WeWork Posts $264M Quarterly Loss, as It Expands Globally

bloomberg.com

30 points·pseudolus··7 comments

What really matters is growth to cost, if every dollar they spend results in 1.1 earned dollars tomorrow, that's great, that's what I want to see as an investor. If every dollar invested results in more negative dollars, well.... When does the bonfire stop, when money stops going in.

As surprised as I am, they seem to be on the right track from reading this article

Update: ok after selling junk bonds and losing almost $2b a year going for the IPO? Yeah that won't end well. They're another loser looking for public fund bag holders

That comment turned quickly!

Interesting to leave out "Revenue more than doubled to $728 million in the same period, as did membership."

I mean, worst case they have to sell their assets, which have value.

Unlike Uber if it goes away there isn't much to sell besides their offices.

They’re mostly just leasing, not owning.

This incorrect. The vast majority of their properties are leased on long-term agreements. Which means whilst these leases might make them money if they can rent them out for a good price, they're actually a liability since they're obliged to pay the leases even if they can't rent out the space.

They will strategically default when the time comes. Their leasing structure lends itself to that sort of financial maneuver.

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