Co-presented by

We Company first-quarter loss narrows slightly as WeWork members grow

 We Company first-quarter loss narrows slightly as WeWork members grow

NEW YORK (Reuters) - The We Company, parent of flexible workspace operator WeWork, said on Wednesday losses narrowed slightly in the first quarter from a year earlier to $264 million as revenue continues to double annually and large customers doubled from two years ago.

The New York-based company, which earlier on Wednesday said it created a $2.9 billion real estate investment platform that marks an evolution in its investing strategy, said interest and other expenses widened to $378 million from $19 million in the first quarter of 2018.

Net losses declined by $10 million from $274 million a year earlier and cash on hand was $4 billion, and rose by $1 billion on April 15 from warrants due to SoftBank Corp, a major investor in WeWork. The company said it expected a further $1.5 billion from warrants due to SoftBank in April 2020, it said.

Revenues rose to $728.3 million in the first three months of the year, while the company's run-rate jumped to $3.02 billion on an annualised basis using March figures multiplied by 12.

Memberships in the first quarter jumped to 466,000 from 219,000 a year ago, while memberships from enterprise clients representing companies with at least 1,000 employees rose to 175,000, or 40% of WeWork's customer base.

Adjusted operating earnings, or EBITDA, were a negative $220 million, roughly double the prior year's negative $107 million.

WeWork began publicly disclosing a limited set of its financial statements last year after raising $702 million in a sale of a high-yield bond. Ahead of the report, WeWork's junk bond slipped fractionally in price on Wednesday, with its yield rising to a two-week high of 8.97%.

(Reporting by Herbert Lash; Editing by Lisa Shumaker)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Your guide to the latest seat tally, live updates, analysis and list of winners for Lok Sabha Elections 2019 on Follow us on Twitter and Instagram or like our Instagram or like our Facebook page for updates from all 542 constituencies on counting day of the general elections.

Updated Date: May 16, 2019 04:05:20 IST