WhatsApp’s First Half Of 2014 Revenue Was $15M, Net Loss Of $232.5M Was Mostly Issuing Stock

Facebook disclosed financials of its $22 billion acquisition of WhatsApp for the first time today, and it looks like the 600 million user messaging app’s revenue is still small. In the six months ending June 30, 2014, WhatsApp brought in $15.921 million in revenue, but had a net loss of $232.5 million. However, $206.5 million of that loss was for share-based compensation expenses and issuance of common stock below fair value. Its net cash used in operating expenses during the first half of 2014 was $13.5 million, which sounds much more reasonable.

Essentially, due to WhatsApp’s quickly rising valuation, it used share-based compensation to attract top talent. Eventually, the $22 billion acquisition by Facebook would largely make the “expenses” of issuing that stock moot. This wasn’t cash that WhatsApp was burning, but paper money it was doling out.

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. This share-based compensation ballooned from $38.2 million in 2012 when it had $54.669 million in net losses, $3.5 million net cash used in operating activities, and just $3.821 million in revenue.

Overall, Facebook broke down the money it spent on WhatsApp as $2.026 billion for the user base, $448 million for the brand, $288 million for technology, and $21 million for other. That left it to chalk up the $15.314 billion difference as “good will” aka the value “from future growth, from potential monetization opportunities, from strategic advantages provided in the mobile ecosystem from expansion of our mobile messaging offerings.”

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, yet the app wouldn’t be aggressively pushing the $1 a year subscription fees it sometimes charges. Instead, together the CEOs hope to make WhatsApp the top international messaging app first, box out competitors, and then earn money once it’s solidified its position.

Build Your Own Awesome Personal 3D Avatar with Avatara

Do you use social networks and want to build your own awesome 3D avatar? Maybe you want to send someone a cute cuddly image of yourself (kind of)? Or maybe you have your own ideas of what you would do with an Avatar… Well look no further than Avatara which I discovered from the MakeUseOf directory . You can create 3d avatars out of pre-set up templates or create your own from scratch. To start, visit Avatara’s homepage . You will see this screen: Click Get Started to umm, get started! That will take you to this screen: You see that you can build your own Avatar using an uploaded head shot like the Obama one above (just an example, guys). Or roll with one of their awesome avatars. I chose to start with a blank avatar by clicking Start with a blank avatar at the bottom of the screen. That takes you to here: I clicked on the filter at the top and told it to filter out everything but male characters and then I saw this: I rolled with Buck and continued. You need to click Select...

Fun Tools to Translate Your Name into Japanese Calligraphy

Japanese calligraphy is an artistic writing style of the Japanese language. Its Chinese origins can be traced back to the twenty-eighth century BCE. Calligraphy found its way into Japanese culture in 600 CE and is known as the karayo tradition. For Westerners, calligraphy is forever fascinating. However, it takes years to learn how to properly draw the signs. Two basic principles must be known to understand Japanese writing: there are different writing styles and different alphabets. Kaisho for example, is a writing style most commonly used in print media. Tensho on the other hand is used in signatures. Other writing styles are Reisho, Gyosho and Sousho. The alphabets include Kanji, Hiragana, and Katakana. Katakana is used for writing foreign words. It can also serve to highlight words, in analogy to capital letters as we know them from the Roman / Latin alphabet (Romaji in Japanese). Each Kanji character has a meaning of its own, while Hiragana or Katakana characters merely repres...

Boom, the startup that wants to build supersonic planes, just signed a massive deal with Virgin

Have you heard about Boom? Boom is a relatively new startup that’s aiming to build something pretty crazy. They’re not building an app… or a social network… or even some new gadget for the Kickstarter crowd. Boom wants to build planes. Really, really, really fast planes. Specifically, they’re trying to design and build a supersonic passenger plane that goes 2.2x the speed of sound. If all goes to plan, they’ll be able to shuttle people from New York to London in 3.5 hours, and SF to Tokyo in 4.5. Sound crazy? I wouldn’t disagree. It’s worth noting that the company is in the very early days for something as intensive, massive, and hugely expensive as designing and producing a passenger aircraft. They’re still working on their first prototype, and hope to fly it by late next year. But it’s also worth noting that the team behind the plane has some serious talent in its blood: the company’s 11 employees have collectively contributed to over 30 aircrafts — having worked on thin...

Kiran Upadhyay

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