WeWork doubled its revenue in the first quarter, and it’s gearing up for even more growth.
The company now has $3.4 billion in multi-year agreements with big companies, a major revenue driver as it moves away from overseeing coworking spaces for small startups and into managing office space for big companies.
For the first time, that figure is now bigger than its total run-rate revenue of $3 billion – a key sign of how important its enterprise business is, chief financial officer Artie Minson told Business Insider in an interview.
WeWork wants to be seen as more than a traditional landlord by offering a variety of services, from networking groups to tech-driven insights about space utilization. With its enterprise business, WeWork could oversee a company’s real estate footprint across the world.
WeWork is different from its co-working competitors because of its focus on this “space as a service” model for larger companies, vice chairman Michael Gross told Business Insider.
In the first three months of the year, revenue more than doubled year-over-year to $728 million, according to an earnings presentation reviewed by Business Insider.
We Work also added 82,000 desks during that time. The company says those desks will generate $9 billion of revenue over their life and $2 billion of profit.
“We fundamentally believe we’re at a paradigm shift on how physical space is being consumed. The world is never going back to 250 square feet per employee,” Gross said
WeWork’s international presence is an increasingly key growth driver, too. However, it’s driving average revenue per membership down – to $6,340 last quarter – as the company opens in cheaper locations, such as China and Latin America, Minson said. He added that membership revenue city-by-city is up, though the overall figure declined year-over-year.