The rapid expansion of WeWork’s office-space empire caused the company’s losses to balloon in the third quarter, according to a company presentation.
WeWork lost $1.25 billion in the three months that ended in September, up from $497 million in the same period a year earlier, according to the document, obtained by The New York Times. Revenue increased about 94 percent, to $934 million.
The numbers show why WeWork’s planned initial public offering became a spectacular flameout. The company was forced to withdraw the offering in September after investors grew nervous about the company’s finances and its unusual corporate governance. Adam Neumann, its co-founder, stepped down as chief executive under pressure.
WeWork leases office space, refurbishes and then rents it out to its customers. In the belief that there is a growing appetite for such space, it has added hundreds of new locations around the world. But doing so has cost hundreds of millions of dollars.
At the end of September, WeWork’s presentation said, the company had $2 billion in cash on hand. The document did not provide a cash-flow statement that would show how much cash the company used in the third quarter.
Previous financial statements showed that WeWork was using up cash quickly. SoftBank, WeWork’s largest outside shareholder, moved last month to rescue the company. It accelerated an equity investment and announced plans for WeWork to sell bonds to investors.
SoftBank’s overhaul of WeWork involves getting out of noncore businesses and focusing on profitable markets. The company is also expected to lay off thousands of employees in the coming weeks.
WeWork disclosed its financial performance through the end of June in documents it filed for the I.P.O. Because it scrapped the offering and remains a private company, WeWork is not required to publicly release financial statements. The latest numbers come from a presentation of selected financial data that is provided to investors who own WeWork bonds.