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For those wondering where the rest of the $$$ went, the main other costs were about $5.8 billion to R&D, and $3.3 billion to “General and Administrative.” Altho
by yashap 6y ago
For those wondering where the rest of the $$$ went, the main other costs were about $5.8 billion to R&D, and $3.3 billion to “General and Administrative.” Although, R&D costs were very inflated in Q2, due to stock payouts and whatnot related to the IPO, in the other quarters R&D costs were well below Sales and Marketing. So normally “cost of revenue” and “sales and marketing” would be the top two categories, then R&D.
Realistically, they need to cut from pretty much everywhere, especially with revenue tanking during COVID. Even without that one-time IPO related payout of about $3.6 billion last year, they still would’ve burnt ~$5 billion. Their losses this year, with massively decreased revenue due to COVID, could probably be $10+ billion (if they didn’t lay people off). That’d be for non-IPO costs staying static while revenue drops ~35%. And I believe their nest egg is only ~$10 billion, so that’s very roughly around 1 year of runway, much too short. They need to cut a LOT of costs.