Discord pulled in $130 million in revenue last year, according to a report from WSJ.
What Is Discord? It’s a popular chat platform among gamers and niche communities. We have one for ROIC members.
How It Works: Discord generates revenue by selling subscriptions to “super users that give them access to exclusive features, like private chats.” The platform has played around with other streams, such as a game store, which failed. But it seems Discord has found a happy medium with its current structure, “taking advantage of its scale but also catering to its superfans.
Why It Matters: We no longer live in a world of generalized content, and platforms that allow users to segment down to their very specific interests are all the more valuable. With an impressive revenue and a high trajectory of growth, Discord could be on its way to superstardom among the other high-value, high-performance social media companies. But to be fair, reaching that level is still a mountain to climb.
Numbers To Consider:
- Revenue Last Year: $130 Million
- Monthly Active Users: 140 Million
- Valuation: $7 Billion
Looking Ahead: It’s all about avoiding complacency. If Discord, which already has an impressive valuation, can keep trending in the right direction, “it wouldn’t be surprising to see it try to go public, either with a traditional IPO or a SPAC.”