WeWork Inc (WE) 2021 Q4 法說會逐字稿

Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the WeWork Fourth Quarter and Full Year 2021 Results Conference Call. (Operator Instructions) Chandler Salisbury, Vice President of Investor Relations, you may begin your conference.

早安.我叫 Rob，今天我將擔任你們的電話會議主持人。現在，我歡迎大家參加 WeWork 2021 年第四季及全年業績電話會議。 （接線員指示）投資者關係副總裁 Chandler Salisbury，您可以開始您的電話會議了。

Good morning, and welcome to our fourth quarter 2021 earnings call. I'm Chandler Salisbury, VP of Investor Relations. With me today is Sandeep Mathrani, our CEO; and Ben Dunham, our CFO.

早安，歡迎參加我們2021年第四季財報電話會議。我是投資者關係副總裁錢德勒‧索爾茲伯里 (Chandler Salisbury)。今天與我一起出席的還有我們的執行長桑迪普·馬特拉尼 (Sandeep Mathrani) 和財務長 Ben Dunham。

During today's presentation, we'll refer to the earnings release and supplemental presentation, which we filed with the SEC and can be accessed at investor.wework.com. Today's presentation includes forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially.

在今天的演示中，我們將參考已提交給美國證券交易委員會 (SEC) 的財報和補充演示，這些文件可在 investor.wework.com 上查閱。今天的演示包含前瞻性陳述，這些陳述受風險和不確定性的影響，可能導致實際結果與預期有重大差異。

We will also discuss certain non-GAAP financial measures, which we believe are meaningful in evaluating the company's performance. Additional disclosures regarding these non-GAAP measures, including a GAAP to non-GAAP reconciliations, are included in our quarterly reports and supplemental presentation.

我們還將討論一些我們認為對評估公司績效有意義的非公認會計準則 (non-GAAP) 財務指標。有關這些非公認會計準則 (non-GAAP) 指標的更多揭露，包括公認會計準則 (GAAP) 與非公認會計準則 (non-GAAP) 的對賬，已包含在我們的季度報告和補充報告中。

With that, let me turn it over to Sandeep.

說完這些，讓我把它交給 Sandeep。

Thanks, Chandler. Before we start, I want to reiterate that WeWork have suspended all expansion plans in Russia and together with our colleagues, members and landlords are executing on divesting operations in the region. Our deepest sympathies go out to the Ukrainian people whom we stand with in solidarity.

謝謝，錢德勒。在開始之前，我想重申一下，WeWork 已暫停在俄羅斯的所有擴張計劃，並正與我們的同事、會員和業主一起，在該地區執行業務剝離計劃。我們向與我們團結一致的烏克蘭人民致以最深切的慰問。

We have been moved by outpouring of support shown from both our members and employees since we announced our partnership with the UN Refugee Agency last week, the partnerships of both refugees across our locations in Eastern Europe as well as providing access for free space in Warsaw, Stockholm, Prague, Hamburg, Frankfurt and Brussels to displaced Ukrainian businesses and nonprofit organizations helping with release efforts.

自從我們上週宣布與聯合國難民署建立合作夥伴關係以來，我們深受會員和員工的支持，我們與東歐各地的難民建立了合作夥伴關係，並為流離失所的烏克蘭企業和非營利組織在華沙、斯德哥爾摩、布拉格、漢堡、法蘭克福和布魯塞爾提供免費空間，以協助開展救援工作。

With that, I will now turn to our financial results for the quarter and fiscal year 2021. For the past year, I opened our earnings call by remarking on some of the different ways in which the pandemic has made WeWork's core product more valuable than ever before. Choice and flexibility are no longer a nice to have but a must have. WeWork has established itself as one of the organizations that is positioned to support our employees today while they work in this hybrid and flexible environment.

好了，現在我將談談我們2021財年及本季的財務表現。過去一年，我在財報電話會議的開場就談到了疫情如何以不同的方式讓WeWork的核心產品比以往任何時候都更有價值。選擇和靈活性不再是錦上添花，而是必須具備的。 WeWork已成為一個致力於在混合辦公室和靈活辦公環境中為員工提供支援的組織。

Before COVID, we saw many companies that drove to enrich on-campus experience as a foundation for the employee culture and recruitment strategy. Throughout the pandemic, we've heard from the organizations that their priority is finding a way to maintain and foster the same sense of culture and connection in a hybrid world.

在新冠疫情爆發之前，我們看到許多公司致力於豐富的校園體驗，並將其作為員工文化和招募策略的基礎。在整個疫情期間，我們從這些公司了解到，他們的首要任務是找到一種方法，在混合的世界中保持和培養相同的文化意識和聯繫。

As companies recognize the need for purposeful engagement and intentional collaboration and design a strategy tailored to the unique needs of their people and businesses, we are seeing a greater shift in flex. CBRE and JLL have projected flex becoming between 13% and 30% of total office in a post-pandemic world in the U.S. alone, which represents a revenue opportunity of between $45 billion and $105 billion from $7 billion in 2019.

