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They have 84% occupancy, but revenues are still less than 40% of costs? Whatever they are doing ain’t working. Especially when “WeWork said it has reduced capi
by valuearb 8y ago
They have 84% occupancy, but revenues are still less than 40% of costs? Whatever they are doing ain’t working.
Especially when “WeWork said it has reduced capital expenditures through steps like a 20 percent cut in the cost per desk, or space one member occupies.” That sounds like a typical end of life trend for failing startups, reduce the value and quality of your product to desperately try to stem losses.
I work remotely for a startup and can get reimbursed for coworking space if we want it, but I’ve never been tempted. Why work in a noisy, distraction filled shared space when I can be far more productive working at home alone, with zero commute?
- Waterluvian 8y agoI'm offered it fully paid. I just don't see why. I'm sure to some it is important. But I have a basement office that's a ten second walk to my wife and son. The commute in the morning is also phenomenal.
- jedberg 8y agoThey explain it a littler further down by saying that they are incurring a lot of costs right now for offices that will bring in revenue in 2019. In other words they blame it on balance sheet imbalance.
- calpaterson 8y agoNormally this accounting problem is solved by capitalising those expenses and then matching them against future revenue. Otherwise every company that made investments would have the problem where investments in the future were affecting this years' profits. Does anyone know where the original filings can be found? Is this in EDGAR somewhere (I'm outside the US)?
- berberous 8y agoLooks like they sold non-registered bonds to institutional buyers. So not on EDGAR. They have a website where you have to submit name/company to get access, which is linked to in the below. https://www.businesswire.com/news/home/20180802005853/en/WeWork-2018-Financial-Results-Conference-Call https://www.businesswire.com/news/home/20180802005853/en/WeW...
- psychometry 8y agoSome people are more productive in a room with just a computer and none of the distractions that come with a home, family, pets, etc.
- icelancer 8y ago>> I work remotely for a startup and can get reimbursed for coworking space if we want it, but I’ve never been tempted. Why work in a noisy, distraction filled shared space when I can be far more productive working at home alone, with zero commute? These perks are meant for people with families.
- patrickaljord 8y agoI have a family of four and work from home. When you work remotely you can buy outside of expensive big cities where you can get bigger spaces cheaper.
- icelancer 8y agoI have a family of four, work from home sometimes, but find it hard to have kids respecting your workspace because you're "home" after all, so why not barge in? My wife has trouble with boundaries too on that issue. It's a normal problem for people who don't "get" IT/WFH. You're home so.... we can bother you, right? Lots of people have these problems. It's super common because the idea of working from home and being unavailable is inherently pretty odd for those who don't quite get how context-switching is an extreme productivity killer.
- valuearb 8y agoI have a family of four as well, and when school is out they can be a distraction. The difference is I have a door to shut, not an open work plan.