.

Telegram's Long-Term Strategy

Although Telegram has profited from favorable market conditions by divesting some of its crypto assets, this is not part of its long-term strategy. Instead, Telegram focuses on scaling its advertising and subscription revenue streams. In fact, the surge in crypto holdings has acted as a financial buffer, helping Telegram weather the storm of Durov’s legal troubles and maintain growth amid volatile market conditions.

While Telegram’s bonds faced fluctuations—initially dipping to as low as 87 cents on the dollar in August—they have since rebounded to 95 cents on the dollar as of September 2024. The bond buyback, amounting to $124.5 million, was a strategic move to stabilize the company’s financial position.