Coworking space provider WeWork’s occupancy and desk sales went up last quarter, but those increases could not prevent it from experiencing a revenue drop, leading to net losses of $888.8 million, Commercial Observer reports. WeWork’s revenues fell from $881.7 million during the first quarter of 2020 to $593.4 million during the second quarter of this year, per the company’s recent earnings report. WeWork garnered a total of $1.19 billion in revenue as of June 2021—a drop from the almost $2 billion in collected midway through last year.
As WeWork’s net losses went up from $863.8 million in the second quarter of 2020 to $888.8 million during the second quarter of this year, the coworking company’s total losses are $2.9 billion as of June 30. The total is a significant increase from the company’s $1.04 billion in losses within the same time frame last year.
WeWork CEO Sandeep Mathrani remained optimistic about the company’s future due the increased demand for coworking space, Commercial Observer reports.
“Regardless of how companies are thinking about the future of work, access to a space to collaborate, innovate, mentor and build culture remains critical,” Mathrani said in a statement. “WeWork’s broad spectrum of flexible solutions has made our value proposition more apparent than ever and we are well-positioned to provide companies around the world with the flexibility to adapt to the changing needs of the hybrid workforce.”
Reason for Optimism
There could be reason for optimism, despite WeWork’s revenue dips. The coworking company’s desk sales totaled 98,000 during the second quarter—an 11,000 increase from the prior quarter, per the company’s earnings report. WeWork’s occupancy has increased quarter over quarter from 48% to 52%. The company plans to reach 57% occupancy by the end of the year, Commercial Observer reports. Meanwhile, WeWork is still in the process of going public through a special purpose acquisition company (SPAC) deal that would value the company at $9 billion.
Additionally, WeWork recently announced a $150 million partnership with Cushman & Wakefield to assist tenants and landlords create coworking space strategies as well as plans to run coworking offices through parts of Saks Fifth Avenue stores in New York.
Joe Dyton can be reached at firstname.lastname@example.org.