WeWork Companies LLC said on Thursday revenue declined and its cash burn increased in the third quarter, but management expressed confidence the shared-workplace provider can weather the hit to the global office sector from Covid-19.
Quarterly revenue slid 8% from the second quarter to $811 million, while the company posted negative free cash flow of $517 million, greater than $482 million of cash burn a quarter ago, WeWork said in a memo to employees seen by Reuters.
WeWork said member retention improved and renewal rates stabilized with the loss of desks in September at its lowest level since March when Covid-19 shut down businesses around the world and left office buildings vacant.
The pandemic has accelerated a "seismic shift" in the office sector that has put flexibility - an industry byword for the short-term leases the company embraces - and WeWork at the forefront, the memo signed by Chief Executive Sandeep Mathrani and Chief Financial Officer Ben Dunham said.
"This is our moment, and I know that together, we will continue to define the future of work," they said.