July 12, 2016 / 2:41 AM / 3 years ago

WeWork CEO sees $1 billion revenue run-rate in 2017

Adam Neumann (C), CEO of WeWork, and his wife Rebekah Newmann (L), chief brand officer for the company, are shown onstage as they are interviewed by Fortune's Andrew Nusca during the Fortune Brainstorm Tech conference in Aspen, Colorado, U.S. July 11, 2016. Stuart Isett/Fortune Brainstorm TECH/Handout via Reuters

ASPEN, Colo. (Reuters) - The chief executive of WeWork said on Monday that the co-working office space provider would hit a revenue run-rate of $1 billion next year.

WeWork, one of the biggest ‘unicorns’ - startups worth more than $1 billion - recently raised more than $400 million at a valuation that sources pegged at more than $15 billion. The company provides office space for startups and others, stressing the community-oriented character of its facilities.

The company’s valuation far exceeds that of publicly traded companies such as Regus Plc RGU.L that also rent shared offices.

Speaking at the Fortune technology conference in Aspen, Colorado, CEO Adam Neumann said that if his company can reach 1 million customers in the United States - which he said was readily achievable - it would have annual sales of $12 billion and earnings before interest, taxes, depreciation and amortization of $4 billion.

Neumann, who appeared with his wife and business partner Rebekah Neumann, the chief brand officer for the company, said the company was in the “community” business, rather than the real estate business.

He said that would protect WeWork’s business in the event of a recession, which some analysts have cited as a big risk for the company.

“When times are tough, people want to be surrounded by people,” he said. “We’d do extremely well through a recession, for a variety of reasons.”

Reporting by Jonathan Weber; Editing by Bill Rigby

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