WeWork Reports Third Quarter 2022 Results

Revenue Increases 24% Year-over-Year

Extends Debt Maturity

NEW YORK, November 10, 2022 – WeWork Inc. (NYSE: WE) (“WeWork”), the leading global flexible space provider, disclosed financial results today for the three months ended September 30, 2022. Third quarter and other recent highlights include:

  • Revenue for the third quarter was $817 million, an increase of 24% year-over-year. Revenue using the Company’s budgeted foreign exchange rates was $868 million, an increase of 33% year-over-year.
  • Extended commitment for, and maturity date of, the $500 million Senior Secured Notes to March 2025.

“Our third quarter results illustrate how our disciplined and strategic approach to transforming our business and delivering holistic solutions for a new world of work are paying off. The long-term value of flexibility is clear and we remain focused on strengthening our business while navigating a volatile macroeconomic environment,” said Sandeep Mathrani, CEO and Chairman of WeWork. “As evidenced by our growth in revenue, reduced costs, optimized portfolio and reinforced balance sheet, we are leveraging all the tools at our disposal to continue executing against our goals.”

Third Quarter 2022 Consolidated Results

  • Revenue for the third quarter was $817 million, an increase of 24% year-over-year. Revenue using the Company’s budgeted foreign exchange rates was $868 million, an increase of 33% year-over-year.
  • Consolidated physical occupancy in the third quarter was 71%. Consolidated physical occupancy for mature buildings was 72%(1). Approximately 8,000 physical memberships and 7,000 workstations were added during the quarter.
  • Net loss for the third quarter was $629 million. Net loss includes approximately $430 million related to non-cash expenses(2).
  • Adjusted EBITDA was negative $105 million, a $251 million improvement year-over-year.

Company Debt Transaction:

The Company extended the commitment for, and the maturity date of, the $500 million Senior Secured Notes from February 2024 to March 2025, subject to terms and certain conditions. The Senior Secured Notes remained undrawn at the end of the third quarter.


  • Systemwide revenue was $943 million in the third quarter, a 21% increase year-over-year, making WeWork the largest co-working company in the world by revenue.
  • As of September 30, 2022, WeWork’s systemwide real estate portfolio consisted of 801 locations across 39 countries, supporting approximately 928,000 workstations and 671,000 physical memberships, equating to 72% physical occupancy, and an increase in physical memberships of 23% year-over-year.
  • Systemwide gross workstation sales totaled 205,000 in the third quarter, or the equivalent of 12.3 million square feet sold(3). Systemwide new workstation sales were 87,000 in the third quarter or the equivalent of 5.2 million square feet sold(3).
  • As of September 30, 2022, WeWork’s consolidated real estate portfolio consisted of 647 locations across 34 countries, which supported approximately 756,000 workstations and 536,000 physical memberships, equating to physical occupancy of 71%, and an increase in physical memberships of 24% year-over-year. Consolidated physical occupancy for mature buildings was 72%(1).
  • On a consolidated basis, gross workstation sales totaled 162,000 in the third quarter of 2022, which equates to approximately 9.7 million square feet sold(3). Consolidated new workstation sales were 68,000 in the third quarter or the equivalent of 4.1 million square feet sold(3).
  • Average revenue per physical member (“ARPM”) of $477. ARPM using the Company’s budgeted foreign exchange rates was $508, an increase of 6% year-over-year.

WeWork Access:

All Access and On-Demand consolidated memberships grew to 67,000 in the third quarter, an increase of 110% year-over-year. WeWork Access products generated $47 million of revenue in the third quarter, an increase of 135% year-over-year. Growth in All Access memberships yielded annual run rate revenue of approximately $185 million to $195 million.

WeWork Workplace:

In July, the Company launched its software solution, WeWork Workplace, to enable companies of all sizes to manage their space and workforce through one universal platform. Since its debut, over 100 companies have signed onto WeWork Workplace, comprising over 15,000 licenses.


WeWork ended the third quarter of 2022 with cash, commitments, and access to liquidity of approximately $1.5 billion. This includes approximately $460 millionof available cash and cash equivalents, $500 million of unissued Senior Secured Notes, and at least $500 million of secured debt covenant capacity.

Portfolio Optimization Update:

The Company continued its ongoing efforts to optimize and enhance its global real estate portfolio by executing deals for new locations and exiting underperforming assets. Systemwide, the Company entered into new management and revenue share agreements as well as traditional leases for over 20 new locations globally, comprising approximately 18,000 workstations, this year.

Subsequent to quarter end, the Company initiated plans to exit approximately 40 underperforming locations, comprised of approximately 41,000 workstations, in the U.S. that are mostly expected to occur in November. These closures are expected to reduce top-line revenue; however, they are expected to also reduce rent, tenancy and building operating expenses, and, once fully implemented, are expected to contribute approximately $140 million to annual Adjusted EBITDA.


The Company further streamlined its operations by reducing SG&A expense from approximately $800 million annually at the beginning of 2022 to a run rate of approximately $725 million annually.

The Company expects its fourth quarter revenue to be $870 million to $890 million, Adjusted EBITDA to be $(65 million) to $(85 million) and Adjusted EBITDA Attributable to WeWork, to be $(55 million) to $(75 million).

The Company expects full year revenue to be $3.35 billion to $3.37 billion, Adjusted EBITDA to be $(515 million) to $(535 million) and Adjusted EBITDA Attributable to WeWork, to be $(435 million) to $(455 million).

The guidance for revenue excludes the impact of fluctuations in foreign currency exchange rates from the Company’s original budgeted foreign currency exchange rates. The guidance for Adjusted EBITDA is based on spot foreign currency exchange rates.

The Company’s fourth quarter and full year guidance was impacted primarily by slower than expected growth in its operations in the USC and Japan regions, the impact of planned building exits and fluctuations in certain foreign currencies.


