WeWork Reports Fourth Quarter and Fiscal Year 2021 Financial Results
WeWork Inc. (NYSE: WE) reported its Q4 2021 results, achieving total revenue of $718 million, up 9% from Q3 2021. Occupancy increased to 66% due to growth in physical memberships and All Access memberships rising by 41%. However, the company faced a net loss of $803 million, albeit with a 5% improvement from the previous quarter. For 2022, WeWork expects revenue between $3.35 and $3.5 billion, with hopes of reaching Adjusted EBITDA positivity in Q3 and Q4.
- Total revenue of $718 million in Q4 2021, a 9% increase from Q3.
- Occupancy rate rose to 66%, up from 60% in Q3.
- All Access memberships grew by 41% quarter-over-quarter.
- Q4 2021 operating cash flow improved by $73 million compared to Q3.
- Net loss of $803 million in Q4 2021, despite a 5% improvement.
- Operating cash flow was negative $373 million.
- Free cash flow was negative $467 million.
- For fiscal year 2021, consolidated gross desk sales totaled 593,000, the equivalent of 35.6 million square feet.
-
Total revenue for the fourth quarter 2021 was
$718 million $57 million -
Occupancy in the fourth quarter 2021 increased 6 points quarter-over-quarter to
66% , including sold but not yet occupied memberships.
Company Operating Results
-
As of
December 31, 2021 ,WeWork's systemwide real estate portfolio consisted of 756 locations across 38 countries, supporting approximately 912,000 workstations and 590,000 physical memberships. -
As of
December 31, 2021 , WeWork’s consolidated real estate portfolio included 624 locations across 33 countries, supporting approximately 746,000 workstations and 469,000 physical memberships. - Systemwide gross desk sales totaled 217,000 in the fourth quarter 2021, equating to 13.0 million square feet sold. Consolidated gross desk sales totaled 164,000 in the fourth quarter, equating to 9.9 million square feet sold. Consolidated new desk sales totaled 87,000 in the fourth quarter.
-
Physical occupancy continued to trend upwards to
63% as of year-end 2021. Physical occupancy including signed but not yet occupied memberships was66% as of year-end 2021, up from60% at the end of the third quarter 2021. -
The average revenue per member (ARPM) for physical memberships was
$484 $485 -
All Access memberships increased to 45,000 by the close of the fourth quarter, an increase of
41% quarter-over-quarter. These All Access memberships represent an incremental 6 percentage points in occupancy.
Company Consolidated Financial Results
-
Fourth quarter 2021 revenue was
$718 million 9% increase from$661 million -
Fourth quarter 2021 Operating Cash Flow was negative
$373 million $467 million -
Net Loss was
$803 million 5% improvement relative to the third quarter 2021. Net loss net of$103 million $48 million $241 million $174 million $48 million $2 million $283 million -
Adjusted EBITDA was negative
$283 million $73 million $189 million
Space-as-a-Service:
Across the Company’s European markets,
WeWork Access:
All Access represented 45,000 memberships as of
WeWork Workplace:
In
Business Development:
In line with that approach,
In
Liquidity:
Outlook:
About
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
Use of Non-GAAP Financial Measures
This press release includes certain financial measures not presented in accordance with generally accepted accounting principles in
Non-GAAP Financial Definitions
Adjusted Earnings Before Interest Expense, Income Tax, Depreciation, and Amortization (“Adjusted EBITDA”)
We also 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
