BRIEF-The We Company Says Believe Net Loss May Increase As A Percentage Of Revenue In Near Term

Aug 14 (Reuters) - The We Company:

* THE WE COMPANY - AS OF JUNE 1, 40% OF MEMBERSHIPS WERE WITH ORGANIZATIONS WITH MORE THAN 500 EMPLOYEES, DOUBLE THE 20% AS OF MARCH 1, 2017

* THE WE COMPANY - REVENUE FOR YEAR ENDED DECEMBER 31, 2018 WAS $1.82 BILLION VERSUS $886 MILLION

* THE WE COMPANY - HAD COMMITTED REVENUE BACKLOG OF $4.0 BILLION AS OF JUNE 30, 2019, ABOUT EIGHT TIMES THE $0.5 BILLION AS OF DECEMBER 31, 2017

* THE WE COMPANY - REVENUE FOR SIX MONTHS ENDED JUNE 30, 2019 WAS $1.54 BILLION VERSUS $763.77 MILLION

* THE WE COMPANY - AS OF JUNE 30, 2019, OUR RUN-RATE REVENUE WAS $3.3 BILLION, REPRESENTING 86% YOY GROWTH

* THE WE COMPANY - NET LOSS PER SHARE ATTRIBUTABLE TO CLASS A AND CLASS B COMMON STOCKHOLDERS FOR YEAR ENDED DECEMBER 31, 2018 WAS $9.87

* WE CO. - WE HAVE A HISTORY OF LOSSES, IF WE CONTINUE TO GROW AT ACCELERATED RATE, WE MAY BE UNABLE TO ACHIEVE PROFITABILITY AT CO LEVEL FOR FORESEEABLE FUTURE

* THE WE COMPANY - NET LOSS PER SHARE ATTRIBUTABLE TO CLASS A AND CLASS B COMMON STOCKHOLDERS FOR SIX MONTHS ENDED JUNE 30, 2019 WAS $4.15

* THE WE COMPANY - PRO FORMA NET LOSS PER SHARE ATTRIBUTABLE TO CLASS A AND CLASS B COMMON STOCKHOLDERS FOR SIX MONTHS ENDED JUNE 30, 2019 WAS $3.20

* THE WE COMPANY SAYS WE DO NOT CURRENTLY BELIEVE OUR NET LOSS WILL INCREASE AS A PERCENTAGE OF REVENUE IN THE LONG TERM

* THE WE COMPANY - PRO FORMA NET LOSS PER SHARE ATTRIBUTABLE TO CLASS A AND CLASS B COMMON STOCKHOLDERS FOR YEAR ENDED DECEMBER 31, 2018 WAS $4.41

* THE WE COMPANY - CLASS A COMMON STOCK AND CLASS B COMMON STOCK HAVE SAME RIGHTS, CLASS C COMMON STOCK HAS NO ECONOMIC RIGHTS

* THE WE COMPANY SAYS WE BELIEVE THAT NET LOSS MAY INCREASE AS A PERCENTAGE OF REVENUE IN THE NEAR TERM AND WILL CONTINUE TO GROW ON AN ABSOLUTE BASIS

* THE WE COMPANY - 2018 NET LOSS ATTRIBUTABLE TO WEWORK COMPANIES INC WAS $1.61 BILLION VERSUS LOSS OF ABOUT $884 MILLION IN 2017

* THE WE COMPANY - AS OF JUNE 1, 2019, HAD WORKSTATION CAPACITY OF 604,000, UP 101% FROM 301,000 AS OF JUNE 1, 2018

* THE WE COMPANY - AS OF JUNE 30, 2019, HAD 527,000 MEMBERSHIPS

* THE WE COMPANY - DO NOT INTEND TO PAY DIVIDENDS ON CLASS A COMMON STOCK OR CLASS B COMMON STOCK FOR FORESEEABLE FUTURE

* THE WE COMPANY - CEO ADAM NEUMANN VOLUNTEERED TO FORGO A SALARY FOR 2018

* THE WE COMPANY - FOR SIX MONTHS ENDED JUNE 30, 2019, ENTERPRISE MEMBERS ACCOUNTED FOR 38% OF MEMBERSHIP AND SERVICE REVENUE VERSUS 29% FOR SIX MONTHS ENDED JUNE 30, 2018

