WeWork’s Major Financial Losses Go Public Ahead Of Its IPO
WeWork has officially revealed its losses of $900 million over the past six months as it gears up for its initial public offering as soon as next month.To put it in perspective, Uber reported losses of $5 million in the second quarter due to stock based compensation from its IPO.The We Company privately filed for an IPO in April, but had yet to reveal any financial specifics until now. Click To Tweet
The company also reported about $17.9 billion in lease obligations. In the filing, WeWork also revealed it received $1.54 million in revenues for the first six months of 2019. Additionally, it confirmed that JPMorgan Chase and Goldman Sachs will be the main underwriters in the IPO.
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To differentiate its losses from the likes of Uber and Lyft, WeWork said its losses should be seen as “investments.”
“We have grown significantly since our inception,” the company said in the filing. “Our membership base has grown by over 100% every year since 2014. It took us more than seven years to achieve $1 billion of run-rate revenue, but only one additional year to reach $2 billion of run-rate revenue and just six months to reach $3 billion of run-rate revenue.”
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