WeWork’s Q2 net loss widens from a year ago but is less than half that of Q1 as recovery accelerates
WeWork reported Friday a second-quarter net loss that widened slightly from a year ago, but was less than half that of the first-quarter, as the flexible-office-space company said recovery trends that started earlier this year accelerated. WeWork is set to go public by way of a merger with special purpose acquisition company (SPAC) BowX Acquisition Corp.
WeWork reported a net loss of $888.85 million for the quarter ended June 30, compared with a loss of $863.83 million in the year-ago period but down from $2.06 billion in the first quarter. Revenue fell 32.7% from a year ago to $593.48 million, and was down slightly from $598 million in the first quarter, but the company said revenue increased sequentially each month in the second quarter. The company expects third-quarter revenue to improve to $650 million to $700 million. “Regardless of how companies are thinking about the future of work, access to a space to collaborate, innovate, mentor and build culture remains critical,” said Chief Executive Sandeep Mathrani. “The demand from businesses of all sizes accelerated through the quarter and steadily continued into July, delivering strong sales momentum that will drive occupancy and revenue growth.” BowX Acquisition’s stock edged up 0.1% in premarket trading.