Free Cash Flow
We also supplement our GAAP results by evaluating Free Cash Flow, a non-GAAP measure. Free Cash Flow is defined as cash flow from operating activities less cash purchases of property and equipment, each as presented in
|
||||||||
|
||||||||
(Amounts in thousands, except share and per share amounts) |
2021 |
2020 |
||||||
Assets |
|
|
||||||
Current assets: |
|
|
||||||
Cash and cash equivalents |
$ |
923,725 |
|
$ |
800,535 |
|
||
Accounts receivable and accrued revenue, net of allowance of |
|
129,943 |
|
|
176,521 |
|
||
| Prepaid expenses (including related party amounts of |
|
179,666 |
|
|
162,843 |
|
||
| Other current assets (including related party amounts of |
|
238,109 |
|
|
189,329 |
|
||
Total current assets |
|
1,471,443 |
|
|
1,329,228 |
|
||
Property and equipment, net |
|
5,374,225 |
|
|
6,859,163 |
|
||
Lease right-of-use assets, net |
|
13,052,091 |
|
|
15,107,880 |
|
||
Restricted cash |
|
11,274 |
|
|
53,618 |
|
||
Equity method and other investments |
|
199,577 |
|
|
214,940 |
|
||
|
|
677,334 |
|
|
679,351 |
|
||
Intangible assets, net |
|
56,729 |
|
|
49,896 |
|
||
| Other assets (including related party amounts of |
|
913,498 |
|
|
1,062,258 |
|
||
| Total assets | $ |
21,756,171 |
|
$ |
25,356,334 |
|
||
| Liabilities | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses (including amounts due to related parties of |
$ |
621,090 |
|
$ |
723,411 |
|
||
| Members’ service retainers |
|
420,908 |
|
|
358,566 |
|
||
| Deferred revenue (including amounts from related parties of |
|
119,767 |
|
|
176,004 |
|
||
| Current lease obligations (including amounts due to related parties of |
893,067 |
847,531 |
||||||
| Other current liabilities (including amounts due to related parties of none and |
|
77,913 |
|
|
83,755 |
|
||
| Total current liabilities |
|
2,132,745 |
|
|
2,189,267 |
|
||
| Long-term lease obligations (including amounts due to related parties of |
|
17,925,626 |
|
|
20,263,606 |
|
||
| Unsecured notes payable (including amounts due to related parties of |
|
2,200,000 |
|
|
1,200,000 |
|
||
| Warrant liabilities, net (including convertible related party liabilities, net of none and |
|
15,547 |
|
|
418,908 |
|
||
| Long-term debt, net |
|
665,598 |
|
|
688,356 |
|
||
| Other liabilities |
|
230,097 |
|
|
221,780 |
|
||
| Total liabilities |
|
23,169,613 |
|
|
24,981,917 |
|
||
| Commitments and contingencies (Note 23) | ||||||||
| Convertible preferred stock; no shares authorized, issued and outstanding as of |
— |
|
7,666,098 |
|
||||
| Redeemable noncontrolling interests |
|
35,997 |
|
|
380,242 |
|
||
|
||||||||
| (Amounts in thousands, except share and per share amounts) |
|
|
||||||
| Equity | ||||||||
| Preferred stock; par value |
— |
|
— |
|
||||
| Common stock Class A; par value |
|
71 |
|
|
3 |
|
||
| Common stock Class B; par value |
— |
11 |
||||||
| Common stock Class C; par value |
2 |
2 |
||||||
| Common stock Class D; par value |
— |
|
— |
|
||||
|
(29,245 |
) |
— |
|||||
| Additional paid-in capital |
|
12,320,691 |
|
|
2,188,499 |
|
||
| Accumulated other comprehensive income (loss) |
|
(31,069 |
) |
|
(158,810 |
) |
||
| Accumulated deficit |
|
(14,142,517 |
) |
|
(9,703,490 |
) |
||
|
(1,882,067 |
) |
|
(7,673,785 |
) |
|||
| Noncontrolling interests |
|
432,628 |
|
|
1,862 |
|
||
| Total equity |
|
(1,449,439 |
) |
|
(7,671,923 |
) |
||
| Total liabilities and equity | $ |
21,756,171 |
|
$ |
25,356,334 |
|
||
The accompanying notes are an integral part of these consolidated financial statements.
