WeWork has yet to breach the public market, but the startup has made headlines after its controversial capital maneuvers in recent history.
Now valued at $47 billion, the 9-year-old office-sharing juggernaut has inspired plenty of skepticism about its valuation, as well as basic questions from investors like what the company actually does, and whether or not it's a tech company.
Though WeWork is growing rapidly (revenue jumped 113% to $728 million), its losses are also expanding. Adjusted EBITDA loss more than doubled in the quarter, to $220 million, and net loss, excluding an investment gain, rose from $274 million to $631 million. Both revenue and losses more than doubled in 2018 as well. Revenue reached $1.8 billion, but the company lost $1.9 billion.
Concerns about hefty losses have sent stocks like Uber and Lyft falling since their debuts earlier this year, and threaten to spoil WeWork's IPO. However, WeWork is a fundamentally different business from Uber, Lyft, and Airbnb (which could also initiate an IPO this year), and shouldn't be grouped together with them.
A closer look at the company's fundamentals and its long-term opportunity shows that it could be the big winner in this year's IPO class if or when WeWork actually goes public. Here are three reasons:
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