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How WeWork spends its money

By Quartz

WeWork—or The We Company, if we must—published its hotly anticipated IPO filing today, ahead of a planned listing next month that will raise $3.5 billion or moreRead full story

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  • Interesting that 40% of their revenue comes from enterprise customers. In addition to similar details from Slack and Zoom S-1s, I see this as another piece of evidence that startup culture has officially gone mainstream.

  • WeWork is a real estate company that wants to trade like a tech company. No path to profitability. Funky multi-class shareholder structure. Over half of members are international, so there is at least geographic diversity. But otherwise heavy concentration in the tech sector with no real mitigants in the event of a downturn.

  • Yuta Makino
    Yuta MakinoSales at NTT DOCOMO

    OPM is of course deficit.

    But it’s a good investment and sound deficit.

    I encourage this stock listing.

    The loss from operations is

    2016:▲$400 million

    2017:▲$930 million

    2018:▲$169 million

    The source is...

    https://www.sec.gov/Archives/edgar/data/1533523/000119312519220499/d781982ds1.htm

  • Eric Artisan
    Eric ArtisanManaging Director at Artisan Venture

    Another Uber just waiting to go public. Smart move by the founder to cash out as much as he could before the IPO.

  • Weiyee IN
    Weiyee INChief Strategy Officer

    The Enterprise numbers should also be an indicator that traditional business and Enterprise are adopting the co working model. It makes absolutely no sense for large institutions or enterprises to maintain offices throughout the country, or even globally, especially in the age of remote access and the changes in lifestyle that are happening with society. The challenge for wework is the path to profitability during its land grab, as that is exactly what it is as a real estate play on the trend of

    The Enterprise numbers should also be an indicator that traditional business and Enterprise are adopting the co working model. It makes absolutely no sense for large institutions or enterprises to maintain offices throughout the country, or even globally, especially in the age of remote access and the changes in lifestyle that are happening with society. The challenge for wework is the path to profitability during its land grab, as that is exactly what it is as a real estate play on the trend of fragmentation and disintegration of traditional office working.

  • Romesh  Jayawickrama
    Romesh Jayawickrama CEO/Founder at BankerBay

    The level of craziness is revealed further through these filing details. Would you buy a house as an investment, if the costs of running that house are multiples of the rental income it generates? Probably not, right? WeWork is the largest “money-pit” imaginable. Also worth remembering that when a company is listed, the public is piling in, but most investors are cashing out....we are left holding the baby. No thanks.

  • Edward Mills
    Edward MillsOwner at PSIG

    Listen to Cramer on this one. Suboptimal investment losing money dependent on new business formation with possible downturn in the economy in the future. Stay away.

  • Much will be revealed as we watch WeWork navigate the inevitable recession...with so many enterprise customers, seems especially vulnerable to massive shifts in workforce.

  • And what about that dual class voting stock structure that gives Neumann full control without checks and balances?

  • John Gray
    John GrayFormer Banker Risk Management

    Real estate is now tech? Sounds bizarre . I really don't have time to dive into the apparantly convoluted financial transactions, voting control issues and leasing agreements that exist for Wework. Too many questions.

  • David Yakobovitch
    David YakobovitchAI Professor at Galvanize

    Enterprise is the future.

  • Henry Tobias Jones
    Henry Tobias JonesEditor of Dyson on: at Dyson

    On properties?

  • Tatsuya Oiwa
    Tatsuya OiwaSoftware Engineer at Quartz

    Interesting

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