WeWork's parent company filed for an IPO Wednesday and in doing so- revealed it's financial standing. The We Company's statements disclosed its revenue grew fast, but so did its losses.
The firm which provides shared office spaces saw its losses balloon to $700 million in the first half of this year. In that same period, its revenue more than doubled to over one-and-a-half billion dollars.
But We did not say when it expects to turn profitable. The company was valued at $47 billion in the private markets in January.
Its business model of leasing property long-term, sprucing and divvying it up, then subleasing them to start-ups and entrepreneurs in short-term contracts has faced investor skepticism. Analysts say investor tolerance is limited for a company that keeps raising capital without returning anything.
Its IPO comes in a year when some Silicon Valley firms that have gone public- have struggled to win over investors.
Uber and Lyft, for example, have reported billions of dollars in losses with no timetable to reach profitability, and their shares have stumbled since their debuts.
What's more, We's filing comes at a time of market turmoil amid the prolonged U.S.-China trade war. It hopes to list next month but hasn't disclosed how much it seeks to raise.