WeWork Revenue Up 18% In Q4, But Losses Persist
WeWork revenue for the fourth quarter of 2022 was $848M, an increase of 18% compared with the same quarter a year earlier, the company reported Thursday, though it also recorded a net loss of $527M for the quarter. In Q4 2021, the company lost $803M.
For all of 2022, the company lost nearly $2.3B, an improvement from 2021, when it lost about $4.6B. Revenue for 2022 came in at $3.2B, up from $2.5B in 2021.
WeWork also managed to achieve “adjusted EBITDA profitability in December,” it said, representing the first month in the company's history that it did so, though it didn't cite a monthly number in its filing with the Securities and Exchange Commission.
The company's EBITDA for Q4 2022 was a loss of $26M, a substantial improvement from the same quarter in 2021, when it was a loss of $477M. WeWork says it might break even in EBITDA terms during the first quarter of this year.
EBITDA refers to earnings before interest, taxes, depreciation and amortization, and while it is often cited as a metric of corporate profitability, it is not recognized by Generally Accepted Accounting Principals or International Financial Reporting Standards.
In January, WeWork announced 300 jobs cuts globally in an effort to trim costs, primarily at underperforming locations. In November, the company said it would spend about $200M in 2023 to close 40 locations worldwide.
At the end of 2022, WeWork's consolidated real estate portfolio totaled 622 locations in 34 countries, with about 731,000 workstations and 547,000 physical memberships. Occupancy at its locations is about 75%, according to the company.
WeWork stock dipped about 4.3% on Thursday morning. Compared with a year ago, it is down 76.7%, which can be partially attributed to overall fluctuations in the stock market.