WeWork Cos. is tapping the bond market for the first time and in doing so, has provided a rare glimpse into the startling numbers behind its break-neck expansion.
The co-working company, which is seeking $500 million to finance yet more growth, has amassed a global portfolio of more than 14 million square feet, approaching the size of the entire office and retail space in London’s Canary Wharf district, according to bond documents reviewed by Bloomberg. In all, the New York company has committed to pay at least $18 billion in rent for that space, the documents show. WeWork declined to comment.
These are the highlights:
Membership
WeWork boasted 220,000 members as of March 1, up from 7,000 four years ago. Those members have access to 251,000 desks in 234 locations spanning almost two dozen countries. While the company is best known for luring tech startup freelancers, the bond documents reveal an increasingly diverse customer base.
Revenue
The massive jump in locations and memberships has driven revenue growth in excess of 100 percent. But costs are rising faster, resulting in a total net loss of $934 million last year. The company’s growing use of discounts to attract new members has also pushed down the revenue it generates from each of them by 6.2 percent to $6,928, the documents show.
