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.

How To Hide Text In Microsoft Word 2007, Reveal It & Protect It

Sometimes what we hide is more important than what we reveal. Especially, documents with sensitive information, some things are supposed to be ‘for some eyes only’. Such scenarios are quite common, even for the more un-secretive among us. You want to show someone a letter composed in MS Word, but want to keep some of the content private; or it’s an official letter with some part of it having critical data. As important as these two are, the most common use could involve a normal printing job. Many a time we have to print different versions of a document, one copy for one set of eyes and others for other sets. Rather than creating multiple copies and therefore multiple printing jobs, what if we could just do it from the same document? That too, without the hassle of repeated cut and paste. We can, with a simple feature in MS Word – it’s just called Hidden and let me show you how to use it to hide text in Microsoft Word 2007. It’s a simple single click process. Open the document

Clip & Convert Your Video Faster With Quicktime X & The New Handbrake 64-bit [Mac]

Recently a friend of mine asked for my help to find a video of a good presentation to be shown to one of his classes. He also requested for it to be iPod friendly as he would also distribute the video to his students. Three things came to my mind: Steve Jobs, Quicktime and Handbrake . Mr. Jobs is well known for his great presentations which are often used as references. I have several Apple Keynotes videos. For my friend, I decided to choose the one that introduced MacBook Air – the one that never fails to deliver the wow effect to the non-techie audience. It’s a part of January 2008 Macworld Keynote. First step: The Cutting To get only a specific part of the Keynote, I clipped the 1+ hour video into about 20 minutes using Quicktime X (which comes with Snow Leopard). I opened the movie using Quicktime X and chose Trim from the Edit menu ( Command + T ). Then I chose the start and end of my clip by moving both edges of the trimming bar to the desired position. To increase th

Ex-Skypers Launch Virtual Whiteboard Deekit

Although seriously long in the tooth and being disrupted by a plethora of startups, for many years Skype has existed as an almost ubiquitous app in any remote team’s toolkit. So it seems apt that a new startup founded by a team of ex-Skype employees is set to tackle another aspect of online collaboration. Deekit, which exits private beta today, is a virtual and collaborative whiteboard to help remote teams work smarter. The Tallinn, Estonia-based startup is headed up by founder and CEO, Kaili Kleemeier, who was previously a Head of Operations at Skype. She and three colleagues quit the Internet calling giant in 2012 and spent a year researching ideas in the remote team space. They ended up focusing on creating a new virtual whiteboard, born out of Kleemeier’s experience collaborating with technical teams remotely, specifically helping Skype deal with incident management. “Working with remote teams has been a challenge in many ways – cultural differences, language differences, a

Kiran Upadhyay

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