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WeWork doubled sales and loss in 2018 – Axios

Why it matters: The Cooperating Space Operator continues to seek an IPO, but has a lot of money if it wants to wait longer.

Turnover: Turnover for 2018 was $ 1.82, representing an increase of 105% over 2017. Of this, 88% is membership growth – compared to 93% in 2017.

  • "We have one Global member network that is on this global physical platform that we continue to monetize, "says WeWork vice president Michael Gross to Axios.
  • Gross adds that the average annual growth rate (CAGR) of WeWork has exceeded 1
    00% over the last eight years.

Losses: Net loss: $ 1.98 billion for 2018, more than revenue and an increase of 103% over 2017.

  • It included $ 372 million in sales and marketing (+ 162% from 2017) and $ 237 million in interest on 2018 bond issues.
  • WeWork Artie Minson, President and Chief Financial Officer, expects both revenue and net loss to continue to increase essentially on the cost of construction and long-term leases. "I was at [Time Warner Cable] before, and it took decades for cable companies to make a profit, but that does not mean they did not create much value."

Old Measure: WeWork favors investors New metric titled "Community-Adjusted EBITDA," which more than doubled in 2018 to $ 467.1 million.

The total membership increased by 116% to 401,000 in 2018. It is now represented in 425 institutions in 100 cities in 27 countries.

  • 32% of members come from corporate customers, while total occupancy has increased to 90%.
  • WeWork announces $ 2.2 billion in "promised backlog" on new membership contracts.
  • It is also said that one out of every eight entrepreneurs is a company. In US cities, WeWork members are.
  • The company is now represented at 425 locations in 100 cities in 27 countries.
  • Asked about the impact of slowing economic growth, Gross said, "We've seen some levels of economic decline in regions like Latin America and China, but we've just seen our growth accelerate."

WeWork decreed $ 2.2 billion in cash at year-end, the same amount it had at the time of the Public Bonds offering last April.

This includes unallocated SoftBank capital of $ 400 $ 4 billion (including $ 1.5 billion in January) from SoftBank's convertible bond warrants.

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