Facebook just disclosed the financial performance of WhatsApp, the messaging app it acquired in a deal that was ultimately valued at $US22 billion.
The numbers are unimpressive. Revenue was $US10.2 million 2013. It had a net loss of $US138 million in 2013. The bulk of that loss, or $US98.8 million, came from stock based expenses. It burned $US9.9 million in cash for operating activities in 2013.
These numbers are irrelevant, so there’s no reason to freak out about it. Facebook didn’t buy the company for its revenue. WhatsApp had only started to monetise its user base.
Facebook bought WhatsApp for its 600 million active users. Facebook has a not-so-crazy belief that an application on its way to a billion users can develop into a business worth more than $US22 billion in the long run.
Here are the numbers, anyway.