In the interesting turn of events on Thursday, WeWork, the shared provider for money-losing announced that it cut-short cash burn rate to half from the previous year’s end. Besides, it has signed an agreement of $ 1.1 billion in a new financing partnering with SoftBank Group Corp, which is the majority owner.
Corresponding through emails, the company told its employees that coronavirus pandemic had hurt the company’s prospect, but it was financially robust.
Company’s CFO Kimberly Ross told that the quarter’s revenue remained $882 million, a 9% spike from the last year. Notably, the company had reported a revenue of $ 1.1 billion in the first quarter. It had a cash burn of $ 482 million.
WeWork owns $4.1 billion as unfunded cash commitments and cash. It includes the latest deal of $ 1.1 billion. Notably, the company in July had signalled to become cash-flow positive by 2021.