WeWork Continues to Implode (yet survive!)

WeWork’s quarterly losses almost quadrupled to $2.1 billion in Q1 (vs. $556 million in net losses in 2020) as the co-working company saw more than 25% of its remaining members finally walk away from their short-term leases. The company was also saddled with hundreds of millions of dollars in expenses tied to "restructuring" its property portfolio.

Another thing: WeWork's revenue fell almost 50% from $1.1 billion to $598 million.

Here's a breakdown of the key details from the FT report:

• A settlement with ousted co-founder Adam Neumann accounted for about $500 million of the loss.
• WeWork’s quarterly revenues fell almost 50% YoY from $1.1 billion to $598 million and the company lost about 200K customers.
• The number of WeWork "members" fell from 693,000 in March 2020 to 490,000 a year later.
• Restructuring and other related costs ballooned from $56m in the first quarter of 2020 to $494m in the first quarter of 2021.
• The results underscore the extent of the challenge for WeWork, which told prospective investors in March that full-year revenues would climb rapidly from $3.2bn last year to $7bn by 2024.
• Selling, general and administrative expenses almost halved to $274m between the first quarter of 2020 and the first quarter of 2021.
• Posts associated with opening new offices and running existing ones fell about $160m to $852m in the same period.

A source inside the company told the FT that it still has $2.2 billion of liquidity left over from the massive liquidity injection from late 2019, when SoftBank stepped in with $6 billion to save the company from bankruptcy.