The owner of loss-sharing office supplier WeWork told employees Thursday that they cut their cash burn rate by nearly half compared to the end of last year and received a funding pledge of 1.1 billion. USD from SoftBank majority owner.
WEWORK BE TREATED HOLLYWOOD
The Company We said in an e-mail to employees that their second quarter results showed that the coronavirus pandemic was hurting its business but its financial position is strong.
Kimberly Ross, WeWork̵7;s chief financial officer, said: “Our early efforts to become a leaner, cash-conscious organization put us in a better position to adapt. quickly, navigate new reality and realize your future business goals, ”Kimberly Ross, WeWork’s chief financial officer, said on an e-mail viewed by Reuters.
WEWORK UNVEILING PLAN FOR ADDITIONAL ECONOMIC CHANGE
Ross said revenue for the quarter reached 882 million, up 9% from a year earlier. WeWork for the first quarter reported revenue of $ 1.1 billion, exceeding nine figures for the first time, and its cash amount of $ 482 million.
WeWork has $ 4.1 billion in cash and outstanding cash commitments, including $ 1.1 billion in new financing, Ross said. WeWork in July indicated that it is expected to have positive cash flows by 2021, according to the Financial Times.
WeWork ended the quarter with 612,000 members, of which 48% were from highly regarded “Enterprise” customers, businesses with 500 or more employees.
The results are released almost a year from the date the company announced its plans to the public when it was valued at $ 47 billion and looks poised to be one of the hottest IPOs of the year.
WeWork soon went into a spiral when revelations about the company’s poor management emerged. The company has since undergone a major regulatory change and remains entangled in lawsuits over a $ 3 billion public tender to existing shareholders.
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