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> But they lost $140m in 2014 and made only $10m in revenue you posted the same comment two times already. same response https://news.ycombinator.com/item?id

> But they lost $140m in 2014 and made only $10m in revenue you posted the same comment two times already. same response https://news.ycombinator.com/item?id=34566572 https://news.ycombinator.com/item?id=34566572

senttoschool 4y ago
So it was still a $26.5m net loss for 6 months? Or $53m net loss for 12 months?
- B8MGHCBekDuRi 4y ago
  For the year ending December 31, 2013, WhatsApp had $10.2 million in revenue and a net loss of $138.146 million. Net cash used in operating during this period was only $9.9 million, while share-based compensation amounted to $98.8 million They only spent $9.9 million over $10.2 million in revenues for operations. WhatsApp’s goal is still growth, rather than monetization. Mark Zuckerberg and WhatsApp CEO Jan Koum said when the acquisition was made in February that ads aren’t the right way to earn money on messaging They were investing on growth, an investment that lead to a $16 billion acquisition from Facebook. I would love to replicate their same "unsustainable business"
- erichocean 4y ago
  They took in more cash than they spent, the opposite of what you are implying. Are you really that upset about GAAP accounting and how non-cash, stock-based compensation can lead to paper "losses"?
  - senttoschool 4y ago
    No, I'm not upset. I was just operating with different information. My point remains. They created impressive technology. But 900m users and 50 engineers needed more context. It's not like they shipped a 900 million iPhone-like product with 50 engineers. They made $200k/engineer which is pretty bad compared to more successful companies. When they needed to make more money, they would have needed a lot more engineers.
- gen220 4y ago
  They never spent their Series A cash. What you're reading is a common misinterpretation of GAAP, which values equity on a cash basis, even though it has no material impact on the company balance sheet. If you look at the cash flow statement in their SEC documents, the cash story is more clear. They never spent investor money from their Series A-on. After Sequoia completed the Series B, Jan and Brian forwarded them a copy of the bank account statement before the Series B financing, showing the original invested funds untouched. They were acquired less than a year later. Whatsapp was a money-printer! It deserves that reputation.

senttoschool 4y ago

So it was still a $26.5m net loss for 6 months? Or $53m net loss for 12 months?

B8MGHCBekDuRi 4y ago
For the year ending December 31, 2013, WhatsApp had $10.2 million in revenue and a net loss of $138.146 million. Net cash used in operating during this period was only $9.9 million, while share-based compensation amounted to $98.8 million They only spent $9.9 million over $10.2 million in revenues for operations. WhatsApp’s goal is still growth, rather than monetization. Mark Zuckerberg and WhatsApp CEO Jan Koum said when the acquisition was made in February that ads aren’t the right way to earn money on messaging They were investing on growth, an investment that lead to a $16 billion acquisition from Facebook. I would love to replicate their same "unsustainable business"
erichocean 4y ago
They took in more cash than they spent, the opposite of what you are implying. Are you really that upset about GAAP accounting and how non-cash, stock-based compensation can lead to paper "losses"?
- senttoschool 4y ago
  No, I'm not upset. I was just operating with different information. My point remains. They created impressive technology. But 900m users and 50 engineers needed more context. It's not like they shipped a 900 million iPhone-like product with 50 engineers. They made $200k/engineer which is pretty bad compared to more successful companies. When they needed to make more money, they would have needed a lot more engineers.
gen220 4y ago
They never spent their Series A cash. What you're reading is a common misinterpretation of GAAP, which values equity on a cash basis, even though it has no material impact on the company balance sheet. If you look at the cash flow statement in their SEC documents, the cash story is more clear. They never spent investor money from their Series A-on. After Sequoia completed the Series B, Jan and Brian forwarded them a copy of the bank account statement before the Series B financing, showing the original invested funds untouched. They were acquired less than a year later. Whatsapp was a money-printer! It deserves that reputation.