NEW YORK–(BUSINESS WIRE)–WeWork Inc. (NYSE: WE), the leading global flexible space provider, disclosed financial results today for the three months ended June 30, 2022. Second quarter and other recent highlights include:
- Revenue for the second quarter was $815 million, an increase of 7% quarter-over-quarter and 37% year-over-year. Revenue using the Company’s budgeted foreign exchange rates was $841 million, above the Company’s guidance of $800 – $825 million.
- Consolidated physical occupancy in the second quarter was 72%, including committed memberships.
“From our core dedicated space offerings, to our access products and newly launched software solution, WeWork Workplace, our second quarter results demonstrate how the versatility of our offerings provide companies of all sizes with the ultimate adaptability,” said Sandeep Mathrani, CEO and Chairman of WeWork. “As we head into the second half of the year, we remain confident in our proven ability to execute against our goals of growing revenue, increasing occupancy and continuing to drive towards profitability.”
Second Quarter 2022 Consolidated Financial Results
- Revenue for the second quarter was $815 million, an increase of 7% quarter-over-quarter and 37% year-over-year. Revenue using the Company’s budgeted foreign exchange rates was $841 million, above the Company’s guidance of $800 – $825 million.
- Net Loss was $635 million, a 31% improvement year-over-year. Net loss includes approximately $391 million(1) related to significant non-cash expenses.
- Adjusted EBITDA was negative $134 million, a $78 million improvement from the first quarter of 2022 and a $315 million improvement from the prior year period, and within guidance of negative $125 – $175 million.
(1) Refer to footnote 2 in the Net Loss to Adjusted EBITDA reconciliation for significant non-cash expenses included in Net Loss.
Space-as-a-Service:
- As of June 30, 2022, WeWork’s systemwide real estate portfolio consisted of 777 locations across 38 countries, supporting approximately 917,000 desks and 658,000 physical memberships, equating to 72% occupancy, and an increase in memberships of 5% quarter-over-quarter and 33% year-over-year.
- Systemwide gross desk sales totaled 205,000 in the second quarter, or the equivalent of 12.3 million square feet sold. Systemwide new desk sales were 93,000 in the second quarter or the equivalent of 5.6 million square feet.
- As of June 30, 2022, WeWork’s consolidated real estate portfolio consisted of 641 locations across 33 countries, which supported approximately 749,000 desks and 528,000 physical memberships and equates to occupancy of 70%, and 72% when including committed memberships. The growth in consolidated physical memberships was 5% and 37% quarter-over-quarter and year-over-year, respectively.
- On a consolidated basis, gross desk sales totaled 160,000 desks sold in the second quarter of 2022, which equates to approximately 9.6 million square feet sold. Consolidated new desk sales were 73,000 in the second quarter or the equivalent of 4.4 million square feet.
- WeWork reported average revenue per physical member (“ARPM”) of $481. ARPM, using the Company’s budgeted foreign exchange rates, was $497, an increase of 3% quarter-over-quarter.
WeWork Access:
All Access memberships grew to 62,000 as of June 30, 2022, an increase of 13% quarter-over-quarter, representing an additional 7 percentage points of occupancy. Growth in All Access memberships yielded annual run-rate revenue of $180 – $190 million.
WeWork Workplace:
On July 19, WeWork launched WeWork Workplace, a new space management solution built in partnership with Yardi, the leading provider of real estate software. WeWork Workplace provides companies with a universal platform that enables inventory management across office spaces, enhanced employee experiences and space optimization through insights and analytics. WeWork Workplace marries space, asset and people management capabilities, removing guesswork from designing a strategic work model by providing actionable data to inform decision making. As a result, the software aims to help employers reduce real estate costs, while empowering employees to more purposefully engage with the spaces they choose and create more meaningful physical connections. To date, the Company has signed 11 companies to the platform, providing them with 7,400 licenses to manage spaces in WeWork’s portfolio and in non-WeWork locations. The pipeline includes over 100 companies comprising more than 35,000 licenses.
Liquidity:
WeWork ended the second quarter of 2022 with cash, commitments, and access to liquidity of approximately $1.7 billion. This includes approximately $625 million of available cash, $550 million of unissued senior secured notes, and at least $500 million of secured debt covenant capacity.
Outlook:
The Company reaffirms its full year 2022 revenue guidance to $3.4 – $3.5 billion and Adjusted EBITDA of negative $400 – $475 million. Consistent with previous reporting, guidance for full year 2022 excludes the impact of fluctuations from the Company’s original budgeted foreign exchange rates.
Source: We Work
Category: Investor Relations, Earnings
About WeWork
WeWork Inc. (NYSE: WE) was founded in 2010 with the vision to create environments where people and companies come together and do their best work. Since then, we’ve become the leading global flexible space provider committed to delivering technology-driven turnkey solutions, flexible spaces, and community experiences. For more information about WeWork, please visit us at wework.com.
