WeWork expects a rise of at least 30 percent in revenue on office space in 2022

WeWork is backed by Softbank and this year it expects full-year revenue between $3.35 billion and $3.5 billion, a 30%-36% rise from its 2021 revenue.

WeWork Inc a flexible workspace provider is expecting its office space revenue to go up by 30% this year amid surge in demand for office space as many companies are looking at hybrid model.

WeWork is backed by Softbank and this year it expects full-year revenue between $3.35 billion and $3.5 billion, a 30%-36% rise from its 2021 revenue.

Companies like WeWork offering workspace solutions are benefitted after the COVID-19 pandemic, as it has triggered the option of offering the employees work from places other than their offices. WeWork in its bargain 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, which reported a smaller loss on Tuesday.

WeWork went public in October last year after about two-year struggle in the market, it was aided by chief executive Sandeep Mathrani’s vision 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 31 December 2021.

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.