WeWork’s net loss in Q3 narrows

Office-sharing firm WeWork Inc on Monday reported a smaller loss in its first quarterly result since going public last month, as a rebound in demand for office space due to easing Covid-19 related restrictions helped boost occupancy.

WeWork said occupancy in its offices, which cater to both individual and corporate members, was at 59% as of Sept 30, up 9% from a year earlier. Total memberships were up at 578,000 from 542,000.

The pandemic has also prompted many companies to adopt a more hybrid model, where employees have the flexibility to work from offices, coworking spaces, public areas and home, partly helping SoftBank Group Corpbacked WeWork.

The company has attempted to cut losses by exiting unprofitable leases and selling non-core assets, after finally succeeding in going public through a merger with a blank-cheque firm in a $9-billion deal.

It reported a net loss of $844.3 million in the third quarter ended Sept 30, compared with a loss of $999.5 million a year earlier.

The loss also included one-time expenses of $262 million, mainly from depreciation and impairment of assets.

WeWork said it ended the third quarter with cash and unfunded cash commitments of $2.3 billion.