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Lost $ 1.25 billion of $ 934 million in revenue



Corp. CEO Masayoshi Son speaks during a joint announcement with Toyota Motor Corp. to start a new business to develop mobility services in Tokyo, Japan, October 4, 2018.

Alessandro Di Ciommo | NurPhoto | Getty Images

WeWork & # 39; s losses continued to increase in the third quarter, reflecting a rapid growth strategy implemented by Exhibited CEO Adam Neumann, according to a slide deck the company presented to investors.

The tire showed losses of $ 1

.25 billion (unadjusted), more than 150% from a loss of $ 497 million in the same period the year before. Revenue nearly doubled to $ 934 million from $ 482 million. The company also said that the occupancy rate had dropped to 79%, the lowest figure since mid-2017, as a result of a rapid expansion of new space.

WeWork added 115,000 new desks during the quarter, which the company called a record. According to a report last week from the real estate company CBRE, WeWork accounted for 69% of US leases in the third quarter and was the top leaseholder in nine of the 10 largest markets for flexible space growth.

WeWork, which withdrew its IPO in September and replaced Neumann before taking a $ 5 billion bail from SoftBank, showed solid corporate membership growth to 264,000 (up from 214,000 at the end of the previous period), and generated revenues of $ 4.3 billion. A large part of the strategy under the leadership of SoftBank, which now controls 80% of the company, is to focus on larger corporate customers.

The company would have run out of cash by the end of October had it not received the new funding from SoftBank, CNBC reported earlier. WeWork was looking for fresh capital after pulling out its IPO as investors greatly appreciated the huge losses and unusual accounting and business arrangements that Neumann and his lieutenants had made.

Since then, the company has been battling with non-core businesses and is reportedly talking to a number of candidates to permanently replace Neumann, including T-Mobile CEO John Legere.

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