GitHub Is Building a Coder’s Paradise. It’s Not Coming Cheap - Bloomberg

"Though the name GitHub is practically unknown outside technology circles, coders around the world have embraced the software. The startup operates a sort of Google Docs for programmers, giving them a place to store, share and collaborate on their work. But GitHub Inc. is losing money through profligate spending and has stood by as new entrants emerged in a software category it essentially gave birth to, according to people familiar with the business and financial paperwork reviewed by Bloomberg.

The rise of GitHub has captivated venture capitalists. Sequoia Capital led a $250 million investment in mid-2015. But GitHub management may have been a little too eager to spend the new money. The company paid to send employees jetting across the globe to Amsterdam, London, New York and elsewhere. More costly, it doubled headcount to 600 over the course of about 18 months.

GitHub lost $27 million in the fiscal year that ended in January 2016, according to an income statement seen by Bloomberg. It generated $95 million in revenue during that period, the internal financial document says."