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WeWork Cut Forecasts as CEO Asked Employees to Change ‘Spending Culture’ – Bloomberg

The financial projections in the document show a company that is growing rapidly but had been too optimistic. WeWork initially expected to bring in $620 million in revenue for 2016; it revised that number to $532 million. For adjusted earnings, before interest, tax, depreciation and amortization, the company cut an original projection of $65 million […]

The financial projections in the document show a company that is growing rapidly but had been too optimistic. WeWork initially expected to bring in $620 million in revenue for 2016; it revised that number to $532 million. For adjusted earnings, before interest, tax, depreciation and amortization, the company cut an original projection of $65 million for the year to $14 million.

The document said $90 million of lost revenue came from “desk slippage,” which refers to desks becoming available later than expected due to building opening delays. For WeWork, which charges customers fees to rent shared office space that it leases, delays are costly.

Source: WeWork Cut Forecasts as CEO Asked Employees to Change ‘Spending Culture’ – Bloomberg

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