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Bengaluru: we work Inc said on Thursday it posted a core profit in December for the first time since going public, helped by cost-cutting.
The office-sharing firm, which will go public in 2021, said that “for the first time in WeWork’s history”, the company achieved an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) profitability for December 2022.
WeWork shares rose 4% pre-market.
The company had enjoyed a pandemic-driven shift to flexible working outside traditional offices, but it was grappling with long-term lease obligations. Some of its tenants are only on short term leases.
Last month, WeWork said it planned to eliminate 300 roles across the country. The New York-based company also announced an exit from 40 US locations.
WeWork said it expects current-quarter revenue to be between $830 million and $855 million and adjusted EBITDA in a loss range of $25 million to break-even.
For the fourth quarter ended December 31, the New York-based company posted revenue of $848 million, which was below expectations of $873.8 million, according to the average estimate of five analysts, based on Refinitiv data.
Its adjusted EBITDA for the fourth quarter was negative $26 million compared to negative $283 million a year ago.
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