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The owner of money-losing shared office provider WeWork told employees on Thursday that it had reduced its cash burn rate almost halfway through the end of last year and received a $ 1.1 billion pledge in new financing from majority owner SoftBank.
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The We Company said in an email to employees that the second quarter results show that the coronavirus pandemic business has broken down, but its financial position remains strong.
“Our early efforts to become a streamlined, cash-conscious organization put us in a better position to adapt quickly, navigate new realities and deliver our future business goals,” said Kimberly Ross, Chief Financial Officer at WeWork, in ‘ e-mail seen by Reuters.
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Revenue in the quarter reached $ 882 million, a 9% increase from a year earlier, Ross said. WeWork reported revenue of $ 1.1 billion in the first quarter, the first time it had exceeded nine figures, and its cash consumption was $ 482 million.
WeWork has $ 4.1 billion in cash and undisclosed funds, including the new $ 1.1 billion in new financing, Ross said. WeWork announced in July that it would expect a cash-flow positive in 2021, according to the Financial Times.
WeWork ended the quarter with 612,000 members, 48% of whom were award-winning “Enterprise” customers, companies with 500 employees or more.
The results were released nearly a year before the day it announced plans to go public when the company was valued at $ 47 billion and looked to be one of the worst IPOs of the year.
WeWork soon entered a tailspin when revelations of mismanagement of companies appeared. The company has since undergone an enormous management shake-up and remains stuck in lawsuits over a $ 3 billion offer to existing shareholders.
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