Here’s how much money WeWork made — and lost — last year

WeWork’s revenue doubled in 2017, but so did losses

TRD New York /
Apr.April 25, 2018 06:06 PM

Adam Neumann

As a private company, WeWork has always kept its numbers close to its chest, leaving the rest of us guessing how much — or how little — money it makes and whether that justifies a $20 billion valuation. But all that changed this week, when the co-working company filed to issue $500 million in bonds.

The bond documents offer a rare glimpse of WeWork’s financial performance. First, the good news: the company doubled its revenues to $866 million in 2017 and the average cost of building out its spaces fell by 22 percent to $5,631, the Wall Street Journal reported. WeWork held $2 billion in cash at the end of 2017.

But the company also more than doubled its losses to a staggering $933 million. The average revenue it makes per customer fell by 6.2 percent to $6,928 as the company offers more discounts, according to Bloomberg.

Meanwhile, WeWork has $18 billion in lease obligations, including $5 billion due by 2022, but the offering claims WeWork guarantees only 6 to 12 months rent on average for a 15-year lease.

Despite having raised billions in venture funding, co-founder Adam Neumann owns 75 percent of Class B common stock, giving him 65 percent of the vote over the company’s fate.

Over the past two years, WeWork paid $9.8 million in rent for buildings in which “Adam Neumann and certain of his immediate family members hold ownership interests,” according to the documents. The Real Deal previously reported that Neumann owns a stake in 88 University Place, where WeWork is a tenant. [WSJ] and [Bloomberg]Konrad Putzier


Related Articles

arrow_forward_ios
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
WeWork CEO Adam Neumann (Credit: Getty Images and iStock)

WeWork’s side businesses are fizzling

WeWork’s side businesses are fizzling
Sarah Pontius (Credit: Union College)

Another head rolls at WeWork

Another head rolls at WeWork
With many tech companies open to long-term remote work for their employees, questions are being asked about how that will impact the office and residential markets in hubs of tech talent. (iStock)

TRD Insights: What #WFH could mean for office and resi costs in tech hubs

TRD Insights: What #WFH could mean for office and resi costs in tech hubs
Sandeep Mathrani (WeWork, iStock)

WeWork offers pay-as-you-go workspaces

WeWork offers pay-as-you-go workspaces
WeWork CEO Sandeep Mathrani (Wikipedia Commons)

WeWork hires help to fill vast empty spaces from NYC to LA

WeWork hires help to fill vast empty spaces from NYC to LA
WeWork CEO Sandeep Mathrani (Getty, iStock)

WeWork courts big corporations as coronavirus slams startups

WeWork courts big corporations as coronavirus slams startups
Sandeep Mathrani and 620 6th Avenue (Google Maps)

WeWork now has a glut of NYC availability

WeWork now has a glut of NYC availability
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...