隨著企業認識到有目的的參與和有針對性的協作的必要性，並根據員工和企業的獨特需求制定策略，我們看到彈性辦公空間正在發生更大的轉變。世邦魏理仕和仲量聯行預測，光是在美國，疫情後，彈性辦公空間將佔辦公空間總量的13%至30%，這意味著營收機會將從2019年的70億美元增加至450億美元至1,050億美元。

We are seeing these projections play out in real time. Just last month, CBRE's annual report on the state of the flex market reported that over half of those surveys expect to have more than 10% of their real estate portfolio in flexible spaces over the next 2 years. With this in mind, we feel confident that we will continue to lead categories based on several key factors.

我們正在即時見證這些預測的實現。就在上個月，世邦魏理仕發布的關於彈性辦公空間市場狀況的年度報告顯示，超過半數的受訪者預計，未來兩年內，其房地產投資組合中將有超過10%的資金用於靈活辦公空間。有鑑於此，我們有信心，憑藉以下幾個關鍵因素，我們將繼續在各領域保持領先地位。

Our co-working spaces that cater to SMB, which is small and medium businesses, provide both a design environment that fosters engagement and collaboration, technology to power their devices and a hospitality first community team to alleviate the pain points. Our footprint includes established locations in high-demand cities. This puts WeWork in a prime position to provide turnkey solutions in markets that have become magnets for knowledge workers but that also presents barriers to entry with limited inventory, high cost and (inaudible).

我們針對中小企業（SMB）的共同工作空間，不僅提供促進參與和協作的設計環境、支援其設備運作的技術，還擁有一支以熱情好客為先的社區團隊，以緩解客戶的痛點。我們的業務範圍涵蓋了高需求城市的成熟辦公地點。這使得 WeWork 佔據了提供交鑰匙解決方案的有利位置，尤其是在那些吸引知識型員工但又因庫存有限、成本高昂以及（聽不清楚）而面臨進入障礙的市場。

Our flexible spaces focus on high-quality enterprise working spaces at scale. With an average of 70,000 square feet of location, nearly 400 locations with over 50,000 square feet and 130 with over 100,000 square feet, we believe we are the only player who is able to serve enterprise clients at scale.

我們的彈性辦公空間專注於提供規模化的高品質企業辦公空間。我們擁有平均7萬平方英尺（約6,700平方公尺）的辦公空間，近400個辦公空間面積超過5萬平方英尺（約4,700平方公尺），以及130個辦公空間面積超過10萬平方英尺（約9,000平方公尺）。我們相信，我們是唯一一家能夠為企業客戶提供規模化服務的公司。

While remaining focus on our core workplace businesses, we have leveraged the technology we built to further monetize our existing focus. Through our WeWork Access, we have created a product that provides access to the entire WeWork network for our members by serving as an additional monetization opportunity for our existing footprint.

在繼續專注於核心辦公空間業務的同時，我們利用自身累積的技術，進一步將現有業務轉化為商業價值。透過 WeWork Access，我們打造了一款產品，讓會員可以存取整個 WeWork 網絡，為我們現有的業務佈局提供額外的商業化機會。

I'll now turn to our Q4 and fiscal year numbers. The key metrics that we use to measure our business are occupancy, average revenue per membership of month or ARPM, All Access memberships, building margin, adjusted EBITDA and free cash flow. Occupancy is a function of gross desk sales, new desk sales, churn and capacity. ARPM is our price per [seated] membership. All Access memberships is a driver of All Access revenue. Building margin is how we measure the full EBITDA of our open locations. Adjusted EBITDA is how we measure the profitability of our business. And finally, free cash flow net of capital expenditures is a measure of cash generated by our existing business operations.

現在，我將談談我們第四季和財年的數據。我們衡量業務的關鍵指標包括入住率、每月每位會員平均收入 (ARPM)、All Access 會員數量、建築利潤率、調整後息稅折舊攤銷前利潤 (EBITDA) 和自由現金流。入住率由總桌位銷售額、新桌位銷售額、顧客流失率及容量決定。 ARPM 指的是每位會員的單價。 All Access 會員數量是 All Access 收入的驅動因素。建築利潤率是我們衡量所有營業點總 EBITDA 的標準。調整後 EBITDA 是我們衡量業務獲利能力的標準。最後，扣除資本支出後的自由現金流是衡量我們現有業務營運所產生的現金流的標準。

Space-as-a-Service is our core business, the price of co-working space for SMB members and flexible solutions for enterprise companies. Regardless of the size or stage of the company, we offer everything from a single dedicated desk to an office suite, full floor build-out, full building, app or collaboration hubs.

