New documents reveal WeWork’s large cash costs last year as it continues its rapid expansion across the world.
Now valued at $47 billion, the company reported a net loss of $1.9 billion in 2018 in addition to doubling its revenue from 2017 at $1.8 billion.
These new documents shed light one some of WeWork’s other costs, such as its $2.5 billion in net cash used towards investing activities.
Additionally, the income statement reveals that the company’s expansion expenses accelerated 335% year-on-year to $477 million, while its sales and marketing costs were up to $379 million — a 164% increase from 2017.
While it seemed that WeWork was starting to balance out its expenses, many of its financial metrics have fallen. For example, its bond prospectus from last year fell to negative 43.4% in the last quarter of 2018.
Still, WeWork’s “community-adjusted ebitda” margin stood at 27.5% for the year, as opposed to 2017’s 26.9%.
WeWork typically calculates its figures in a non-traditional way by taking its membership and service revenue before subtracting “adjusted rent, tenancy costs, and adjusted building and community operating expenses.”