Date: August 31st, 2015 11:50 PM
Author: Dun Liquid Oxygen French Chef
https://www.theinformation.com/weworks-gamble-on-growth?
Cliffs:
- In 2014 had $75M of revenue and $4M of operating profit
- Wework is locking in long term leases (likely at peak rates) to obtain benefits such as 1 year free rent
- This rent benefit is not amortized; the P&L reflects rent revenue with no matching lease expense
- This is complete bullshit and only used to pad near-term profitability
Fucking fraudlies. This is a fucking landlord valued like an internet startup with limitless growth potential
edit: here is a biz insider article with some ungated info
http://www.businessinsider.com/weworks-financial-projections-may-be-hard-to-meet-2015-8
(http://www.autoadmit.com/thread.php?thread_id=2822271&forum_id=2#28665372)