These are 2 things that caused WeWork's fall, according to Airbnb's CEO. (via CNBCMakeIt)
that its losses and revenues both doubled from the year before to $1.9 billion and $1.8 billion, respectively. According to FT, while WeWork projected $3 billion in revenue in March, it lost $700 million in the first quarter of 2019.
According to Chesky, the first lesson here is that not all tech companies are the same. Some are good businesses, and some are not. He says historically, investors would value companies at a one or a zero — meaning its either a tech company or its not a tech companyconference. "We now realize that is not that they aren't a tech company, it is that tech companies live on a continuum," he said.or what is your gross profit. Some [companies] like Microsoft and these really big tech firms have really high margins and other companies [have] really low margins.
In this case, WeWork — whose main business model is to lease or buy office space and transform it into smaller offices to rent to small business owners or start-ups — is abusiness, meaning its service sells for very close to the price that it costs the company to get the real estate it leases out.Chesky, who started Airbnb in 2008 when he was 26, says the second big lesson is that founders have to be really thoughtful with their actions early on.
"I used to get advice from somebody [that said], imagine everything you do will be on the cover of The New York Times, because one day it very well could be," Chesky said.
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