Telegram reported $342.5 million in revenue for 2023 with operating losses of $108 million. The data shows the company's high reliance on cryptocurrency transactions.
Financial Results
According to an audit by PwC in Dubai, Telegram recorded revenues of $342.5 million in 2023. Despite this, the company also reported operating losses of $108 million. The report also showed a profit of $500,000 from the revaluation of digital assets in its profit and loss account. In total, $86 million in profit was recorded under other comprehensive income.
Impact of Cryptocurrencies
Telegram's financial reports show a significant dependence on cryptocurrency transactions, which make up a substantial portion of its revenue. New revenue streams such as the “integrated wallet” and “sale of collectibles” jointly provided over 40% of the company's revenue. The integrated wallet, introduced last year, allows users to store, send, receive, and trade crypto assets directly within the app. By the end of 2023, the value of Telegram's crypto assets was nearly $400 million, significantly higher than the company's cash reserves.
Pavel Durov's Investments and Other Financial Activities
Financial reports also revealed interesting related-party transactions. Pavel Durov purchased $64 million in Telegram's convertible bonds last year, demonstrating a high level of personal investment in the company. He also bought $300,000 worth of Telegram Premium subscriptions for giveaways, using Toncoins for the purchase. Although the company is entirely owned by Durov, it has also raised over $2.3 billion through convertible bonds from major investors, including sovereign wealth funds, hedge funds, and tech-focused investors.
It remains unclear whether Telegram's strategy to support revenues through cryptocurrency transactions and personal investments will be sufficient to counterbalance the significant losses.
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