Telegram finally turns profitable after 11 years

Encrypted messaging platform Telegram has reached profitability 11 years after its launch, according to its CEO, Pavel Durov. In a recent update on his Telegram channel, Durov credited the milestone to revenue generated through advertisements and its premium subscription service, introduced as part of the platform’s broader monetization efforts.

The premium subscription, priced at $4.99 per month, along with a revenue-sharing model for content creators and a business-tier subscription, contributed significantly to Telegram's financial success. The company also managed to pay off a substantial portion of its $2 billion debt this year.

Telegram’s revenue for 2024 surpassed $1 billion, with $500 million in cash reserves, excluding cryptocurrency holdings, Durov revealed. He emphasized that the platform's financial achievements demonstrate how social media platforms can maintain independence and respect user rights while achieving sustainability.

This marks a sharp turnaround from 2023, when Telegram reported a $108 million loss on $342 million in revenue, as per The Financial Times. Losses are not uncommon for tech startups in their early years, but Durov had floated the idea of a public listing earlier this year to address financial challenges.

Despite its financial growth, Telegram continues to face scrutiny and legal challenges. The platform, which reports 950 million users, has been accused of enabling the spread of misinformation and facilitating illegal activities due to its minimal content moderation policies.

In August, French authorities arrested Durov and charged him over alleged criminal activities conducted via Telegram. He criticized the charges, arguing that holding a CEO responsible for third-party misuse of a platform is misguided. Telegram has faced similar regulatory scrutiny in countries like Spain, Germany, and the UK, which have considered sanctions or outright bans.

Previously banned in Russia between 2018 and 2020 for refusing to grant government access to user data, Telegram has since regained popularity there and plays a crucial role in disseminating information related to the war in Ukraine.