Discord reported massive user growth and engagement. As of September 2024, 200 million people use the platform every month and spend 1.5 billion hours every month playing games and communicating on Discord. The company is uniquely positioned to be the central place where players can convene as data suggests that over 85% of players on Discord have a friend who plays the same games. This indicates that the large network of players could continue to grow and present an opportunity for Discord to acquire more customers.

Discord has expanded its monetization strategies and plans to launch its second ad format in an effort to steadily grow its ads business ahead of a potential initial public offering. The company reports that it currently generates a vast majority of its revenue from its Nitro subscription where users pay either $2.99 or $9.99 and also makes money through a 10% commission from developers who sell games on Discord. The company was expected to generate around $600 million in annual revenue in 2024 but will look to turn a profit through the expansion of ad revenue mainly with the launch of Video Quests, its second ad format.

Discord stated that it is focused on improving user experience across various gaming platforms and announced a rebrand for its 9th anniversary. While the platform was initially for gamers it now caters to a diverse range of communities and offers social interaction, collaboration, and entertainment. CEO Jason Citron stated that one of the main aspects of the rebrand is a sleek, modernized design that he hopes will make the app more intuitive and visually appealing while also helping users navigate and engage with their communities effortlessly as well as incorporating new tools and features. This refreshed brand and new features underscore Dicscord's commitment to innovation and user satisfaction.

Discord laid off 17% of its staff or 170 people in January 2024, signaling operational challenges. The company is yet to become profitable and is struggling to revive user growth after a surge during the pandemic. The company had grown its headcount too fast over the last few years and as a result took on more projects and became less operationally efficient. If Discord continues to face operational and financial challenges, it could affect the long-term viability of the company.

Discord was sued over its Nitro subscriptions in December 2024, as consumers claimed that Nitro is too difficult to cancel which violates California's auto-renewal laws. This legal battle is expected to go on "for a while from now", which could pose financial constraints for Discord and could also negatively affect consumer perception of the company.

Discord faces significant competition from other communication platforms including Slack, Microsoft Teams, Zoom, Telegram, and WhatsApp that all offer similar communication capabilities. A newer competitor, Teamspeak, has even taken aim at Discord in targeted social media ads telling people to delete their Discord accounts while also announcing new features. Discord will continually need to differentiate itself from other platforms to remain competitive and maintain its market share.