US: WeWork’s occupancy reached 72 per cent in Q2 2022, but losses rose to $635 million.
This is the first time the company’s quarterly losses have gone up since its IPO in October last year.
WeWork recorded $815 million in revenue in Q2, up seven per cent from Q1, according to its earnings report released yesterday. Occupancy reached 72 per cent, the highest since the pandemic began.
WeWork’s Q2 losses of $635 million, compared with $504 million in Q1, bring H2 losses to $1.139 billion.
The Q2 losses were still 31 per cent less than the $923 million recorded in Q2 2021.
CEO and chairman Sandeep Mathrani said: “We have been steadily selling desks and growing our base for well over a year because companies have needed a way to quickly adapt to a new and unknown environment. In the face of inflation and recessionary pressures, not only does that need exist, but on top of that, companies need a solution that can help reduce costs and future-proof workplace strategies.”
Despite the losses, WeWork continued to add memberships which were up five per cent from Q1 to 658,000 members. It sold 73,000 new desks — single-person office spaces — compared to the 83,000 it sold in Q1. Its average lease term ranged from 14 months for small- to medium-sized businesses to 25 months for its enterprise clients.
WeWork moved into the office software market in July and partnered with Yardi Systems to launch WeWork Workplace, a platform that allows companies to manage their office space in a similar way to how WeWork does for its premises.