Source: We Work

Category: Investor Relations, Earnings


Kevin Berry




Nicole Sizemore


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.

Forward-Looking Statements

Certain statements made in this press release may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “pipeline,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Although WeWork believes the expectations reflected in any forward-looking statement are based on reasonable assumptions, it can give no assurance that its expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks, uncertainties and other factors. Such factors include, but are not limited to, WeWork’s ability to refinance, extend, restructure or repay outstanding debt; its outstanding indebtedness; its ability to raise capital through equity issuances, asset sales or the incurrence of debt; retail and credit market conditions; impairments; its current and projected liquidity needs; changes in general economic conditions, including as a result of the COVID-19 pandemic and the conflict in Ukraine; our expectations regarding our exits of underperforming locations, including the timing of any such exits and our ability to retain our members; delays in customers and prospective customers returning to the office and taking occupancy as a result of the COVID-19 pandemic and the emergence of variants leading to a parallel delay in receiving the corresponding revenue; the impact of foreign exchange rates on WeWork’s financial performance; and WeWork’s inability to implement its business plan or meet or exceed its financial projections. Forward-looking statements speak only as of the date they are made. WeWork discusses these and other risks and uncertainties in its annual and quarterly periodic reports and other documents filed with the U.S. Securities and Exchange Commission. WeWork undertakes no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise, except as required by law.

Use of Non-GAAP Financial Measures

This press release includes certain financial measures not presented in accordance with generally accepted accounting principles in the United States (“GAAP”): Adjusted EBITDA, Free Cash Flow, and non-GAAP financial measures of foreign exchange (including on a forward-looking basis). These financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing our financial results. Therefore, these measures should not be considered in isolation or as an alternative to net loss or other measures of profitability, liquidity or performance under GAAP. You should be aware that WeWork’s presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently. WeWork believes that these non-GAAP measures of financial results (including on a forward-looking basis) provide useful supplemental information to investors about WeWork. WeWork’s management uses forward-looking non-GAAP measures to evaluate WeWork’s projected financials and operating performance. Additionally, to the extent that forward-looking non-GAAP financial measures are provided, they are presented on a non-GAAP basis without reconciliations of such forward-looking non-GAAP measures due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations.

Non-GAAP Financial Definitions

Adjusted Earnings Before Interest Expense, Income Tax, Depreciation, and Amortization (“Adjusted EBITDA”)

We supplement our GAAP results by evaluating Adjusted EBITDA, a non-GAAP measure. We define “Adjusted EBITDA” as net loss before income tax (benefit) provision, interest and other (income) expense, depreciation and amortization expense, stock-based compensation expense, expense related to stock-based payments for services rendered by consultants, income or expense relating to the changes in fair value of assets and liabilities remeasured to fair value on a recurring basis, expense related to costs associated with mergers, acquisitions, divestitures and capital raising activities, legal, tax and regulatory reserves or settlements, significant legal costs incurred by WeWork in connection with regulatory investigations and litigation regarding WeWork’s 2019 withdrawn initial public offering and the related execution of the SoftBank Transactions, as defined in Note 1 of the Notes to the Consolidated Financial Statements included in our Quarterly Report for the quarter ended September 30, 2022, net of any insurance or other recoveries, significant non-ordinary course asset impairment charges and, to the extent applicable, any impact of discontinued operations, restructuring charges, and other gains and losses on operating assets.

Adjusted EBITDA Attributable to WeWork

We also supplement our GAAP results by evaluating Adjusted EBITDA Attributable to WeWork, a non-GAAP measure. We define Adjusted EBITDA Attributable to WeWork as Adjusted EBITDA excluding noncontrolling interest stakes in JapanCo, LatamCo and other subsidiaries and including WeWork’s share of Adjusted EBITDA from unconsolidated investments.

Free Cash Flow

We also supplement our GAAP results by evaluating Free Cash Flow, a non-GAAP measure. Free Cash Flow is defined as net cash provided by (used in) operating activities less purchases of property, equipment and capitalized software, each as presented in the Company’s condensed consolidated statements of cash flows and calculated in accordance with GAAP. Free Cash Flow is both a performance measure and a liquidity measure that we believe provides useful information to management and investors about the amount of cash generated by or used in the business. Free Cash Flow is also a key metric used internally by our management to develop internal budgets, forecasts, and performance targets.

Non-GAAP Financial Measures of Foreign Exchange

We supplement our GAAP financial results by evaluating our performance excluding

the effect of foreign exchange, or by assessing our performance using the foreign

exchange rates that we used to calculate certain forward-looking financial

information, to facilitate period over period comparisons. We believe that the disclosure of our financial results on a budgeted foreign exchange basis is a useful supplemental measure of operating performance because it facilitates comparison of our current performance to our guidance provided by excluding the effects of foreign currency volatility.  We calculate our budgeted foreign exchange results by translating the current quarter functional currency results at our budgeted foreign exchange rate, which is an estimated forward rate for each of our functional currencies determined during the fourth quarter of the prior fiscal year as part of our annual budgeting process. The presentation of financial results on a budgeted foreign exchange basis should be considered in addition to, but not a substitute for, measures of financial performance reported in accordance with U.S. GAAP.

Preliminary Financial Information

We report our financial results in accordance with U.S. generally accepted accounting principles. All projected financial information and metrics in this press release are preliminary. These estimates are not a comprehensive statement of our financial position and results of operations. There is no assurance that we will achieve our forecasted results within the relevant period or otherwise. Additionally, the timing of the approximately 40 planned building exits and the member retention rate set forth in this press release are estimates. It is possible that all of these planned exits do not occur during the fourth quarter of 2022, or at all.

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