空間即服務是我們的核心業務，為中小企業會員提供價格合理的共享辦公空間，並為大型企業提供靈活的解決方案。無論公司規模大小或發展階段如何，我們都能提供各種服務，從單一專屬工位到辦公套房、整層辦公空間、整棟建築、應用程式或協作中心。

Our fourth quarter results is due to positive momentum that we saw in the third quarter. Systemwide gross desk sales, which includes new desk sales as well as renewals, were 217,000 in the fourth quarter or 13 million square feet. Systemwide new sales were 113,000 in the fourth quarter. On a consolidated basis, gross desk sales of 164,000 in the fourth quarter, which equates to approximately 9.9 million square feet sold. And new desk sales were 87,000.

我們第四季的業績得益於第三季的正面動能。第四季度，全系統總辦公桌銷售量（包括新辦公桌銷售和續訂辦公桌銷售）為21.7萬張，相當於1300萬平方英尺。第四季全系統新辦公桌銷售量為11.3萬張。合併後，第四季總辦公桌銷售量為16.4萬張，相當於約990萬平方英尺。新辦公桌銷售量為8.7萬張。

For the full year 2021, consolidated gross desk sales were 593,000 or returned to 35.6 million square feet, which represented an increase of 40% compared to the full year 2020. As we have said in the past few quarters, flex office and WeWork in particular, has taken an outsized share of the market demand. In 2021, WeWork represented approximately 0.5% of all commercial states in the United States, yet made up the equivalent of 9% of the square feet leased in the year.

2021年全年，合併總辦公桌銷售量為59.3萬張，面積回升至3,560萬平方英尺，較2020年全年增長40%。正如我們在過去幾季所指出的，靈活辦公空間，尤其是WeWork，佔據了巨大的市場需求份額。 2021年，WeWork約占美國所有商業辦公空間的0.5%，但其租賃面積卻相當於當年租賃面積的9%。

At the market level, WeWork 2021 gross sales in Manhattan were equivalent to 16% of the traditional office market leasing on a square foot basis while WeWork's portfolio of 5 million square feet accounts for approximately 1% of the total office stock. WeWork leasing activity represented 17% of Boston take up, 13% of San Francisco, 14% of Miami despite representing 2% or less of the total office stock in each of those markets.

從市場層面來看，WeWork 2021年在曼哈頓的總銷售額相當於傳統辦公大樓市場租賃面積的16%，而WeWork 500萬平方英尺的投資組合約佔辦公大樓總存量的1%。 WeWork 的租賃活動佔波士頓、舊金山和邁阿密辦公大樓總存量的17%、13%和14%，儘管這些市場中WeWork的租賃活動僅佔2%或更少。

The same is true internationally. WeWork represented approximately 0.5% of commercial office space in our European market yet solely equivalent of 8% of the total square feet leased in 2021. WeWork's gross sales equated to 39% of London's traditional office leasing market that is the leading shift to flex, 34% to Dublin, 8% of Paris and 6% of Berlin.

國際市場也是如此。 WeWork 在我們歐洲市場的商業辦公空間中約佔 0.5%，但僅相當於 2021 年租賃總面積的 8%。 WeWork 的銷售額相當於倫敦傳統辦公室租賃市場的 39%，該市場正朝著彈性辦公室模式轉變，WeWork 的銷售額相當於都柏林市場的 34%，巴黎市場的 8%，柏林市場的 6%。

Our commitment length for SMB clients has been 14 months in the fourth quarter, and the average commitment term for enterprise was 27 months. Across SMB and enterprise clients, our average commitment length was 20 months.

第四季度，我們對中小企業客戶的承諾期限為14個月，對大型企業的平均承諾期限為27個月。對於中小企業和大型企業客戶，我們的平均承諾期限為20個月。

Churn was 3.4% in the fourth quarter, below our pre-pandemic churn levels of around 4.5%. On a systemwide basis, we ended the fourth quarter with 912,000 workstations across 756 locations and 590,000 physical members. On a consolidated basis, we accounted for 746,000 workstations across 624 locations and 469,000 physical members as of December, a quarter-over-quarter increase of 9% and a year-over-year increase of 21%.

第四季客戶流失率為3.4%，低於疫情前約4.5%的客戶流失率。截至第四季末，我們全系統在756個地點擁有91.2萬個工作站，實體會員59萬名。截至12月，合併後我們在624個地點擁有74.6萬個工作站，實體會員46.9萬名，季增9%，年增21%。

Physical occupancy was 63% at the end of the quarter, a 7 percentage point increase in Q3. If we include the 21,000 net memberships that were already contracted to move in, our physical occupancy, including signed but not occupied members, would increase to 66% as of the year-end 2021.

