Workplace-leasing firm WeWork misplaced over $2 billion within the first quarter of 2021, because it prepares to go public through a SPAC deal greater than a yr after it initially sought to IPO.
The corporate reported a web lack of $2.06 billion on gross sales of $598 million. Occupancy rose to 50 %, up barely from the earlier quarter, the corporate stated Thursday in a press launch.
“WeWork continued to see encouraging indicators of restoration with gross sales exercise, a crucial indicator of future income, ramping over the primary quarter, as the corporate achieved gross desk gross sales of 24k in January, 25k in February, and 38k in March,” the corporate stated.
WeWork stated it spent $494 million on “restructuring prices” pushed by Japanese tech large SoftBank’s inventory purchases, and a settlement with ousted CEO and co-founder Adam Neumann.
The corporate stated it completed the quarter with $2.2 billion in liquidity, together with $719 million in money available.
The corporate is within the midst of a turnaround effort led by CEO Sandeep Mathrani, who was chosen to switch Neumann by Softbank, which has invested at the very least $18.5 billion in WeWork since 2017, largely at a a lot greater valuation than the corporate at the moment is believed to command.
Neumann was ousted on the finish of 2019, after the corporate filed to IPO only to shelve those plans over scrutiny from the media and buyers in regards to the firm’s questionable path to profitability and company governance underneath Neumann.
Now the corporate’s making an attempt to trim prices, right-size the ship and deal with its core office-leasing operations forward of its long-awaited public debut.
WeWork announced in March that it was finally going public later this yr by way of a merger with BowX Acquisition Corp, a particular objective acquisition firm, or SPAC. The deal might worth the corporate at $9 billion.