Facebook Reveals WhatsApp’s Financial Results; Heavy Net Losses in 2013, First Half of 2014

As a result of the official closing of Facebook’s acquisition of cross-platform messaging application WhatsApp, the first clear picture of WhatsApp’s financial results emerged in the form of a Form 8-K/A filed with the Securities and Exchange Commission by its new parent company Tuesday, and the picture wasn’t a pretty one when it came to net loss.

LossWordCollage650As a result of the official closing of Facebook’s acquisition of cross-platform messaging application WhatsApp, the first clear picture of WhatsApp’s financial results emerged in the form of a Form 8-K/A filed with the Securities and Exchange Commission by its new parent company Tuesday, and the picture wasn’t a pretty one when it came to net loss.

The Form 8-K/A filed by Facebook provided the following financial results for WhatsApp for the full years of 2013 and 2012:

  • Revenue: $10.21 million in 2013, up from $3.821 million in 2012.
  • Cost of revenue: $52.867 million in 2013, $18.858 million in 2012.
  • Research and development: $76.911 million in 2013, $34.487 million in 2012.
  • General and administrative: $18.87 million in 2013, $6.035 million in 2012.
  • Sales and marketing: $30,000 in 2013, $17,000 in 2012.
  • Total costs and expenses: $148.678 million in 2013, $59.397 million in 2012.
  • Loss from operations: $138.468 million in 2013, $55.576 million in 2012.
  • Other income or expenses: Expenses of $264,000 in 2013, income of $8,000 in 2012.
  • Loss before benefit from income taxes: $138.732 million in 2013, $55.568 million in 2012.
  • Benefit from income taxes: $586,000 in 2013, $899,000 in 2012.
  • Net loss: $138.146 million in 2013, $54.669 million in 2012.

WhatsApp’s results for the first six months of 2014 were also included in the Form 8-K/A:

  • Revenue: $15 million.
  • Cost of revenue: $44 million.
  • Research and development: $68 million.
  • General and administrative: $135 million.
  • Total costs and expenses: $247 million.
  • Loss from operations: $232 million.
  • Other expenses: $1 million.
  • Net loss: $233 million.

And WhatsApp described where its revenue comes from:

The company provides messaging services through the WhatsApp messenger app. The users pay a subscription fee for the messaging service that the company offers in certain countries.

The company derives revenue from two sources: term subscription revenue, which is comprised of subscription fees from users utilizing the WhatsApp messaging service through their mobile devices over a subscription period of one year, three years or five years; and perpetual subscription revenue from users utilizing the WhatsApp messaging service on mobile devices that have perpetual subscription periods.

Readers: What did you think of your first peek at financial results from WhatsApp?

Loss word collage image courtesy of Shutterstock.