Co-working spaces company WeWork plans to go Public this year
WeWork, the company that provides shared working places for freelancers, start-ups and large enterprises, is considering going public this year. The company has been recently valued at $40 billion. WeWork is operated by its parent company We Company and an IPO this year might see troubles as investors would be concerned about valuations of a company without clear path to profit.
Last year, WeWork generated revenue of $1.8 billion and reported a loss of $1.9 billion. The company has been fast expanding in many cities. The company has raised money from big names in venture capital industry. While many companies like WeWork have raised money at good valuations, stock market debut could be a totally different game. Investors look for profits and sales growth. WeWork reported slightly better performance during first quarter, with revenue at $728 million and loss at $264 million.
Currently, WeWork operates at 425 locations, and has over 400,000 members. The company is also planning to own the spaces which it offers for rent to its members. WeWork members have included startups such as Consumr, HackHands, Whole Whale, Coupon Follow, Turf, Fitocracy, Reddit and New York Tech Meetup.
WeWork investors as of 2014 included J.P. Morgan Chase & Co, T. Rowe Price Associates, Wellington Management, Goldman Sachs Group, the Harvard Corp., Benchmark, and Mortimer Zuckerman, former CEO of Boston Properties.
It would have been much better if WeWork had strong numbers to support its IPO. But, the company is still far from turning profitable.