|
|||||||||||||
Year Ended |
|||||||||||||
(Amounts in thousands, except share and per share data) |
2021 |
2020 |
2019 |
||||||||||
| Revenue (including related party revenue of |
$ |
2,570,127 |
|
$ |
3,415,865 |
|
$ |
3,458,592 |
|
||||
| Expenses: | |||||||||||||
Location operating expenses—cost of revenue (exclusive of depreciation and amortization of |
|
3,084,646 |
|
|
3,542,918 |
|
|
2,758,318 |
|
||||
Pre-opening location expenses |
|
159,096 |
|
|
273,049 |
|
|
571,968 |
|
||||
Selling, general and administrative expenses |
|
1,010,582 |
|
|
1,604,669 |
|
|
2,793,663 |
|
||||
Restructuring and other related costs |
|
433,811 |
|
|
206,703 |
|
|
329,221 |
|
||||
Impairment/(gain on sale) of goodwill, intangibles and other assets |
|
870,002 |
|
|
1,355,921 |
|
|
335,006 |
|
||||
Depreciation and amortization |
|
709,473 |
|
|
779,368 |
|
|
589,914 |
|
||||
Total expenses (including related party expenses of |
|
6,267,610 |
|
|
7,762,628 |
|
|
7,378,090 |
|
||||
Loss from operations |
|
(3,697,483 |
) |
|
(4,346,763 |
) |
|
(3,919,498 |
) |
||||
Interest and other income (expense), net: |
|
|
|
||||||||||
Income (loss) from equity method and other investments |
|
(18,333 |
) |
|
(44,788 |
) |
|
(32,206 |
) |
||||
Interest expense (including related party expenses of |
|
(454,703 |
) |
|
(331,217 |
) |
|
(99,587 |
) |
||||
Interest income |
|
18,973 |
|
|
16,910 |
|
|
53,244 |
|
||||
Foreign currency gain (loss) |
|
(133,646 |
) |
|
149,196 |
|
|
29,652 |
|
||||
Gain (loss) from change in fair value of warrant liabilities (including from related party financial instruments of |
(342,939 |
) |
819,647 |
239,145 |
|||||||||
Loss on extinguishment of debt |
|
— |
|
|
(77,336 |
) |
|
— |
|
||||
Total interest and other income (expense), net |
|
(930,648 |
) |
|
532,412 |
|
|
190,248 |
|
||||
| Pre-tax loss | (4,628,131 |
) |
(3,814,351 |
) | (3,729,250 |
) |
|||||||
Income tax benefit (provision) |
(3,464 |
) |
(19,506 |
) |
(45,637 |
) |
|||||||
| Net loss | (4,631,595 |
) | (3,833,857 |
) | (3,774,887 |
) | |||||||
| Net loss attributable to noncontrolling interests: | |||||||||||||
| Redeemable noncontrolling interests — mezzanine | 139,083 |
675,631 |
493,047 |
||||||||||
| Noncontrolling interest — equity | 53,485 |
28,868 |
17,102 |
||||||||||
| Net loss attributable to |
$ | (4,439,027 |
) | $ | (3,129,358 |
) | $ | (3,264,738 |
) | ||||
| Net loss per share attributable to Class A and Class B common stockholders (see Note 22): | |||||||||||||
| Basic | $ | (18.38 |
) | $ | (22.24 |
) | $ | (23.46 |
) | ||||
| Diluted | $ | (18.38 |
) | $ | (22.24 |
) | $ | (23.46 |
) | ||||
| Weighted-average shares used to compute net loss per share attributable to Class A and Class B common stockholders, basic and diluted | 263,584,930 |
140,680,131 |
139,160,229 |
||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
|
||||||||||||
|
Year Ended
|
|||||||||||
(Amounts in thousands) |
2021 |
2020 |
2019 |
|||||||||
Cash Flows from Operating Activities: |
|
|
||||||||||
Net loss |
$ |
(4,631,595 |
) |
$ |
(3,833,857 |
) |
$ |
(3,774,887 |
) |
|||
Adjustments to reconcile net loss to net cash from operating activities: |
|
|
||||||||||
Depreciation and amortization |
|
709,473 |
|
|
779,368 |
|
|
589,914 |
|
|||
Impairment of property and equipment |
|
— |
|
|
3,066 |
|
|
63,128 |
|
|||
Impairment/(gain on sale) of goodwill, intangibles and other assets |
|
870,002 |
|
|
1,355,921 |
|
|
335,006 |
|
|||
Non-cash transaction with principal shareholder |
|
428,289 |
|
|
— |
|
|
185,000 |
