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 its cryptocurrency, Toncoin, to pay down substantial debt, the New York Times reported.

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 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. 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 features that would let users mine and trade cryptocurrencies 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.

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."