WeWork expects 2022 revenue to jump at least 30% on office space demand
The WeWork logo is displayed on a screen during the company's IPO on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 21, 2021. REUTERS/Brendan McDermid/File photo
March 11 (Reuters) - Flexible workspace provider WeWork Inc (WE.N) said it expects 2022 revenue to jump at least 30% amid demand for office space from companies switching to a hybrid model of work.
The Softbank-backed firm said it expects full-year revenue between $3.35 billion and $3.5 billion, a 30%-36% rise from its 2021 revenue.
The COVID-19 pandemic has pushed companies to offer employees to work from places other than their offices, benefiting workspace providers such as WeWork, which offers workstations, private offices and customized floors.
Softbank-backed WeWork's business has also recovered due to easing of COVID-19 curbs, after work-from-home arrangements last year weighed heavily on the company amid reduced occupancy and higher operating costs.
The switch to a hybrid work model had also lifted WeWork's London-listed rival IWG (IWG.L), which reported a smaller loss on Tuesday. read more
WeWork, which went public in October last year after a near two-year struggle, was aided further by chief executive Sandeep Mathrani's push to cut costs by exiting unprofitable leases and selling non-core assets.
On Friday, WeWork said it expects revenue between $900 million and $1 billion in the third and fourth quarter of 2022, which is the range it expects to become profitable on an adjusted EBITDA basis.
Long-term lease obligations, a closely-watched metric given the company generally leases real estate, fell about 11% to $17.93 billion as of Dec. 31.
New desk sales for the fourth quarter, on the other hand, rose to 87,000 from 84,000 in the third quarter.
Revenue rose about 9% quarter-on-quarter to $718 million.
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