WeWork sees encouraging signs of recovery, reports US$2bn loss

WeWork made a US$2bn loss in its first quarter amid continuing impacts of the pandemic but it said it is seeing “encouraging signs of recovery”.

The hot-desk office space group in March announced a SPAC – special purpose acquisition company – deal worth around US$9bn which will see it combined with Bowx Acquisition Corp (NASDAQ:BOWX), which rose by 2.49% on Thursday and added another 1.9% in out of hours deals.

WeWork generated US$598mln of revenue and its occupancy rate increased to 50% from 47%.

It had 490,000 members in the first quarter, down from 693,000 in the same period of 2020.

The loss included US$494mln of restructuring costs tied to non-cash SoftBank stock purchases and a settlement with Neumann, plus a US$299mln impairment charge.

In New York, Bowx Acquisition Corp shares were indicated at US$13.41.