Introduction
Discord, the popular communication platform for gamers, announced its plans to go public through an initial public offering (IPO). With over 140 million monthly active users, Discord has become a go-to platform for gamers to communicate with each other, join communities, and play games together. This move marks a significant milestone in the company's growth and has sparked much excitement within the gaming community. In this blog post, we will dive into what an IPO is, what it means for Discord, and what the future holds for the gaming community.
6 Hot IPOs to Watch Out for in 2023
What the Discord IPO Means for Investors and Gamers
The Discord IPO is expected to be a major event for both investors and gamers. Investors will have the opportunity to invest in a company that has seen tremendous growth over the past few years. Discord's revenue has grown from $45 million in 2019 to $130 million in 2020, and the company is expected to continue its growth trajectory in the coming years. For gamers, the IPO could mean new features and improvements to the platform. With the influx of capital from the IPO, Discord may be able to invest in new technologies and expand its offerings to better serve the gaming community.
Currently the company operates on a freemium model to rapidly increase its user base. The core platform is free to use, but users can purchase more advanced features to improve their experience. This has enabled group owners to generate thriving communities and even entice companies such as Adidas to use Discord as a communication platform. To make the freemium model successful, Discord has to offer enough features in the free version to create user habits and convince them to upgrade by purchasing subscriptions, game sales fees, and server boosting memberships.
The Future of the Gaming Community
The gaming industry has experienced significant growth in recent years, and it is expected to continue to grow in the future. In 2020, the global gaming market was valued at $159.3 billion, and it is projected to reach $200 billion by 2023. Discord has positioned itself as a communication platform for gamers, and it has become an essential tool for gaming communities. With the increasing popularity of online gaming, Discord's market potential is enormous.
Discord's market potential is not limited to the gaming industry. The app has expanded beyond gaming communities and has become a communication platform for various interest groups. Discord's servers provide a platform for communities to come together and interact with each other. It has proved to be an effective tool for socializing, learning, and collaboration. Discord has become an alternative to traditional social media platforms, and it has gained significant traction among non-gaming communities. The app's versatility makes it an attractive option for businesses and organizations to connect with their audience.
The company’s market potential is not limited to its communication services. The platform has the potential to generate revenue through various channels, and has already launched a subscription-based service called Nitro, which provides users with additional features such as custom emojis and animated avatars. The app can generate revenue through advertising, sponsorships, and partnerships. Discord's user base is highly engaged, and it presents an attractive opportunity for businesses to reach their target audience.
Financials and Valuation
Despite the number of registered users predicted to increase over the next year, direct earnings are anticipated to fall from 208 million USD to 207 million USD due to the many services Discord offers (VoIP, text, and video communication) for free.
In 2022, Discord earned an impressive $220 million in revenue from a variety of premium and membership subscriptions. This reflects the platform's meteoric rise in popularity, with more and more users opting to pay for extra features and services. This income allows Discord to invest in further development and refinement, keeping the platform at the cutting edge of online communication and community-building. It will be intriguing to observe how Discord continues to grow and innovate in the future, as it firmly establishes itself as a major player in the online sphere.
The company was most recently valued at an impressive $15 billion in 2021, a massive increase of more than double its valuation in 2020. Since its inception, Discord has received close to $1 billion in total investments, with a whopping $500 million from its Series H funding round in September 2021.
Conclusion
The Discord IPO represents a significant milestone for the gaming community. As the platform continues to grow and expand its offerings, it may become an even more essential tool for gamers to connect with each other and build communities. Additionally, the IPO could pave the way for new innovations in the gaming industry. With Discord's proven track record of success, other companies may follow suit and look to go public themselves. This could lead to increased competition and innovation in the industry, ultimately benefiting gamers around the world.
Sources:
https://www.usesignhouse.com/blog/discord-stats#discord-revenue
https://www.businessofapps.com/data/discord-statistics/
https://productmint.com/the-discord-business-model-how-does-discord-make-money/
