The Wall Street Journal: Rapid expansion pushes WeWork’s annual loss to nearly $2 billion

WeWork Cos. on Monday said its loss last year doubled to nearly $2 billion, as the nine-year-old company spent heavily in an effort to rapidly expand its network of shared offices around the world.

The New York-based company’s revenue more than doubled to $1.82 billion, mostly from leasing office space. But heavy expansion costs led to a loss of $1.93 billion.

WeWork executives said the losses are reflective of investments required to build out new offices, and that once locations are open and well-leased, they make far more money than the cost to operate. The company has plowed into its business billions of dollars in capital raised by SoftBank Group Corp. 9984, -5.01%   and its tech-focused Vision Fund.

The company said as of December it had more than 400,000 members who rented desks in 100 cities, and has increasingly signed up larger corporate clients, who make up about one-third of membership.

An expanded version of this report appears on WSJ.com.

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