Telegram reported a $540M profit in 2024, marking its first profitable year as revenues soared to $1.4B. Growth was driven by premium subscriptions, advertising, and crypto-powered mini apps. Despite success, founder Pavel Durov faces legal charges in France over content moderation failures. A potential IPO is on the horizon, with a $1.5B bond sale underway. Telegram is also expanding into AI through a new partnership with Elon Musk’s xAI.

Telegram has stunned the tech world with an impressive financial turnaround in 2024—reporting a $540 million annual profit. Yet, this financial success arrives under the shadow of serious legal challenges facing its enigmatic founder, Pavel Durov.

Telegram Achieves Profitability for the First Time

In 2024, Telegram’s revenue soared to $1.4 billion, marking a fourfold increase from $343 million in 2023. Even more remarkably, it turned a $173 million loss into a $540 million profit—its first since launching over a decade ago.

This milestone was disclosed in investor documents seen by the Financial Times, ahead of Telegram’s latest bond sale worth approximately $1.5 billion. The proceeds will go towards buying back outstanding debt.

Despite its booming business, Telegram is embroiled in a legal crisis. Founder Pavel Durov, who holds French and UAE citizenship, faces criminal charges in France. Authorities claim the platform failed to address harmful content, including child abuse material and terrorist activity.

Durov was detained in Paris in August 2024 and now faces the possibility of a prison sentence. He has responded publicly, alleging that his detention was politically motivated. According to Durov, French intelligence requested Telegram restrict conservative voices in Romania ahead of elections something he refused.

The French intelligence service has denied these allegations, insisting their actions were based solely on content moderation failures.

Telegram’s Scale: A Billion Users, 60 Core Staff

Telegram is now one of the largest messaging platforms in the world, with over 1 billion monthly active users. Surprisingly, it achieves this scale with a core team of just around 60 people, relying heavily on external contractors for moderation.

This lean structure makes its profitability even more notable and potentially more sustainable in the long run.

Business Model Breakdown: Premium, Ads, and Partnerships

Telegram’s revenue is split across several major streams:

  • Premium Subscriptions: Contributed $292 million in 2024. Telegram Premium offers extra features such as faster downloads, custom emojis, and larger file uploads.
  • Advertising: Generated $250 million from in-app ads in public channels.
  • Partnerships & Ecosystem: This category, bringing in the largest share of revenue, around $850 million, includes developer mini-apps, integrations, and blockchain-based transactions.

The growth in the “partnerships and ecosystem” category is closely tied to Telegram’s Ton blockchain and its native cryptocurrency, Toncoin.

Toncoin: Telegram’s Cryptocurrency Integration Paying Off

Telegram’s embrace of crypto infrastructure is starting to pay real dividends.

The Ton blockchain, originally created by Telegram and now run by the open-source community, underpins a wave of in-app mini apps in areas like e-commerce and gaming. These apps often use Toncoin for in-app purchases or services.

Telegram also profited from selling parts of its own Toncoin holdings and striking deals with third-party developers.

Big Bet on AI: Telegram Partners With Elon Musk’s xAI

Telegram isn’t stopping at crypto. In a surprise move, the company announced a partnership with Elon Musk’s AI venture, xAI.

Telegram has already integrated xAI’s Grok chatbot into its platform. According to the company, both parties plan to share revenue generated from the bot and expand Grok’s reach within the app.

This marks Grok’s first major entry outside Musk’s X (formerly Twitter) platform and aligns with both Musk’s and Durov’s shared stance on free speech and decentralization.

Bond Sale With IPO Potential: Telegram’s Next Big Move?

Telegram has issued $2.4 billion in bonds over the past four years. From September to December 2024, the company repurchased $375 million of that debt. Now, with another $1.5 billion bond round underway, investors are being offered a sweetener: the option to buy shares at a 20% discount in any future IPO.

Company insiders say a public offering is on the table if markets improve. However, Durov’s legal situation could delay or derail IPO plans, depending on how the French investigation plays out.

Despite this uncertainty, Telegram has set bold goals: $2 billion in revenue and $720 million in profit for 2025. As of February 2025, it held $530 million in cash, not counting its crypto assets.

Telegram's growth isn’t without complications. Here are some looming concerns:

  • Legal Threats: Durov’s case could impact investor confidence and regulatory approval for IPOs.
  • Content Moderation: Critics argue Telegram’s hands-off approach enables abuse and extremism. Outsourcing moderation to contractors may not satisfy regulators.
  • Crypto Volatility: Heavy reliance on Toncoin could backfire if the crypto market crashes or regulators impose restrictions.

Still, if Telegram navigates these storms, it could emerge as a powerful hybrid of messaging, crypto finance, and AI infrastructure—a unique position in the tech ecosystem.

Final Thoughts: A Crossroads for Telegram

Telegram’s 2024 was a paradox: soaring profits and booming growth, alongside a founder in legal jeopardy.

The company’s ability to thrive amid controversy speaks to the strength of its business model, but also highlights its risk tolerance. Whether Telegram becomes a mainstream tech giant or remains a disruptive outsider will depend on its next few moves.

Investors, users, and governments alike will be watching closely.