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WeWork took another step forward in its path to going public today, and the company claims it will be able to withstand and grow during a major recession as confidence in the economy is starting to dip.

According to the S-1 filing with the U.S. Securities and Exchange Commission today, WeWork brought in $1.8 billion in revenue in 2018, a 106 percent spike over 2017. WeWork is on pace to bring in $3.3 billion in revenue in 2019, which would be a 112 percent rise.

Losses more than doubled each of the last two years to high of $1.9 billion in 2018. But so far this year, losses are starting to slow. For the first six months of 2019, WeWork posted losses of $904 million, an increase of 25 percent over the first half of 2018.

Worldwide, WeWork has 527,000 members across the globe, up 97 percent for the 268,000 members the company had as of June 1 of last year.

WeWork didn’t say how many square feet it has across the globe. However, the company did note that it has identified up to 40 million square feet worth of potential future locations, which would accommodate an additional 724,000 desks.

Large companies, including behemoths such as Amazon, Microsoft, DocuSign, Salesforce and many more are becoming a larger part of WeWork’s business. The company offers services for enterprises to set up large offices with flexible terms in WeWork locations. Today, enterprises comprise roughly 40 percent of WeWork’s member base.

WeWork is the latest highly valued company growing at hyper speed while losing plenty of money to file for an IPO this year. The rash of companies going public has come within the context of a nearly decade-long run without a major global recession.

However, the tides may soon turn. The stock market has plunged more than …read more

Source:: GeekWire


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