|
|||
Loss on extinguishment of debt |
|
— |
|
|
77,336 |
|
|
— |
|
|||
Stock-based compensation expense |
|
213,669 |
|
|
62,776 |
|
|
358,969 |
|
|||
Cash paid to settle employee stock awards |
|
— |
|
|
(3,141 |
) |
|
— |
|
|||
Issuance of stock for services rendered, net of forfeitures |
|
(2,271 |
) |
|
7,893 |
|
|
20,367 |
|
|||
Non-cash interest expense |
|
209,907 |
|
|
172,112 |
|
|
14,917 |
|
|||
Provision for allowance for doubtful accounts |
|
15,147 |
|
|
67,482 |
|
|
22,221 |
|
|||
(Income) loss from equity method and other investments |
|
18,333 |
|
|
44,788 |
|
|
32,206 |
|
|||
Distribution of income from equity method and other investments |
|
3,328 |
|
|
4,191 |
|
|
— |
|
|||
Foreign currency (gain) loss |
|
133,646 |
|
|
(149,196 |
) |
|
(30,915 |
) |
|||
Change in fair value of financial instruments |
|
342,939 |
|
|
(819,647 |
) |
|
(239,145 |
) |
|||
Contingent consideration fair market value adjustment |
|
— |
|
|
(122 |
) |
|
(60,667 |
) |
|||
Changes in operating assets and liabilities: |
||||||||||||
Operating lease right-of-use assets |
|
1,450,202 |
|
|
1,024,709 |
|
|
(5,850,744 |
) |
|||
Current and long-term lease obligations |
|
(1,606,650 |
) |
|
502,025 |
|
|
7,672,358 |
|
|||
Accounts receivable and accrued revenue |
|
23,485 |
|
|
(32,749 |
) |
|
(175,262 |
) |
|||
Other assets |
|
(76,452 |
) |
|
(28,148 |
) |
|
(126,870 |
) |
|||
Accounts payable and accrued expenses |
|
67,816 |
|
|
(164,190 |
) |
|
390,609 |
|
|||
Deferred revenue |
|
(52,695 |
) |
|
32,803 |
|
|
90,445 |
|
|||
Other liabilities |
|
(30,295 |
) |
|
39,731 |
|
|
38,840 |
|
|||
Deferred income taxes |
|
1,785 |
|
|
(159 |
) |
|
(3,734 |
) |
|||
Net cash provided by (used in) operating activities |
|
(1,911,937 |
) |
|
(857,008 |
) |
|
(448,244 |
) |
|||
| Cash Flows from Investing Activities: | ||||||||||||
Purchases of property and equipment |
|
(296,895 |
) |
|
(1,441,232 |
) |
|
(3,488,086 |
) |
|||
Capitalized software |
|
(39,997 |
) |
|
(22,614 |
) |
|
(40,735 |
) |
|||
| Change in security deposits with landlords |
|
2,526 |
|
|
526 |
|
|
(140,071 |
) |
|||
| Proceeds from asset divestitures and sale of investments, net of cash divested |
|
10,832 |
|
|
1,172,860 |
|
|
16,599 |
|
|||
Contributions to investments |
|
(26,704 |
) |
|
(99,146 |
) |
|
(80,674 |
) |
|||
Loans to employees and related parties |
|
— |
|
|
— |
|
|
(5,580 |
) |
|||
Cash used for acquisitions, net of cash acquired |
|
— |
|
|
— |
|
|
(1,036,973 |
) |
|||
Deconsolidation of cash of ChinaCo, net of cash received |
|
— |
|
|
(54,481 |
) |
|
— |
|
|||
Proceeds from repayment of notes receivable |
|
3,000 |
|
|
— |
|
|
— |
|
|||
| Net cash provided by (used in) investing activities | (347,238 |
) | (444,087 |
) | (4,775,520 |
) | ||||||
|
||||||||||||
Year Ended
|
||||||||||||
| (Amounts in thousands) | 2021 |
2020 |
2019 |
|||||||||
| Cash Flows from Financing Activities: | ||||||||||||
| Proceeds from Business Combination and PIPE financing, net of issuance costs paid |
|
1,209,068 |
|
|
— |
|
|
— |
|
|||
| Taxes paid on withholding shares |
|
(32,542 |
) |
|
— |
|
|
— |
|
|||
| Principal payments for property and equipment acquired under finance leases |
|
(4,626 |
) |
|
(4,021 |
) |
|
(3,590 |
) |
|||
| Proceeds from unsecured related party debt |
|
1,000,000 |
|
|
1,200,000 |
|
|
— |
|
|||
| Proceeds from issuance of convertible related party liabilities |
|
— |
|
|
— |
|
|
4,000,000 |
|
|||
| Proceeds from issuance of debt |
|
708,177 |
|
|
34,309 |
|
|
662,395 |
|
|||
| Repayments of debt |
|
