WeWork Reports First Quarter 2022 Results, Exceeding Revenue Guidance

NEW YORK, May 12, 2022 – WeWork Inc. (NYSE: WE) (“WeWork”), a leading global flexible space provider, disclosed financial results for its first quarter today. 

  • Revenue in the first quarter of 2022 was $765 million, an increase of 7% quarter-over-quarter and 28% year-over-year, exceeding the Company’s previous revenue guidance of $740 – 760 million. 
  • The Company enhanced its liquidity profile through a $350 million Junior LC Tranche backed by Brookfield Asset Management and its affiliates as part of the amended LC facility. 
  • The Company tightened the range of guidance for second quarter 2022, to $800 – 825 million from $775 – 825 million announced previously.

“Our first quarter results underscore the long-term value of WeWork’s holistic offerings that are tailored to a new era for the office market. Having built a more sound and disciplined operating model, WeWork is well-positioned to capture demand, grow occupancy, and achieve revenue goals established at the beginning of 2022,” said Sandeep Mathrani, CEO and Chairman of WeWork. “As evidenced by our recently announced partnership with Yardi, WeWork can be a solution for optimizing space utilization in a flexible hybrid work environment.”

Company Operating Results 

  • As of March 31, 2022, WeWork’s systemwide real estate portfolio consisted of 765 locations across 38 countries, supporting approximately 916,000 workstations and 626,000 physical memberships, an increase of 6% quarter-over-quarter and 32% year-over-year.
  • As of March 31, 2022, WeWork’s consolidated real estate portfolio consisted of 633 locations and 33 countries, which supported approximately 746,000 workstations and 501,000 physical memberships. The growth in consolidated physical memberships represents a 7% quarter-over-quarter increase and 37% year-over-year increase across consolidated regions as currently reported.
  • Systemwide gross desk sales totaled 211,000 in the first quarter, or the equivalent of 12.7 million square feet sold. Systemwide new desk sales were 106,000 in the first quarter equating to 6.3 million square feet sold.
  • On a consolidated basis, gross desk sales were the highest reported since the pandemic began in the first quarter of 2020, with 166,000 desks sold in the first quarter of 2022, which equates to approximately 10.0 million square feet sold. Consolidated new desk sales were 83,000 in the first quarter equating to 5.0 million square feet sold.
  • Consolidated physical occupancy was 67% as of the end of the first quarter, a 4 percentage point increase from the fourth quarter of 2021. WeWork’s physical occupancy including signed but not occupied memberships totaled 70% at the end of the quarter, a 4 percentage point increase from the prior quarter.
  • All Access memberships increased to 55,000 by the close of the first quarter, an increase of 22% quarter-over-quarter. These All Access memberships represent an incremental 7 percentage points of occupancy.

Company Consolidated Financial Results

  • First quarter 2022 revenue was $765 million, representing a 7% quarter-over-quarter increase and a 28% year-over-year increase. 
  • Net Loss was $504 million in the first quarter of 2022, a 37% improvement relative to the fourth quarter of 2021. Net loss includes $147 million of interest and other (income) expense, a gain of $130 million driven primarily by lease terminations, impairment of $91 million driven primarily by building exits, depreciation and amortization of $171 million, and stock-based compensation of $13 million, which are excluded from Adjusted EBITDA.
  • Adjusted EBITDA was negative $212 million, a $71 million improvement from the fourth quarter of 2021 and a $234 million improvement relative to the first quarter of 2021. 
  • First quarter 2022 Operating Cash Flow was negative $338 million and Free Cash Flow was negative $412 million.


Following trends in 2021, WeWork captured a significant share of market demand in its top markets as it closed the quarter with the highest gross sales since the first quarter of 2020. WeWork’s footprints represented approximately 0.5% of all commercial office space in both the United States and European markets, yet sold the equivalent of 9% and 10%, respectively, of total square feet leased in the quarter.

At the market-level, WeWork’s first quarter 2022 gross sales in Manhattan and San Francisco were equivalent to 17% of traditional office market leasing on a square-foot basis, while WeWork’s portfolios of 5 million square feet and 2 million square feet, respectively, account for approximately 1% of total office stock. WeWork’s leasing activity represented 25% of Boston’s leasing and 8% of Miami’s leasing, despite representing 2% or less of the total office stock in each of those markets. WeWork’s gross sales equated to 39% of London’s traditional office leasing, a market that is leading the shift to flex, 13% of Dublin’s leasing, 8% of Paris’ leasing and 15% of Berlin’s leasing, despite representing approximately 1% or less of total office stock in each market.

In the first quarter of 2022, WeWork reported an average revenue per physical member (“ARPM”) of $484, which was unchanged as compared to the prior quarter. 

WeWork Access: 

All Access memberships grew to 55,000 memberships as of March 31, 2022, an increase of 22% quarter-over-quarter. As of the first quarter, All Access ARPM was $235, yielding an annual run-rate revenue of $155 million as of March. 

WeWork Workplace: 

In April, WeWork announced a new partnership with Yardi, a leading provider of real estate software to landlords, institutional investors and property owner-operators, that will enhance WeWork Workplace’s capabilities and accelerate the product’s speed to market. The partnership will merge Yardi’s industry-leading property management and enterprise resource planning software and tech capabilities with WeWork Workplace’s booking capabilities to create a universal platform designed to enable companies to optimize space across their portfolio and manage hybrid work models. Through this enhanced WeWork Workplace product, expected to launch commercially in July 2022, companies will be able to offer their employees the ability to seamlessly book a desk, private office or conference room across their real estate portfolio – whether at a WeWork location or company-leased or owned space. 


WeWork ended the first quarter of 2022 with approximately $1.6 billion in cash and commitments. This includes approximately $519 million of available cash on hand, $550 million of Senior Secured notes that we can issue and $550 million of capacity under our letter of credit facility.

Amendment of Existing Letter of Credit Facility: 

WeWork also enhanced its liquidity profile through an amendment of the Company’s existing letter of credit facility, which was subdivided into a $350 million Junior LC Tranche and a $1.25 billion Senior LC Tranche earlier in May. Brookfield Asset Management and its affiliates purchased all participations under the Junior LC Tranche. The letter of credit under the Junior LC Tranche gave WeWork immediate access to $350 million for general corporate purposes through November 2023.  This transaction enhances the Company’s liquidity profile. 


WeWork updated second quarter 2022 revenue guidance to $800 – 825 million, tightening the previous range of $775 – 825 million, and announced second quarter Adjusted EBITDA guidance of negative $125 to negative $175 million. The Company also updated its full year 2022 revenue guidance to $3.40 – 3.50 billion, a tightening of the $3.35 – 3.50 billion range previously provided, and updated full year 2022 Adjusted EBITDA guidance to negative $400 to negative $475 million, from negative $400 to negative $500 million provided previously. The Company’s guidance for the rest of the year excludes the impact of foreign exchange rate fluctuations.

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 one of the leading global flexible space providers 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 near and intermediate term debt; its indebtedness; its ability to raise capital through equity issuances, asset sales or the incurrence of new debt; retail and credit market conditions; impairments; its liquidity demand; changes in general economic conditions, including as a result of the COVID-19 pandemic; 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; 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 may update that discussion in its periodic reports, but otherwise takes no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise. 

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 and Free Cash Flow (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 March 31, 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. 

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.