Telegram has reported positive cash flow in the first quarter of the year, setting the stage for a potential profitable year ahead. Pavel Durov, the enigmatic founder of Telegram, announced that the popular messaging platform ended the last quarter on a high note, with expectations soaring for turning a profit by the end of 2024.
Durov’s announcement comes hot on the heels of Telegram’s steady user growth, with the platform now boasting a staggering 900 million monthly users, half of whom engage with the messenger daily. This surge in user base places Telegram among the top 6 most downloaded apps globally, according to data from DataAI.
The achievement of positive cash flow was bolstered by Telegram’s recent successful bond sale, which saw the company rake in a substantial $330 million. The overwhelming demand for these bonds, described as “oversubscribed,” underscores investors’ confidence in Telegram’s future prospects. Durov revealed to the Financial Times that Telegram’s valuation now stands at an impressive $30 billion, setting the stage for a highly anticipated IPO by March 2026.
Despite its decade-long journey marked by unprofitability, Telegram’s meteoric rise has been largely fueled by its opaque ownership structure and a relentless focus on user experience. The company’s unconventional approach to fundraising, shrouded in secrecy, has led to speculation about its financiers and the sustainability of its business model. While previous attempts at monetization, such as advertising, fell short of covering costs, the introduction of Telegram Premium garnered over 5 million subscribers in January alone. However, Durov had previously noted that achieving profitability would require a significant increase in Premium subscribers, hinting at the challenges ahead.
In a strategic move to diversify revenue streams, Telegram rolled out monetization options for channel owners on March 31, signaling its commitment to sustainable growth. However, the platform’s expansion into monetization faces regulatory hurdles in certain regions, notably Ukraine, where concerns over legislative oversight of social networks and messengers, including Telegram, continue to loom large among government officials.
As Telegram charts a course towards profitability and potential billionaire status, its ability to navigate regulatory challenges and sustain user engagement will be closely watched by industry observers. With its disruptive approach to messaging and a rapidly expanding user base, Telegram’s ascent to financial success represents a compelling narrative in the tech landscape.