WeWork reports slower cash burn in first quarter: CFO email

WeWork reports slower cash burn in first quarter: CFO email

Outbreak of the coronavirus disease (COVID-19) in Los Angeles
An empty WeWork office is seen after California issued a stay-at-home order as the spread of the coronavirus disease (COVID-19) continues, in Los Angeles, California, US, Apr 3, 2020. (Photo: Reuters/Lucy Nicholson)

REUTERS: The We Company, owner of WeWork, said on Thursday that for the first time quarterly revenue surpassed US$1 billion and cash burn improved 60per cent sequentially, but the money-losing shared office operator did not mention profitability in an email to employees that was reviewed by Reuters.

Cash and unfunded cash commitments were US$3.9 billion as of March, Chief Financial Officer Kimberly Ross said in the email.

The company said last quarter it had US$4.4 billion in cash and cash commitments as of end of 2019.

WeWork said in late March its cash on hand was enough to meet the challenges posed by the coronavirus pandemic.

First-quarter revenue rose 45per cent to US$1.1 billion.

(This story corrects headline to say "slower cash burn", paragraph 1 to say "cash burn improved", not "free cash flow increased")

(Reporting by C Nivedita in Bengaluru and Herbert Lash in New York; Editing by Shailesh Kuber)

Source: Reuters