Discord Explores Gamer Incentives with CEO Deliberating Potential IPO

Discord, the popular instant messaging service among gamers, is attempting to turn a profit this year by releasing a product that gives incentives for playing online.

Discord users can test out new games with friends and win prizes by using the product dubbed Quests, according to Chief Executive Officer Jason Citron in an interview. Some of the biggest names in the video game industry will pay Discord to provide incentives related to their titles.

“We hope to have quests available in every game on Discord,” Citron stated.

Discord, which started out as a text and voice chat program for gamers to discuss their tactics, gained enormous popularity during the outbreak. According to Citron, there are currently more than 200 million active users each month. Reportedly, revenue has increased fourfold since 2020 to well than $600 million annually, according to individuals with relevant knowledge.

“We would most likely go public at some point,” Citron stated.

The business is growing its online store, where customers may add premium banners and effects to personalize their Discord profiles.

New items in the past have not been as successful. In 2019, Discord closed its store for games. There hasn’t been much success with a program that lets users who host servers, or chat rooms, on the website sell their own subscriptions.

According to Citron, the increase is a reflection of people’s preference for private chat rooms over open postings. Despite the enormous popularity of social media apps, he noted that group conversations and private, invite-only areas are becoming increasingly popular.

Discord’s primary source of revenue is the $3 to $10 monthly subscriptions company charges for its Nitro service, which lets users stream high-definition video, share larger files, and add personalized emojis to their conversations.

“While some people find it enjoyable, it hasn’t gained the traction we had hoped for,” Citron stated.

Discord has collected more than $1 billion in funding and still has about $700 million in cash on hand after turning down Microsoft’s $12 billion offer in 2021.

After making layoffs the previous year as well, the company let go of 17% of its workforce, or roughly 170 individuals, in January. At the time, Citron wrote a note to the workers complaining that the company had grown too quickly. He is now bringing the company back to its foundation.

He declared, “The world’s largest and fastest-growing form of entertainment is gaming.” “When we think back on our business, the things that are closest to gaming are the ones that have worked the best for us.”