WeWork
Overall, shares are down nearly 50% following the company's spike higher in late October upon the company making its public debut. WeWork is now a much smaller and less ambitious company than the behemoth that was valued at $47 billion before the company's IPO fell apart. Currently, the company is valued at just under $6 billion.
Inside the Numbers
In Q3, WeWork reported revenue of $661 million, an 11% increase from Q2. The company also posted a loss of $4.54 per share which is quite significant considering its current market stock price is $8.46. However, it is an improvement from the company's $5.51 per share loss in Q2. Due to uncertainty around the company, no analysts are issuing estimates for the stock.
However, the company is slowly seeing a recovery in people returning to the company's shared workspace. As of September, the company said that memberships to offices had increased to 432,000 which equates to about a 56% occupancy rate. It's high-priced, All Access memberships increased to 32,000 which is a 60% increase from the last quarter.
The company's bullish case was more evident in a pre-pandemic world as many companies were using their offices to grow in a lean and agile way. Now, the rise of remote and flexible work means this source of demand is no longer as meaningful for WeWork, but it could see an increase in people with remote jobs, choosing to rent an office or desk.
WeWork's business has significantly improved from its nadir during the pandemic when many customers cancelled leases and stopped paying rent. In previous comments, CEO Sandeep Mathrani had said that the company was targeting 2022 as the year when the company would become profitable. The only way this could happen is with an increase in occupancy rates and further strength in commercial real estate.
