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.

Also popular on WSJ.com:

Nintendo to launch two new Switch models.

Men ditch suits, and retailers struggle to adapt.

Filed in: Top News Tags: 

You might like:

How the $700 million Equifax settlement could leave you high and dry How the $700 million Equifax settlement could leave you high and dry
Economic Report: Existing-home sales dip 1.7%, housing market struggles despite cheaper mortgages Economic Report: Existing-home sales dip 1.7%, housing market struggles despite cheaper mortgages
Market Snapshot: Stocks mostly higher as earnings season ramps up; Coke shares prop up the Dow Market Snapshot: Stocks mostly higher as earnings season ramps up; Coke shares prop up the Dow
Futures Movers: Oil falls as Middle East news flow calms ahead of data expected to show a fall in U.S. crude supplies Futures Movers: Oil falls as Middle East news flow calms ahead of data expected to show a fall in U.S. crude supplies
Key Words: Two Louisiana officers fired over post suggesting Ocasio-Cortez should be shot Key Words: Two Louisiana officers fired over post suggesting Ocasio-Cortez should be shot
Coca-Cola earnings get a jolt from ready-to-drink Costa Coffee Coca-Cola earnings get a jolt from ready-to-drink Costa Coffee
Project Syndicate: Politics is making Fed policy incoherent Project Syndicate: Politics is making Fed policy incoherent
After the Equifax breach settlement, brace yourself for what could replace Social Security numbers After the Equifax breach settlement, brace yourself for what could replace Social Security numbers

Leave a Reply

Submit Comment
© 2019 Stock Investors News. All rights reserved. XHTML / CSS Valid.