(Reuters) – WeWork Inc on Thursday said it turned a core profit in December for the first time since it went public, helped by cost cuts.
The office-sharing firm, which went public in 2021, said 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.
Shares of WeWork rose as much as 4% premarket.
The company had enjoyed a pandemic-driven shift to flexible work outside traditional offices, but it struggled 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 countries. The New York-based company also announced its exit from 40 U.S. locations.
WeWork said it expects current-quarter revenue to be between $830 million and $855 million and adjusted EBITDA to be in the range of a $25 million loss to breakeven.
For the fourth quarter ended Dec. 31, the New York-based company posted a revenue of $848 million, below expectations of $873.8 million, according to the mean estimate from 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.
(Reporting by Kannaki Deka in Bengaluru; Editing by Janane Venkatraman)
