WeWork, which rebranded to the We Company ahead of the IPO, reported revenues of $1.54 billion and net loss of more than $900 million for the first six months of 2019.
The company said it had 527,000 members as of June 30, an increase of more than 90 percent from the year before.
WeWork, which is widely expected to go public as soon as September, was recently valued at $47 billion after SoftBank, the company’s biggest backer, invested an additional $2 billion in January.
WeWork, which rents out co-working spaces to startups, freelancers and enterprises, has to spend money for purchasing real estate in some of the most expensive markets and makes money back over time as companies and individuals pay their rent, or membership.
The company reported long-term lease obligations of $17.9 billion in the IPO filing, CNBC reported. When not discounted for accounting purposes, the future lease payment obligations were $47.2 billion as of June 30. The average length of an initial term of a lease in the U.S. is 15 years.
WeWork has 528 locations, up from 485 at the end of the first quarter of 2019. It plans to open 169 new locations. The company said 50 percent of its memberships are based outside of the U.S. and that enterprise customers, which made up 40 percent of its memberships, are its fastest growing membership type.
Its membership base has grown by over 100 percent every year since 2014. It took 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 six months to reach $3 billion of run-rate revenue.
WeWork’s biggest shareholders are the WE Holdings company and entities of Benchmark, JP Morgan and SoftBank. The WE Holdings company is controlled by WeWork CEO Adam Neumann.
56 percent of WeWork’s revenue came from the United States with the rest generated internationally for the first six months of 2019.
The company has expanded beyond co-working spaces and into new markets. It has launched communal housing complexes under its WeLive business, as well as early education schools called WeGrow.