WeWork Misses On Q2; Reaffirms FY22 Outlook

WeWork Inc WE reported second-quarter FY22 revenue growth of 7% quarter-on-quarter to $815 million, missing the consensus of $824.3 million. Revenue rose 37% year-over-year.
EPS loss of $(0.76) missed the consensus loss of $(0.57).
The global ﬂexible space provider's occupancy improved 400 bps Q/Q to 72%. Systemwide gross desk sales totaled 205,000.
Consolidated gross desk sales totaled 160,000, equating to 9.6 million square feet sold. Consolidated new desk sales totaled 73,000.
The average revenue per member for physical memberships was $481. ARPM, using the company's budgeted foreign exchange rates, was $497, up 3% Q/Q. All-Access memberships increased to 62,000, up 13% Q/Q.
Loss from operations improved to $(316) million from $(851) million Y/Y. Adjusted EBITDA loss narrowed to $(134) million from $(449) million a year ago.
WeWork held $1.7 billion in cash, cash commitments, and access to liquidity.
Outlook: WeWork reaffirmed its FY22 revenue outlook of $3.4 billion - $3.5 billion and Adjusted EBITDA of negative $(400) million - $(475) million.
Price Action: WE shares traded lower by 2.13% at $5.06 in the premarket on the last check Thursday.
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