If you wanna put those financials in perspective... We Company financials chart: https://imgur.com/a/Xky1NNh
At first I thought your graph was wrong... now I realize their business model is the thing that is wrong.
The We Company S-1
201–210 of 346 posts
Re: The We Company S-1
#202> We will be treated as an “emerging growth company” pursuant to the JOBS Act for certain purposes until the earlier of the date we complete this offering and December 31, 2019. An emerging growth company may take advantage of specified exemptions from various requirements that are otherwise applicable generally to public companies in the United States. These exemptions include:
> - an exemption to include in an initial public offering registration statement less than five years of selected financial data
> - reduced disclosure about executive compensation arrangements and no requirement to include a compensation discussion and analysis
> - accounting standards transition period accommodation that allows for the deferral of compliance with new or revised financial accounting standards until a company that is not an issuer is required to comply with such standards.
Number 2 seems surprising. Is that par for course in these dealings?
Re: The We Company S-1
#203Based on the filing the company awarded 42M stock options to the CEO earlier this year. The filing mentions a share price of $110 per share, so that's over $4B. That can't be normal, right? That's 10% of the entire company. It's more than Elon Musk got for Tesla by a long shot, and that was already controversial.
Options require the stock to go up to be worth anything. So if the stock price increases ten percent, that would be $420M (120-110) * 42M shares. Still seems like an awful lot.
Re: The We Company S-1
#204Does the S-1 disclose the fact that the founder is also one of the company’s biggest business partners? He buys up properties and then leases them to WeWork. Seems like a red flag to me.
The JOBS act seems to get them out of some of that disclosure. On page 126: The JOBS act entitles them to "reduced disclosure about executive compensation arrangements and no requirement to include a compensation discussion and analysis"
Re: The We Company S-1
#205WeWork has $33.9 Billion in Non-canceable lease commitments, and it's lease payments are increasing 100% YoY. I think that is the true ticking time bomb for this company. In a world where billion dollar losses (Uber) seems somewhat normal, those lease obligations are still outrageous, and those payments will come due eventually, whether they have the money or not. In 2019 they attributed over $800 Million to operating lease costs. Every year, based on static growth that will double, and my bet is that it may even more than double in some cases. This isn't so much a company as it is a race to light cash on fire and run away.
Re: The We Company S-1
#206This statement though "The We Company is committed to being meat, single-use plastics, and carbon emissions free."
> carbon emissions free
Are they not using concrete in all the buildings they're building around the world?
Re: The We Company S-1
#207An interesting thing happened a bit ago related to public companies and how they must account for leases in the accounting standards update 2016-02, Leases (Topic 842). For lessees, any leases that are over 12 months in duration will need to be presented on the company’s balance sheet as a right-to-use asset and corresponding liability for the obligation to pay rent.
So if you are a public company; you can rent space from WeCompany at an 11mo period and you can magically reduce your liabilities vs signing your own office space. While this may seem like a small change, this change could allow execs to improve their financials with accounting gimmicks.
Re: The We Company S-1
#208Earlier quoted context omitted.
The retail margins are about the same as walmart. They don't have some magic sauce in selling things. AWS is their real money maker.
Aws was a blip on the rader for years when amazon was still one of the richest companies.
Look at their retained earnings on the balance sheet. It really only started going up when aws started getting more popular. Amazon always had an insane valuation.
Re: The We Company S-1
#209Based on the filing the company awarded 42M stock options to the CEO earlier this year. The filing mentions a share price of $110 per share, so that's over $4B. That can't be normal, right? That's 10% of the entire company. It's more than Elon Musk got for Tesla by a long shot, and that was already controversial.
Options require the stock to go up to be worth anything. So if the stock price increases ten percent, that would be $420M (120-110) * 42M shares. Still seems like an awful lot.
4.2M not 420M. 10% of 42M in options.
Re: The We Company S-1
#210My favorite part of new tech company filings is looking at the risk section and finding something to the effect of: "We are not profitable, and may never be." > 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. I understand the reasoning behind havin…
For actually useful comparisons, look at Regus/IWG which is larger and more profitable:
https://en.m.wikipedia.org/wiki/IWG_plc
I have used Regus on and off in the US for a decade. I also have a free WeWork subscription through my AMEX platinum (boosting numbers pre-IPO?).
Regus is actually better run and more comfortable...just doesn't have the millenial loft vibe. I think that vibe is costing them too much for a real estate play!