(712,746 |
) |
|
(813,140 |
) |
|
(3,088 |
) |
|||
| Bond repurchase |
|
— |
|
|
— |
|
|
(32,352 |
) |
|||
| Debt and equity issuance costs |
|
(12,091 |
) |
|
(12,039 |
) |
|
(71,075 |
) |
|||
| Proceeds from exercise of stock options and warrants |
|
17,037 |
|
|
212 |
|
|
38,823 |
|
|||
| Proceeds from issuance of noncontrolling interests |
|
80,006 |
|
|
100,628 |
|
|
538,934 |
|
|||
| Distributions to noncontrolling interests |
|
— |
|
|
(319,860 |
) |
|
(40,000 |
) |
|||
| Payments for contingent consideration and holdback of acquisition proceeds |
|
(2,523 |
) |
|
(39,701 |
) |
|
(38,280 |
) |
|||
| Proceeds relating to contingent consideration and holdbacks of |
|
12,177 |
|
|
613 |
|
|
— |
|
|||
| Additions to members’ service retainers |
|
449,861 |
|
|
382,184 |
|
|
703,265 |
|
|||
| Refunds of members’ service retainers |
|
(373,827 |
) |
|
(575,999 |
) |
|
(497,761 |
) |
|||
| Net cash provided by (used in) financing activities |
|
2,337,971 |
|
|
(46,814 |
) |
|
5,257,271 |
|
|||
| Effects of exchange rate changes on cash, cash equivalents and restricted cash |
|
2,050 |
|
|
1,374 |
|
|
3,239 |
|
|||
| Net increase (decrease) in cash, cash equivalents and restricted cash |
|
80,846 |
|
|
(1,346,535 |
) |
|
36,746 |
|
|||
| Cash, cash equivalents and restricted cash—Beginning of period |
|
854,153 |
|
|
2,200,688 |
|
|
2,163,942 |
|
|||
| Cash, cash equivalents and restricted cash—End of period | $ |
934,999 |
|
$ |
854,153 |
|
$ |
2,200,688 |
|
|||
| A reconciliation of net loss, the most comparable GAAP measure, to Adjusted EBITDA is set forth below: | ||||||||||||
Year Ended |
||||||||||||
(Amounts in thousands) |
2021 |
2020 |
2019 |
|||||||||
Net loss |
$ |
(4,631,595 |
) |
$ |
(3,833,857 |
) |
$ |
(3,774,887 |
) |
|||
Income tax (benefit) provision(a) |
|
3,464 |
|
|
19,506 |
|
|
45,637 |
|
|||
Interest and other (income) expenses, net(a) |
|
930,648 |
|
|
(532,412 |
) |
|
(190,248 |
) |
|||
Depreciation and amortization(a) |
|
709,473 |
|
|
779,368 |
|
|
589,914 |
|
|||
Restructuring and other related costs(a) |
|
433,811 |
|
|
206,703 |
|
|
329,221 |
|
|||
Impairment/(gain on sale) of goodwill, intangibles and other assets(a) |
870,002 |
1,355,921 |
335,006 |
|||||||||
Stock-based compensation expense(b) |
|
109,740 |
|
|
50,758 |
|
|
346,747 |
|
|||
Stock-based payments for services rendered by consultants(b) |
|
(2,271 |
) |
|
7,893 |
|
|
20,367 |
|
|||
Change in fair value of contingent consideration liabilities(c) |
|
— |
|
|
(122 |
) |
|
(60,667 |
) |
|||
Legal, tax and regulatory reserves and settlements |
|
8,525 |
|
|
1,794 |
|
|
3,678 |
|
|||
Legal costs related to regulatory investigations and litigation(d) |
|
26,599 |
|
|
53,048 |
|
|
— |
|
|||
Expense related to mergers, acquisitions, divestitures and capital raising activities |
8,218 |
7,956 |
154,641 |
|||||||||
Adjusted EBITDA |
$ | (1,533,386 |
) | $ | (1,883,444 |
) | $ | (2,200,591 |
) | |||
| (a) | As presented on our condensed consolidated statements of operations. |
| (b) | Represents the non-cash expense of our equity compensation arrangements for employees, directors, and consultants. |
| (c) | Represents the change in fair value of the contingent consideration associated with acquisitions as included in selling, general and administrative expenses on the condensed consolidated statements of operations. |
