WeWork Just Announced A Huge Loss Ahead of Anticipated IPO

Wall Street is anticipating the IPO of tech company WeWork, which is expected to be as soon as next month. For now, we got to see the company’s IPO prospectus which was revealed on Wednesday.

The company, which has been rebranded to the We Company, had said in April that it confidentially filed for its initial public offering.

We Company reported a net loss of over $900 million for the first six months of the year with revenues of $1.54 billion.

The company also reported that it had 527,000 members as of June 30, an increase of more than 90% from the year before.

“We have grown significantly since our inception,” the company wrote in the filing.

“Our membership base has grown by over 100% every year since 2014. It took us more than seven years to achieve $1 billion of run-rate revenue, but only one additional year to reach $2 billion of run-rate revenue and just six months to reach $3 billion of run-rate revenue.”

We Company rents out co-working spaces to start-ups, freelancers and enterprises. It has 528 locations, which is an increase from 485 at the end of the first quarter of 2019. It said it plans to open 169 new locations. The company said 50% of its memberships are based outside the U.S. and that enterprise customers, which made up 40% of its memberships, are its fastest growing membership type.

The We Company will trade under the ticker symbol “WE”.

J.P. Morgan Chase and Goldman Sachs are the main underwriters for the IPO.