Though WeWork is valued at $47 billion by investors, the company reported net losses for the past several years. In 2018 alone, WeWork posted losses of $1.6 billion on $1.8 billion in revenue.
Frankly speaking, WeWork hasn't turned a profit yet — and that's a massive risk for all investors.
That risk factor is described as such: "We have a history of losses and, especially if we continue to grow at an accelerated rate, we may be unable to achieve profitability at a company level (as determined in accordance with GAAP) for the foreseeable future."
Why does WeWork keep posting losses? Because of its aggressive investment strategy that WeWork says is, "required to grow our business, including the significant increase in recent periods in the number of locations we operate."
Moreover, that investment strategy isn't stopping any time soon (emphasis ours):
"We expect that these costs and investments will continue to increase as we continue to grow our business. We also intend to invest in maintaining our high level of member service and support, which we consider critical to our continued success. We also expect to incur additional general and administrative expenses as a result of our growth. These expenditures will make it more difficult for us to achieve profitability, and we cannot predict whether we will achieve profitability for the foreseeable future."