| (d) | Legal costs incurred by the Company in connection with regulatory investigations and litigation regarding the Company’s 2019 withdrawn initial public offering and the related execution of the SoftBank Transactions, net of any insurance or other recoveries. See section entitled "Legal Matters" in Note 23 of the notes to the condensed consolidated financial statements included elsewhere in this Quarterly Report for details regarding the related regulatory investigations and litigation matters. |
| A reconciliation of location gross profit/(loss), the most comparable GAAP measure, to |
||||||||||||
Year Ended |
||||||||||||
(Amounts in thousands) |
2021 |
2020 |
2019 |
|||||||||
Location Gross Profit / (Loss) including Depreciation & Amortization |
$ |
(1,288,795 |
) |
$ |
(1,125,053 |
) |
$ |
(214,934 |
) |
|||
Depreciation and amortization |
|
671,932 |
|
|
715,413 |
|
|
515,309 |
|
|||
Location Gross Profit / (Loss) excluding Depreciation & Amortization |
|
(616,863 |
) |
|
(409,640 |
) |
|
300,375 |
|
|||
Unconsolidated management fee revenue |
|
(9,468 |
) |
|
(4,730 |
) |
|
(5,473 |
) |
|||
Stock-based compensation expense |
|
14,950 |
|
|
8,975 |
|
|
46,135 |
|
|||
Indirect location operation expenses |
|
99,341 |
|
|
132,165 |
|
|
176,116 |
|
|||
Building Margin |
$ |
(512,040 |
) |
$ |
(273,230 |
) |
$ |
517,153 |
|
|||
|
||||||||||||
Three Months Ended |
Year Ended |
|||||||||||||||||||
(Amounts in thousands) |
|
|
|
|
|
|||||||||||||||
Revenue: |
|
|
|
|
|
|||||||||||||||
Consolidated Locations membership and service revenue |
$ |
694,119 |
$ |
625,043 |
$ |
563,787 |
|
$ |
575,366 |
$ |
2,458,315 |
|||||||||
Unconsolidated Locations management fee revenue |
2,176 |
2,017 |
1,377 |
3,898 |
|
9,468 |
||||||||||||||
Other revenue |
|
21,470 |
|
|
33,971 |
|
|
28,314 |
|
|
18,589 |
|
|
102,344 |
|
|||||
Total revenue |
|
717,765 |
|
|
661,031 |
|
|
593,478 |
|
|
597,853 |
|
|
2,570,127 |
|
|||||
Expenses: |
|
|
|
|
|
|||||||||||||||
Location operating expenses—cost of revenue (1) |
|
733,341 |
|
|
752,493 |
|
|
780,489 |
|
|
818,323 |
|
|
3,084,646 |
|
|||||
Pre-opening location expenses |
|
41,890 |
|
|
40,367 |
|
|
43,435 |
|
|
33,404 |
|
|
159,096 |
|
|||||
Selling, general and administrative expenses (1) |
277,152 |
233,928 |
225,082 |
274,420 |
1,010,582 |
|||||||||||||||
Restructuring and other related costs |
|
(48,168 |
) |
|
15,934 |
|
|
(27,794 |
) |
|
493,839 |
|
|
433,811 |
|
|||||
Impairment/(gain on sale) of goodwill, intangibles and other assets |
240,876 |
87,541 |
242,104 |
299,481 |
870,002 |
|||||||||||||||
Depreciation and amortization |
|
174,316 |
|
|
170,816 |
|
|
180,157 |
|
|
184,184 |
|
|
709,473 |
|
|||||
Total expenses |
|
1,419,407 |
|
|
1,301,079 |
|
|
1,443,473 |
|
|
2,103,651 |
|
|
6,267,610 |
|
|||||
Loss from operations |
|
(701,642 |
) |
|
(640,048 |
) |
|
(849,995 |
) |
|
(1,505,798 |
) |
|
(3,697,483 |
) |
|||||
Interest and other income (expense), net |
|
(102,553 |
) |
|
(206,465 |
) |
|
(68,499 |
) |
|
(553,131 |
) |
|
(930,648 |
) |
|||||
Pre-tax loss |
|
(804,195 |
) |
|
(846,513 |
) |
|
(918,494 |
) |
|
(2,058,929 |
) |
|
(4,628,131 |
) |
|||||
Income taxes benefit (provision) |
|
1,567 |
|
|
2,251 |
|
|
(4,015 |
) |
|
(3,267 |
) |
|
(3,464 |
) |
|||||
Net loss |
|
(802,628 |
) |
|
(844,262 |
) |
|
(922,509 |
) |
|
(2,062,196 |
) |
|
(4,631,595 |
) |
|||||
Net loss attributable to noncontrolling interests |
|
87,201 |
|
|
41,862 |
|
|
33,664 |
|
|
29,841 |
|
|
192,568 |
|
|||||
| Net loss attributable to |
$ |
(715,427 |
) |
$ |
(802,400 |
) |
$ |
(888,845 |
) |
$ |
(2,032,355 |
) |
$ |
(4,439,027 |
) |
|||||
| (1) | Exclusive of depreciation and amortization shown separately on the depreciation and amortization line. |
