Demand for WeWork space soars in Q2

Flexible workspace provider WeWork is confident heading into the second half of this year, reporting 37% revenue growth in Q2 2022. The firm posted a revenue figure of $815m (£671m) for the three months to 30 June, in line with expectations of between $800m and $825m, and ahead of $593m recorded in Q2 2021. In H1, revenue grew to $1.58bn from $1.19bn. WeWork reported average revenue per physical member of $481 as of 30 June. Net loss was $635m, including $391m related to non-cash expenses, narrowing from $923m recorded a year ago. The company’s half-year figure improved by more than a half to net loss of $1.14bn, from $2.99bn in H1 2021. Occupancy levels in Q2 2022 stood at 72%, up by a third year-on-year. WeWork’s system-wide real estate portfolio consisted of 777 locations across 38 countries, supporting 917,000 desks and 658,000 physical memberships as of 30 June. WeWork’s consolidated real estate portfolio comprised 641 locations across 33 countries, which supported 749,000 desks and 528,000 physical memberships, and equated to occupancy of 70% or 72% when including committed memberships. 19 July has also marked the launch of WeWork Workplace, a new space management solution built-in partnership with Yardi. To date, WeWork has signed 11 companies to the platform, providing them with 7,400 licenses to manage spaces in WeWork’s portfolio and in non-WeWork locations. The pipeline includes more than 100 companies comprising more than 35,000 licenses. Sandeep Mathrani, chief executive and chairman at WeWork, said: “As we head into the H2 of the year, we remain confident in our proven ability to execute against our goals of growing revenue, increasing occupancy and continuing to drive towards profitability.” For 2022 as a whole, WeWork aims to achieve its revenue target of between $3.4bn and $3.5bn, although still expects to report a loss. To send feedback, e-mail evelina.grecenko@eg.co.uk or tweet @gre_eve Image © Erik Pendzich/Shutterstock