NEW YORK–(BUSINESS WIRE)–WeWork Inc. (NYSE: WE), the leading global flexible space provider, disclosed financial results today for the three months ended March 31, 2023. First quarter and other recent highlights include:
- The Company’s Free Cash Flow during the first quarter 2023 of $(343) million was $18 million better than its projection of $(361) million made in connection with its Debt Restructuring Transaction.
- The Company completed its previously announced debt restructuring that resulted in new funding and new and rolled capital commitments of over $1 billion, reduced total debt and annual cash-basis interest expense by approximately $1.2 billion and $90 million, respectively.
- Consolidated revenue for the first quarter was $849 million, an increase of 11% year-over-year.
- Net loss was $(299) million, a $205 million improvement year-over-year. Net loss attributable to WeWork Inc. was $(264) million, a $171 million improvement year-over-year.
- Adjusted EBITDA was $(29) million, a $183 million improvement year-over-year; Adjusted EBITDA attributable to WeWork Inc. was $(17) million, a $169 million improvement year-over-year.
- All Access consolidated memberships grew to approximately 75,000 in the first quarter, an increase of 36% year-over-year.
- Consolidated physical occupancy was 73% at the end of the first quarter 2023, an increase from 67% at the end of the first quarter 2022.
“Over the past quarter we’ve continued to improve the fundamentals of our business while working to meet the needs of current and future members who seek turnkey, cost-efficient solutions for their office needs,” said Sandeep Mathrani, CEO and Chairman of WeWork. “The slight decline in memberships was a function of known enterprise client churn, the closure of some of our locations and the franchising of our South Africa business. April saw a reversal in enterprise demand resulting in USC’s first positive net sales month in twelve months.”
“Critically, following our debt restructuring, we now have a strengthened balance sheet and liquidity position that gives us the runway to deliver against our plan,” continued Mathrani. “Our debt restructuring was backed by a large majority of bondholders and investors, demonstrating their conviction in the WeWork business model and our future.”
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(Amounts in millions, except percentages) |
Three Months Ended |
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Actual |
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Constant |
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2023 |
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|
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2022 |
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currency |
|
currency |
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|
Systemwide Revenue |
$ |
976 |
|
|
$ |
896 |
|
|
9% |
|
13% |
|
Consolidated Revenue |
|
849 |
|
|
|
765 |
|
|
11% |
|
15% |
|
Net loss |
|
(299 |
) |
|
|
(504 |
) |
|
|
|
|
|
Net loss attributable to WeWork Inc. |
|
(264 |
) |
|
|
(435 |
) |
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|
|
|
|
Adjusted EBITDA(1) |
|
(29 |
) |
|
|
(212 |
) |
|
|
|
|
|
Adjusted EBITDA attributable to WeWork Inc.(1) |
|
(17 |
) |
|
|
(186 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
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(1) Adjusted EBITDA and Adjusted EBITDA attributable to WeWork Inc. are non-GAAP measures. See Appendix for reconciliation and other information.
Space-as-a-Service:
- As of March 31, 2023, WeWork’s systemwide real estate portfolio consisted of 781 locations across 39 countries, supporting approximately 904,000 workstations and 664,000 physical memberships, equating to 73% physical occupancy, and an increase in physical memberships of 6% year-over-year.
- Systemwide gross workstation sales totaled 177,000 in the first quarter, or the equivalent of 10.6 million square feet sold(2). Systemwide new workstation sales were 66,000 in the first quarter or the equivalent of 4.0 million square feet sold(2).
- As of March 31, 2023, WeWork’s consolidated real estate portfolio consisted of 617 locations across 33 countries, which supported approximately 720,000 workstations and 527,000 physical memberships, equating to physical occupancy of 73%, and an increase in physical memberships of 5% year-over-year.
- On a consolidated basis, gross workstation sales totaled 137,000 in the first quarter of 2023, which equates to approximately 8.2 million square feet sold(2). Consolidated new workstation sales were 51,000 in the first quarter, or the equivalent of 3.0 million square feet sold(2).
- Average revenue per physical member (“ARPM”) was $490 in the first quarter of 2023, an increase of 1% from the first quarter 2022.
WeWork Access:
All Access consolidated memberships grew to approximately 75,000 in the first quarter, an increase of 36% year-over-year.
WeWork Workplace:
As of the end of the first quarter 2023, over 370 companies have signed onto WeWork Workplace, comprising over 63,000 licenses sold.
Outlook:
The Company expects its second quarter 2023 revenue to be $840 million to $865 million and Adjusted EBITDA to be $(10 million) to $15 million. The Company expects its available cash and cash equivalents at the end of the second quarter to be consistent with or slightly better than projections provided with its Debt Restructuring Transaction.
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.