A reconciliation of net loss, the most comparable GAAP measure, to Adjusted EBITDA is set forth below: |
||||||||||||||||||||
Three Months Ended |
Year Ended |
|||||||||||||||||||
(Amounts in thousands) |
|
|
|
|
|
|||||||||||||||
Net loss |
$ |
(802,628 |
) |
$ |
(844,262 |
) |
$ |
(922,509 |
) |
$ |
(2,062,196 |
) |
$ |
(4,631,595 |
) |
|||||
Income tax (benefit) provision |
|
(1,567 |
) |
|
(2,251 |
) |
|
4,015 |
|
|
3,267 |
|
|
3,464 |
|
|||||
Interest and other (income) expense |
|
102,553 |
|
|
206,465 |
|
|
68,499 |
|
|
553,131 |
|
|
930,648 |
|
|||||
Depreciation and amortization |
|
174,316 |
|
|
170,816 |
|
|
180,157 |
|
|
184,184 |
|
|
709,473 |
|
|||||
Restructuring and other related costs |
|
(48,168 |
) |
|
15,934 |
|
|
(27,794 |
) |
|
493,839 |
|
|
433,811 |
|
|||||
Impairment/(gain on sale) of goodwill, intangibles and other assets |
240,876 |
87,541 |
242,104 |
299,481 |
870,002 |
|||||||||||||||
Stock-based compensation expense |
|
47,808 |
|
|
4,040 |
|
|
4,294 |
|
|
53,598 |
|
|
109,740 |
|
|||||
Stock-based payments for services rendered by consultants |
1 |
1 |
1 |
(2,274 |
) |
(2,271 |
) |
|||||||||||||
Change in fair value of contingent consideration liabilities |
— |
— |
— |
— |
|
— |
||||||||||||||
Legal, tax and regulatory reserves and settlements |
771 |
258 |
79 |
7,417 |
8,525 |
|||||||||||||||
Legal costs related to regulatory investigations and litigation |
|
1,545 |
|
|
2,735 |
|
|
(1,077 |
) |
|
23,396 |
|
|
26,599 |
|
|||||
Expense related to mergers, acquisitions, divestitures and capital raising activities |
1,685 |
2,724 |
3,303 |
506 |
8,218 |
|||||||||||||||
Adjusted EBITDA |
$ |
(282,808 |
) |
$ |
(355,999 |
) |
$ |
(448,928 |
) |
$ |
(445,651 |
) |
$ |
(1,533,386 |
) |
|||||
|
||||||||||||||||||||
| A reconciliation of location gross profit/(loss), the most comparable GAAP measure, to |
||||||||||||||||||||
Three Months Ended |
Year Ended |
|||||||||||||||||||
(Amounts in thousands) |
|
|
|
|
|
|||||||||||||||
Location Gross Profit / (Loss) including Depreciation & Amortization |
$ |
(200,934 |
) |
$ |
(287,851 |
) |
$ |
(385,644 |
) |
$ |
(414,366 |
) |
$ |
(1,288,795 |
) |
|||||
Depreciation and amortization |
|
163,888 |
|
|
162,418 |
|
|
170,319 |
|
|
175,307 |
|
|
671,932 |
|
|||||
Location Gross Profit / (Loss) excluding Depreciation & Amortization |
|
(37,046 |
) |
|
(125,433 |
) |
|
(215,325 |
) |
|
(239,059 |
) |
|
(616,863 |
) |
|||||
Unconsolidated management fee revenue |
|
(2,176 |
) |
|
(2,017 |
) |
|
(1,377 |
) |
|
(3,898 |
) |
|
(9,468 |
) |
|||||
Stock-based compensation expense |
|
4,776 |
|
|
609 |
|
|
734 |
|
|
8,831 |
|
|
14,950 |
|
|||||
Indirect location operation expenses |
|
25,771 |
|
|
24,205 |
|
|
24,136 |
|
|
25,229 |
|
|
99,341 |
|
|||||
Building Margin |
$ |
(8,675 |
) |
$ |
(102,636 |
) |
$ |
(191,832 |
) |
$ |
(208,897 |
) |
$ |
(512,040 |
) |
|||||
A reconciliation of net cash provided by (used in) operating activities, the most comparable GAAP measure, to Free Cash Flow is set forth below: |
||||||||||||
|
Year Ended |
|||||||||||
(Amounts in thousands) |
2021 |
2020 |
2019 |
|||||||||
Net cash provided by (used in) operating activities (a) |
$ |
(1,911,937 |
) |
$ |
(857,008 |
) |
$ |
(448,244 |
) |
|||
Less: Purchases of property and equipment (a) |
|
(296,895 |
) |
|
(1,441,232 |
) |
|
(3,488,086 |
) |
|||
Free Cash Flow |
$ |
(2,208,832 |
) |
$ |
(2,298,240 |
) |
$ |
(3,936,330 |
) |
|||
| (a) | As presented on our condensed consolidated statements of cash flows. |
Key Performance Supplemental Information
