Re:Telegram is booming but needs advertisers and $700M soon
by notahacker on Monday March 15, 2021 @11:53AM
(#26467473)
That envelope maths might explain why they're pinning their hopes on VC FOMO cash injections to explore more speculative revenue generation models.
1% conversion to paid at $120/year sounds high for a consumer-focused app particularly popular in developing countries whose competitors are free and whose competitive advantage is supposed to be that the app doesn't know who you are. And that's apparently less than they need to pay the bills, never mind justify their valuation.
They have 550M MAU, using a freemium model and assuming a 1% payment conversion, that's 5.5M monthly paying users. With a price ranging $1 to $10, that can be $66M ~ $660M ARR, at least they can try.