Regus is a profitable Co working company with less revenue (3.2B 2018). Why do you think WeWork won't be able to pull it off?
Bad leadership, for one...
I think we can be profitable, there's huge demand for the product, and Regus showed profitability exists in the model. But wanna hear what you think
The answer is expenses. You got to cut expenses now that you’re not trying to raise world consciousness
Finally were gonna stop that consciousness nonsense
Damodaran put together an analysis http://aswathdamodaran.blogspot.com/2019/09/runaway-story-or-meltdown-in-motion.html
If their debt is structured poorly (aggressive growth), plus lack of growth in small businesses, I could see how profitability is impossible in the short term.
Interesting
Because WeWork’s expenses exceed its income.
1. Regus CEO doesn't rent his property to Regus for personal gains. 2. Regus didn't buy right to it's name from a shell company its CEO setup to pocket quick profit. 3. Regus isn't trying to raise world consciousness or any other cult stuff. 4. Regus doesn't fancy around as a tech company and burn money like no one's business. I know its old news that came out, but it's just the way company was setup and run. Huge liabilities that the company holds. Maybe company can turn around but looking at the liabilities and cash needs, chances are slim.
I think at the moment the view is that they’re still a going concern. Some tough cost cuts and rethinking of business model is in order. They should be valued as real estate firm in my opinion.
WeWork can be profitable if it runs at low cost (as low as possible) and expands a lot. Its margins, for the properties themselves, are positive as far as I know. However, I think it would take a very long time before it returns to its one sky high valuation.
First, realize that you are not a tech company. This realization is going to solve problems for companies like Uber, Lyft, WeWork. Amazon.com (not AWS) is also not a tech company and it realized that way back, which is why it is afloat. Instead of pouring money into engineering, spend money for what matters- your product and what customers want. Engineering can be outsourced rather than paying 180k base to engineers in Seattle. Seattle is an expensive market for hiring engineers currently.
Flat out, you’re selling an expensive product. I can have a home office for a lot cheaper. Or I can just use my companies office. Cool idea, niche market. I was telling people around me wework would fail for over a year.
Shouldn’t you be telling us???? No wonder you guys went down the drain.
Compass vs WeWork Fight! Fight!