(Amounts in ones, except percentages) |
|
|
|
|
|
|||||||||||||||
Other key performance indicators: |
|
|
|
|
|
|||||||||||||||
Consolidated Locations (1),(2),(3) |
|
|
|
|
|
|||||||||||||||
Membership and service revenues |
$ |
694,119 |
|
$ |
625,043 |
|
$ |
563,787 |
|
$ |
575,366 |
|
$ |
609,191 |
|
|||||
Workstation Capacity |
|
746,000 |
|
|
766,000 |
|
|
770,000 |
|
|
804,000 |
|
|
865,000 |
|
|||||
Physical Memberships |
|
469,000 |
|
|
432,000 |
|
|
386,000 |
|
|
378,000 |
|
|
387,000 |
|
|||||
All Access and Other Legacy Memberships |
|
45,000 |
|
|
32,000 |
|
|
20,000 |
|
|
15,000 |
|
|
13,000 |
|
|||||
Memberships |
|
514,000 |
|
|
464,000 |
|
|
406,000 |
|
|
393,000 |
|
|
401,000 |
|
|||||
Physical Occupancy Rate |
|
63 |
% |
|
56 |
% |
|
50 |
% |
|
47 |
% |
|
45 |
% |
|||||
Enterprise Physical Membership Percentage |
|
47 |
% |
|
49 |
% |
|
52 |
% |
|
52 |
% |
|
52 |
% |
|||||
Unconsolidated Locations (1),(2),(3) |
|
|
|
|
|
|||||||||||||||
Membership and service revenues(4) |
$ |
132,886 |
|
$ |
119,363 |
|
$ |
101,380 |
|
$ |
89,815 |
|
$ |
86,144 |
|
|||||
Workstation Capacity |
|
166,000 |
|
|
165,000 |
|
|
168,000 |
|
|
160,000 |
|
|
166,000 |
|
|||||
Physical Memberships |
|
121,000 |
|
|
114,000 |
|
|
110,000 |
|
|
97,000 |
|
|
89,000 |
|
|||||
Memberships |
|
121,000 |
|
|
114,000 |
|
|
111,000 |
|
|
97,000 |
|
|
89,000 |
|
|||||
Physical Occupancy Rate |
|
73 |
% |
|
69 |
% |
|
66 |
% |
|
61 |
% |
|
54 |
% |
|||||
Systemwide Locations |
|
|
|
|
|
|||||||||||||||
Membership and service revenues (5) |
$ |
827,005 |
|
$ |
744,406 |
|
$ |
665,167 |
|
$ |
665,181 |
|
$ |
695,335 |
|
|||||
Workstation Capacity |
|
912,000 |
|
|
932,000 |
|
|
937,000 |
|
|
963,000 |
|
|
1,030,000 |
|
|||||
Physical Memberships |
|
590,000 |
|
|
546,000 |
|
|
496,000 |
|
|
475,000 |
|
|
476,000 |
|
|||||
All Access and Other Legacy Memberships |
|
46,000 |
|
|
32,000 |
|
|
20,000 |
|
|
15,001 |
|
|
13,000 |
|
|||||
Memberships |
|
635,000 |
|
|
578,000 |
|
|
517,000 |
|
|
490,000 |
|
|
490,000 |
|
|||||
Physical Occupancy Rate |
|
65 |
% |
|
59 |
% |
|
53 |
% |
|
49 |
% |
|
46 |
% |
|||||
| (1) | For certain key performance indicators the amounts we present are based on whether the indicator relates to a location for which the revenues and expenses of the location are consolidated within our results of operations ("Consolidated Locations") or whether the indicator relates to a location for which the revenues and expenses are not consolidated within our results of operations, but for which we are entitled to a management fee for our advisory services ("Unconsolidated Locations"). As of |
| (2) | Effective |
| (3) | On |
| (4) | Unconsolidated membership and service revenues represents the results of Unconsolidated Locations that typically generate ongoing management fees for the Company at a rate of 2.75 |
| (5) | Systemwide Location membership and service revenues represents the results of all locations regardless of ownership, including Consolidated and Unconsolidated Locations. |
Source: We Work
Category: Investor Relations
View source version on businesswire.com: https://www.businesswire.com/news/home/20220311005124/en/
Investors
investor@wework.com
Media
press@wework.com
Source: We Work
FAQ
What were WeWork's total revenues for Q4 2021?
What is the expected revenue range for WeWork in 2022?
What was the net loss reported by WeWork in Q4 2021?
How much did All Access memberships increase in Q4 2021?
What is the projected Adjusted EBITDA status for WeWork in 2022?
