Wednesday 14 August 2019 1:27 pm

Wework lost $700m in first half, pre-IPO filing shows

Wework lost nearly $700m (£580m) in the first half of the financial year, even as revenue doubled, the company announced in its first detailed financial results yesterday.

The company, the listing of which next month is expected to value the business in the tens of billions, said it has no plans to start paying dividends in the foreseeable future.

Wework, which rents out flexible office space, did not reveal details of its float, such as the size of the offering or where it will list.

However, its last fundraising in January valued the business at $47bn.

Analysts estimate the company will seek to raise between $2bn to $3bn, and would likely become the biggest float since Uber earlier this year.

But with management warning that the company may wait years before becoming profitable, Wework faces a rough ride, said Neil Wilson, chief market analyst at

The filing showed revenue hit $1.54bn in the first six months of 2019. Full-year revenue last year hit $1.8bn, up from $436m in 2016.

Its pre-tax loss rocketed even faster, from $430m to $1.9bn in the same period. It appeared set to rise again in 2019, hitting $900m in the first six months at a 24 per cent increase year-on-year.

As it prepares to attract new investors, Wework recognised that such rapid growth could cause problems. Spending is going to continue increase as the company expands, it said, but its rate of growth may not be sustainable. The company also “may not be able to compete effectively with others,” it added.

It warned that its “future success depends in large part” on chief executive Adam Neumann, who may leave despite having an unusually high amount of control over the firm.

“We have no employment agreement in place with Adam, and there can be no assurance that Adam will continue to work for us or serve our interests in any capacity,” it said.

Wework has 528 offices which are rented out to startups and more established players across 111 cities.