Following its initial public offering filing, WeWork released first-quarter financials that showed higher revenues and a smaller loss from a year ago.
The results also showed WeWork is still reporting a gauge of profits it created called community-adjusted EBITDA.
Some Wall Street experts say this inventive method for financial reporting is reminiscent of the 1990s tech bubble.
They worry that sloppy public debuts by unicorns will affect the broader stock market.
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WeWork will soon join the drove of multibillion-dollar tech companies going public.
Following its initial public offering filing, the workspace-sharing company released first-quarter financial results. Its revenue more than doubled year-over-year to $728 million, while losses shrank by $10 million to $264 million.
The financials also showed the company is still adopting a unique metric it created: community-adjusted EBITDA.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) exclude these expenses and can help investors get a clearer sense of how a company is doing. But critics pointed out that WeWork’s version appeared to strip out some operating costs that should normally be included.
The company defines its metric as “equal to membership and services revenue, less adjusted rent, tenancy costs, and adjusted building and operating …read more
Source:: Businessinsider – Finance