NEW YORK (Reuters) – The Us Company, owner of WeWork, said on Wednesday a net loss in the third quarter, more than doubling to $1.25 billion, as the non-shared, office, operator, added a record number of offices around the world to network, but I was not in a position to take control of the rising costs.
FILE PHOTO: A WeWork’s logo is seen outside its offices in San Francisco, California, USA, September 30, 2019. REUTERS/Kate Munsch/File Photo
WeWork to open 97 new locations in the quarter that ended in Sep. 30, the biggest quarterly increase ever, which is the total number of branches to 625 from 528 at the end of June, with a presentation of the profit that was to be delivered to, the holders of the securities showed.
The company has also expanded the number of cities and towns in which they operate, and by the age of 16, is to increase the global footprint to a total of 127, and the number of countries in which the sites of four up to and including 33, and the presentation, which Reuters has reviewed, it turned out to be.
The number of desks it provides to customers, rose to a record of 115,000 in the quarter to reach 719,000, including the share of India in writing. A year earlier, which had 354,000 and a work desk.
The company had $2 billion in cash at the end of the third quarter, with $ 600 million of that in the three Asian subsidiaries.
WeWork also had $3.4 billion in commitments from SoftBank Group Corp (9984.(T), which is obtained control of the company in October, and an additional $1.5 billion in the existing warrants held by SoftBank that are to be exercised in the last month or so, the presentation showed.
The gross profit from the sale of the workplace, membership, and service revenue grew in the third quarter to $808 million, up from $454 million in the year-ago quarter.
However, the losses widened from $497 million a year earlier, as costs grew faster than WeWork’s rapid expansion, new management is focused on the sidewalk in the aftermath of a disastrous attempt to go public. A pipeline lease obligations ” means, for the rapid growth is likely to continue into the fourth quarter, and by the year 2020.
The development of new sites will jump to $288 million from $69 million a year earlier; general and administrative expenses increased to $157 million from $81 million, while sales and marketing were $194 million, compared to $108 million.
A presentation of the debt securities of that WeWork was released last week, showed over a 90-day plan, in which it is revealed, it will shock the seven “non-core” units, with the priority of “profitable growth and to “right-size” operations.
Oct. 11 in a presentation, said the administrative jobs would be cut, along with jobs at WeWork ‘ s venture-capital arm, in the so-called growth-associated functions, in a possible reference to the design and construction of the units. The size of the job, was not mentioned.
WeWork, the crash, and has confounded experts in to the industry is that the price of the company is to create a flexible work space with a product for large companies, the desire, the capital structure of the baffles.
“WeWork was the highest payer in the area, and it was also the cheapest provider in the space,” said Ryan Simonetti, chief executive officer and co-founder of a call to a function, and a flex-space,-operator is backed by Brookfield Asset Management, among others.
“We’ve lost deals to the customers in the last 12 to 18 months, they have been paying less than the WeWork had to pay for the property itself,” It told reporters on Tuesday at a press conference to discuss the industry. “It doesn’t make sense.”
When WeWork in the process of rescheduling, the company will be less and less sites, as it gets rid of the non-performance of the sites, It said.
WeWork is on the shelf, and plans to go public in September. 30 days after the investors grew wary of its losses, the business model, corporate governance, and that it had forced out the former CEO and co-founder, Adam Neumann for the dismissal of a week ago.
The company, which has a total value of $47 billion, as it registered to go public in August, it saw its valuation drop as all-cash, market-leading SoftBank to bail out of the WeWork in the amount of $6.5 billion in October this year.
Reporting by Herbert Lash; Editing by Sandra Maler and Jane Wardell