WeWork reports $1.25 billion net loss for Q3
WeWork reported a $1.25 billion net loss for the third quarter during a call on Wednesday with the embattled company's bondholders, more than doubling its year-earlier number.
Why it matters: These results represent WeWork's final quarter under the leadership of Adam Neumann, who was ousted after a failed IPO.
Axios obtained a copy of the slide deck presentation. Some highlights:
- Annual revenue run rate is nearly $4.2 billion. That's up 24.6% from Q2, and just more than double the $2 billion figure from Q3 2018.
- Net loss increased from $497 million in Q3 2018 to $1.25 billion in Q3 2019, bringing the year-to-date loss to $2.16 billion. Quarterly adjusted EBITDA loss grew from $306 million to $651 million.
- Total desks are now at 719,000, which is an increase of 115,000 in the quarter and a 109% increase over Q3 2018.
- Total locations now stands at 625, representing 127 cities in 33 countries.
- Occupancy fell slightly from its early 2018 peak, and went down from 91% to 88% for "mature" locations.
- Enterprise membership as a percentage of total membership rose to 43%, compared to 40% in the prior quarter and 34% in the year-earlier period. Total membership is now 264,000.
What they're saying: WeWork did not provide any forward-looking guidance on layoffs or senior management changes.
The bottom line: The real reporting challenge will come in three months, when WeWork's quarterly results will reflect its new, slower-growth strategy.