* THE WE COMPANY - EXPECT ENTERPRISE TO CONTINUE TO BE FASTEST GROWING MEMBERSHIP TYPE, CURRENTLY REPRESENTING 40% OF OUR MEMBERSHIPS

* THE WE COMPANY - CFO ARTIE MINSON'S FY 2018 TOTAL COMPENSATION WAS $676,000

* THE WE COMPANY SAYS MAY NOT BE ABLE TO CONTINUE TO RETAIN EXISTING MEMBERS, MOST OF WHOM ENTER INTO MEMBERSHIP AGREEMENTS WITH SHORT-TERM COMMITMENTS

* WE CO - AS CEO ADAM NEUMANN WILL CONTROL MAJORITY OF OUTSTANDING VOTING POWER, WE WILL BE A 'CONTROLLED COMPANY' UNDER CORPORATE GOVERNANCE RULES

* WE CO - MAY ELECT NOT TO COMPLY WITH REQUIREMENT THAT BOARD HAVE COMPENSATION COMMITTEE COMPOSED ENTIRELY OF INDEPENDENT DIRECTORS

* THE WE COMPANY SAYS J.P. MORGAN ENTITIES BENEFICIALLY OWNED 18.5 MILLION SHARES OF CLASS A COMMON STOCK PRIOR TO OFFERING

* THE WE COMPANY SAYS WE HOLDINGS LLC BENEFICIALLY OWNED 2.4 MILLION SHARES OF CLASS A COMMON STOCK PRIOR TO OFFERING

* WE CO - MAY ELECT NOT TO COMPLY WITH REQUIREMENT THAT BOARD HAVE NOMINATING AND CORPORATE GOVERNANCE COMMITTEE COMPOSED ONLY OF INDEPENDENT DIRECTORS

* THE WE COMPANY - CASH AND CASH EQUIVALENTS AS OF JUNE 30, 2019 (ON ACTUAL BASIS) WAS $2.47 BILLION

* THE WE COMPANY SAYS SOFTBANK ENTITIES BENEFICIALLY OWNED ABOUT 114 MILLION SHARES OF CLASS A COMMON STOCK PRIOR TO OFFERING

* THE WE COMPANY SAYS WE HOLDINGS LLC BENEFICIALLY OWNED ABOUT 111.85 MILLION SHARES OF CLASS B COMMON STOCK PRIOR TO OFFERING

* THE WE COMPANY - $2.5 BILLION IN CASH AND CASH EQUIVALENTS AS OF JUNE 30, 2019 INCLUDED CASH AND CASH EQUIVALENTS OF $535.8 MILLION OF CONSOLIDATED VARIABLE INTEREST ENTITIES

* THE WE COMPANY SAYS CEO ADAM NEUMANN BENEFICIALLY OWNED ABOUT 2.4 MILLION OF CLASS A COMMON SHARES AND 112.5 MILLION OF CLASS B COMMON SHARES PRIOR TO OFFERING

* THE WE COMPANY - EARNED ABOUT 44% OF REVENUE FROM SUBSIDIARIES WHOSE FUNCTIONAL CURRENCY IS NOT U.S. DOLLAR FOR SIX MONTHS ENDED JUNE 30, 2019

* THE WE COMPANY- UBS AG, JPMORGAN CHASE BANK, CREDIT SUISSE, AFFILIATES OF UNDERWRITERS IN IPO PROVIDED LINE OF CREDIT OF UP TO $500 MILLION TO ADAM NEUMANN

* THE WE COMPANY- ANTICIPATE THAT ALL FUTURE EARNINGS WILL BE RETAINED TO SUPPORT OPERATIONS AND TO FINANCE GROWTH AND DEVELOPMENT OF BUSINESS Source text : (http://bit.ly/2YOhaYH)

08/14/2019 11:55

News, Photo and Web Search