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Automatic TRANSCRIPT

Today we're going to look at the complex topic week which is easily work at viable business model be if you've been following. Actually the news lately you so that we work is pretty much anywhere and why. I don't like to cover things that really into the news because there is a lotta noise around. It's very hard to make sense of it there. Everyone when denning opinion like what's going on. I won't do really highlight. I flew points and really give respective again just because I think it is a lot of noise right now so St John's is a viable business model. It's not an for several reasons now. Let's go point by point to over a few things that we might want to look at when it comes to to we work now we work was at ease was a private company actually still a company that will strain to actually get a go through an IPO was trying to become a public company and the one thing which is interesting interesting is that we work adjust two thousand eighteen. According to several kinds of valuations at our company was worth more than forty billion dollars which which is a lot breath so now one question getting comes to mind Isa are we actually going through a private bobble in terms of private companies education because what's up rent now. It seems that at least in two thousand nineteen the company's got listed as they didn't manage to actually we have a successful appeals and actually manage to go to a really excitement of the market doc it around those companies now. What are the reasons behind it and you know when talking about companies that I feel I'm thinking about companies like Uber or lift or other. There are other companies that are really field this year now. The the the party said I mean look at the the we work financials the one thing that you know this race that of course company now but he arrived from two thousand eighteen eighty two to nineteen with talking about the first Amancio Manso year but this time he also improved. It's expensive quite substantially there things to take into account. If if we work was going to wipe with buzzy the numbers you can imagine that we wouldn't have oldies noise that that he's right now and one thing is also about timing timing timing. It's betty white important as you imagine it can really make or break a company and in in this year that there are the worry about recession that increasing freezing you you can imagine that for a company that could afford to actually go through an IPO without having a viable business model l. A. Becomes very hard when you go through a decision at his video especially when your primary customers are companies that actually are stuffed upset if we go through a decision would be the first companies to actually suffered from it. It's very important also delighted that we work as a really so you know improving its enterprise customers which we're getting that those might seek if we go through a recession but at the meantime on the other end if we think we interbike customers by be using we work as a really an expansion buckner so we'd ally on we work as enterprise company because we're trying to expand the operation with one free since I'm just thinking in terms of me me as a as a potential enterprise customer we work so instead of relying on internal resources and expanding geographically because he may be a recent too risky ASCII because then it becomes harder to to to to cat space and stuff we we use we work as a partner for so again imagine that if we both rotation diseases diseases. I sorta viable which will get cut so again recession. He's hard because for especially for a business model which hasn't proved viable yet yet. It's it's very hard another aspect that you know this when you go through the. We Work Appeal our attempt IPO because it was if you following the news right now you know that the company has withdrawn so far at least delaying the ideal so in might reconsider near enough in a few months things are stopped workout free since death thinking fire quite a quite a few employees but one thing that you know these when you go through a dealer of the as one which is the forum that companies as companies to meet when they after will probably could tell there to meet these form to the SEC has the Security Exchange Commission. What is that. There are a few quite a few buzzwords so so there are many things that we work is is doing that again if the company was a viable business model if we were in a timing where things were working properly. We were not going through are probably the people were not expecting a recession to come. Those things will be steep paths. I think again for many passwords you might use if on the other end you have Saudi auty business that there's nothing that can save you a if you look at the financial companies like starbucks that had somebody uses the buzzwords him in the culture of the company and in many cases companies themselves are caught who are really cultures. Really you know they really try to emphasize. This is when Bet Katcher dating. That's what makes them special even again. Companies are businesses that make money. They need to make money consistently so fittings things had come out to mind when we go to the one we worked. His first world. We work is trying to really redefine a new sort of model which is which combining goals space as now. If you know how commercial real estate works you know that usually what happens is that you ran an office our RSP's commercial space for your company and all you do is really you pay the rent and then free since the end of the year you might be the so called the Camman on Adia maintenance fees. which really are the shared the shared expenses that that the you know the lender the landlord might anticipate for for the commercial tenants? Annan's Gadiya switched. Dan can be spread for for the Commercial you know Florida Florida the the the people renting those commercial spaces at the end of the year depending on the kind of contract that you have of course you can pay the quote the pulmonary maintenance in different ways but again these these important for the landlord in which is a running business because he can actually get back a few of the of a did the expenses that he had on no commercial property and it can be also used as a leverage when you have a contract with a commercial tenant what happens is a union see something like okay. I'm going to reduce the KOMO Nadia maintenance fees. If you WANNA be free since then I amount of money now we were starting to redefine this space by actually adding more to it so that a a company sparked of the we were community that will be using the co working of a company actually would be a retainer so be a monthly Italy fee a subscription fee and that's where the space has a Saturday's comes to police now if we were also voted species said listen if this is. GonNa turn are now to be a viable model. I mean we we're going to look at it in in the instagram and I think it's fine you know people arguing whether accompany bunny can come up with these new analogy and just get we did. I think he can if he has a viable business model again here. The point these I is that the company is in bad timing and in these bad timing where we're going through a recession it's using up the bats words and it's not showing showing a viable business model because again those same words that we're seeing today that were used a back in two thousand sixteen seventeen when we work was considered one of the hottest companies around and valued over forty billion dollars. I think what's making huge difference. He's the fact that the company right now is a very bad timing go there are also that aspects like of the corporate governance had the fact that the recent the the the founder CEO Newman as been having a little control and managing teams out not transparently from from the way it was you know leasing space to the company and also the fact that the company Bunny at Bush's including each for technology company even though again we work a main attempt is really to form a commissioner real estate contract which usually again it's it's a it's simple contracting something which is more on on on Saturday space where you know it's common in software as a service speeds in all the other services industry that we have today in in the in the after throughout the Internet the area where you can just fight several kinds of surveys you leverage on data technology another savviest easiest to actually have have the company spot from being something on on a daily basis now aiding said. Did they really again another another keeping the thing it's about the addressable market where the company argues that had he said these these these market that which can be I think over over three years or something like that tight remember. The exact number is not the when he comes to this will markets cadets beak big question mark when Gumbiner essay these going to be these album is going to be the market in ready the how how do you even know because that depends many variables and you can be really sick as possible or you can dream big but hey at the end of the bench about how economy is going to evolve and you know. It's very a hard to predict so again. is we work a viable business model. It's not and it's not because is not showing yet a bottom line which which it's going to work. ability heats a it's really a bad timing where the company still using buzzwords in a time where you need to be more really sick we're going through and so there are more people which are skeptical about what's going on any future customer base which is made of startups of course the risk is that you're gonna be the you're going to be the first company which is GonNa four once the recession comes and then if you know we asked whether we work is a fraud. I mean if we look at the business itself. Of course it's real business if we city whether the numbers are if we rely on the numbers they gave plus in the financial statements with these these further not something that you know there's going to be an investigation or something things will will you know would would be figuring out right now. It's really understanding that when you don't have a viable business model and you're going through a recession and and you're keep using the male that you'll be using in the past to Pamper your valuation a private market which is less than spying compared to market reasoning to change your mindset need to make sure that you understand that probably market it takes a different approach Yuguang through our session unique understand the context so really for me. This is a lack of understanding on the context right now so that we went through recession understanding that at the same model that used used to get to a fifty billion dollars relation is not the same to actually keep their valuation and five there and that actually when you have a viable business model. It's very eddie easy to argue whether the company is going to work them much or more