We company, the parent company of Wework, a US shared office start-up, told employees on Thursday that it had cut its cash consumption rate by nearly half from the level it had at the end of last year and received a new $1.1 billion financing commitment from Softbank, the largest shareholder.
the company said its second quarter results showed that its financial position remained strong despite the damage to the business caused by the new coronavirus pandemic.
Kimberly Ross, the company’s chief financial officer, said in an email to employees: “our early efforts to become a leaner, more cash aware organization have enabled us to better adapt quickly to new realities and achieve our future business goals.”
the company’s second quarter revenue reached 882 million US dollars, a year-on-year increase of 9%. In the first quarter of this year, Wework’s revenue reached $1.1 billion, exceeding $1 billion for the first time, and its cash consumption was $482 million.
rose said the company currently has $4.1 billion in cash and no reserve cash commitments, including Softbank’s $1.1 billion in new financing. Wework said last month that it expected cash flow to turn positive in 2021.
as of the end of the second quarter, Wework had 612000 customers, of which 48% were “enterprise” customers, that is, enterprises with more than 500 employees.