WEWORK INC Reports Fourth Quarter Earnings Results for FY2022
March 5, 2023
Earnings report
WEWORK ($NYSE:WE): 1 % . T h i s m a r k s a n o t h e r s u c c e s s f o r t h e c o m p a n y , d e m o n s t r a t i n g s t r o n g g r o w t h f r o m t h e p r e v i o u s q u a r t e r a n d s u b s t a n t i a l p r o g r e s s f r o m t h e s a m e t i m e l a s t y e a r . T h i s q u a r t e r r e f l e c t s W E W O R K ‘ s a b i l i t y t o c o n t i n u e t o e x p a n d t h e c o m p a n y ‘ s r e a c h a n d o v e r a l l o p e r a t i o n s d e s p i t e c u r r e n t i n d u s t r y c o n d i t i o n s .
W i t h f u r t h e r i n v e s t m e n t s i n t h e i r c o r e p r o d u c t o f f e r i n g s , s u c h a s c o w o r k i n g s p a c e s a n d e n t e r p r i s e s e r v i c e s , W E W O R K r e m a i n s f o c u s e d o n f i n d i n g d i v e r s i f i e d w a y s t o d r i v e r e v e n u e a n d s u s t a i n l o n g – t e r m g r o w t h . A s c u s t o m e r s a r e i n c r e a s i n g l y t u r n i n g t o t h e c o m p a n y f o r t h e i r w o r k s p a c e n e e d s , W E W O R K i s w e l l – p o s i t i o n e d t o c o n t i n u e i t s s u c c e s s i n t o t h e f u t u r e.
Stock Price
On Thursday, WEWORK INC reported its fourth quarter financial results for FY2022, revealing that its stock opened at 1.7, and closed at the same price, a decline of 2.3% from the prior day’s closing price of 1.7. Overall, WEWORK INC reported a solid performance in FY2022, with steady revenue and cost growth, as well as a successful debt repayment and additional funding. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Wework Inc. More…
| Total Revenues | Net Income | Net Margin |
| 3.25k | -2.03k | -51.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Wework Inc. More…
| Operations | Investing | Financing |
| -733 | -294 | 397 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Wework Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 17.86k | 21.32k | -5.18 |
Key Ratios Snapshot
Some of the financial key ratios for Wework Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -2.1% | – | -54.6% |
| FCF Margin | ROE | ROA |
| -33.0% | 33.1% | -6.2% |
Analysis
GoodWhale has conducted a fundamental analysis of WEWORK INC and the evaluation reveals a low health score of 2/10. This score is based on an assessment of the company’s current cashflows and debt and suggests that it is unlikely to be able to pay off debt and fund future operations. Furthermore, the Star Chart reveals that WEWORK INC is strong in medium in growth and weak in asset, dividend, and profitability. This categorizes WEWORK INC as a ‘cheetah’, which denotes companies that have achieved high revenue or earnings growth but are deemed less stable due to lower profitability. Given this analysis, we believe that investors who are interested in higher volatility and potential return could find WEWORK INC a potentially attractive investment. However, potential investors should also note the risks associated with investing in the company due to its low health score. More…
Peers
The company has a network of over 200 physical locations in more than 50 cities around the world. WeWork Inc. has raised over $10 billion from investors including SoftBank, Benchmark, and T. Rowe Price. The company’s main competitors are Doma Holdings Inc, Eik fasteignafelag hf, Elkop SA.
– Doma Holdings Inc ($NYSE:DOMA)
Doma Holdings Inc is a real estate investment trust that primarily focuses on the ownership and management of multifamily properties. As of 2022, the company has a market capitalization of 165.34 million and a return on equity of -36.57%. The company’s portfolio consists of properties in the United States and Canada.
– Eik fasteignafelag hf ($LTS:0R70)
Eik fasteignafelag hf is a publicly traded real estate company based in Iceland. The company’s primary business is the development, ownership, and operation of commercial real estate properties in Iceland. As of December 31, 2020, the company’s portfolio consisted of office buildings, retail properties, and industrial warehouses.
Eik fasteignafelag hf has a market cap of 42.01B as of 2022. The company has a Return on Equity of 19.8%. Eik fasteignafelag hf is a publicly traded real estate company based in Iceland. The company’s primary business is the development, ownership, and operation of commercial real estate properties in Iceland. As of December 31, 2020, the company’s portfolio consisted of office buildings, retail properties, and industrial warehouses.
– Elkop SA ($LTS:0LT6)
Elkop SA is a Polish company that specializes in the manufacture of electrical equipment. The company has a market cap of 18.33M as of 2022 and a Return on Equity of 6.08%. Elkop SA’s products include switches, sockets, and other electrical accessories. The company has been in business since 1967 and employs over 500 people.
Summary
Wework Inc posted total revenue of USD -454.0 million for the quarter, up 36.5% from the same quarter of the prior year. Net income for the quarter came in at USD 848.0 million, which represents a year over year growth of 18.1%. This encouraging performance demonstrates that Wework is continuing to make progress on its financials and should be considered by potential investors. Investors should pay close attention to the company’s performance in the coming quarters to see whether or not it can sustain its impressive growth.
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