WeWork’s 2021 Fourth Quarter Report Reveals Narrowed Losses, But Decrease In Annual Revenue

WeWork has released its fourth quarter financial report for the fiscal year ending on December 31, 2021, which revealed consolidations, growing occupancy, and increased demand for its All Access membership. 

During the fourth quarter of 2021, WeWork reported its total revenue was $718 million, which shows a 9% increase from the $661 million seen during the third quarter. However, its annual revenue clocked in at $2.57 billion, which is a decrease from the $3.41 billion seen in 2020. 

Additionally, the company’s fourth quarter operating cash flow totaled at $373 million, and its net loss was $803 million. This shows that the company’s losses have slightly narrowed by 5% compared to the third quarter.  

WeWork also reported restructuring costs of negative $48 million driven by lease terminations and a $241 million impairment caused by building exits.  

The coworking operator’s occupancy levels during the fourth quarter also grew by 6 points quarter-over-quarter to 66%, which includes memberships that have been sold but are not yet occupied.  

According to the results, systemwide gross desk sales came in at 217,000 during the fourth quarter, while consolidated gross desk sales totaled 164,000 during the same time. 

While its average revenue per member for memberships remained stagnant at $484 in the fourth quarter compared to $485 seen in the third quarter, memberships for its All Access program grew by 41% quarter-over-quarter. 

WeWork represented 0.5% of all US commercial office space and sold 9% of traditional office square feet during 2021. Its 5 million square feet of space in Manhattan accounted for 1% of office stock in the region. 

The company says it is focusing on taking a more asset-light growth, which led it to acquire Dallas coworking operator Common Desk earlier this year.  

WeWork also partnered with flexible office platform Upflex last month to boost its network of spaces for WeWork Access members. Through this deal, WeWork will serve as Upflex’s exclusive flexible office operator to sell Upflex inventory to its members.