本季末，實體入住率為63%，較第三季成長7個百分點。若算上已簽約入住的2.1萬名淨會員，截至2021年底，我們的實體入住率（包括已簽約但尚未入住的會員）將上升至66%。

The other side of the revenue equation is pricing. We counted the physical memberships, ARPM, by taking memberships and service revenues on the income statement and removing revenue attributable to All Access and on-demand memberships and management fees of our unconsolidated joint ventures. This is then divided by the sum of the ending memberships in each of the 3 months of the quarter.

收入等式的另一邊是定價。我們計算實體會員人數（ARPM）的方式是，將損益表中的會員人數和服務收入扣除歸屬於All Access和按需會員的收入以及我們未合併合資企業的管理費。然後，用該數值除以該季度每個月期末會員人數的總和。

In the fourth quarter, revenue from physical membership was $665 million, and average physical memberships were 458,000, translating to a membership ARPM of $484. Once again, an average physical membership over the 3-year period was $458, which the year-end was 469,000.

第四季度，實體會員收入為6.65億美元，平均實體會員人數為45.8萬，相當於會員平均每千美元收入（ARPM）為484美元。三年期間的平均實體會員人數為458美元，年底為46.9萬人。

As of Q4 2021, our ARPM in the U.S. and Canada was $538, and ARPM across international operations was $536. In the U.S. and Canada, ARPM increased 5% in the year. And across international, ARPM increased 2% in the year. These 2 regions combined represent 94% of our revenues on an ownership weighted basis.

截至2021年第四季度，我們在美國和加拿大的ARPM為538美元，國際業務的ARPM為536美元。在美國和加拿大，ARPM全年成長了5%。在國際業務中，ARPM全年成長了2%。以所有權加權計算，這兩個地區合計占我們收入的94%。

Our ARPM in Japan and LatAm was $737 and $199, respectively. The increase in physical membership and All Access revenue and stabilization of ARPM resulted in a total revenue of $718 million in the fourth quarter, up 9% from $666 million in the third quarter.

我們在日本和拉丁美洲的每千美元收入分別為7.37美元和1.99美元。實體會員和All Access收入的成長，以及每千美元收入的穩定，使得第四季總收入達到7.18億美元，較第三季的6.66億美元成長9%。

Looking forward to 2022, it's important to call out the expected embedded growth in our ARPM. As discounted membership agreements we signed during the pandemic come up to renewal, we have been able to mark those to renewing rates to market, creating a revenue tailwind in our existing membership base. Of the member agreements that was signed in 2021, approximately 140,000 memberships are up for renewal in the U.S. and international regions in 2022, [pushing] the ARPM approximately to $40 million of embedded additional annual revenue at a 5.5% higher than our Q4 physical membership ARPM of $484. On a base of 469,000 members, a $10 increase in ARPM translates to an increase in annual revenues of about $56 million all else equal. Similarly, each additional percentage point of occupancy equates to a $44 million increase in annual revenue.

展望2022年，重要的是要強調我們ARPM（每日平均收入）的預期內生成長。隨著疫情期間簽訂的折扣會員協議即將續訂，我們能夠將其調整至市場續訂價格，從而為現有會員群體帶來收入成長。在2021年簽訂的會員協議中，美國及國際地區約有14萬個會員資格將於2022年到期，這將推動ARPM（每日平均收入）達到約4000萬美元的內生額外年收入，比我們第四季實體會員ARPM（484美元）高出5.5%。以46.9萬名會員為基礎，ARPM每增加10美元，在其他條件相同的情況下，年收入將增加約5,600萬美元。同樣，入住率每增加一個百分點，年收入將增加4,400萬美元。

Given our pre-pandemic Q4 2019 ARPM of $542 and our mature buildings operated at 88% physical occupancy levels in 2019, we believe there's ample room to materially increase pricing and occupancy from current levels. As we've said before, we have spent the past 2 years rationalizing our cost structure and have now cut our expenses by over $2.6 billion on an annualized basis since Q4 2019.

鑑於我們2019年第四季疫情前的平均每日租金（ARPM）為542美元，且我們成熟的樓盤在2019年的實體入住率達到88%，我們認為仍有充足的空間大幅提升價格和入住率。正如我們之前所說，過去兩年我們一直在合理化成本結構，自2019年第四季以來，我們已按年率計算削減了超過26億美元的支出。

We reduced annualized rent and tenancy expenses by about $500 million by exiting over 210 buildings and renegotiating an additional 430 leases. We have also saved $600 million in annual location operating expenses by reviewing building operations, energy management systems and the like, and have reduced SG&A by over $1.5 billion from fourth quarter 2019.

我們透過出售超過210棟建築並重新協商了另外430份租約，將年度租金和租賃支出減少了約5億美元。我們也透過審查建築營運、能源管理系統等措施，節省了6億美元的年度營運支出，自2019年第四季以來，銷售、一般及行政費用（SG&A）減少了超過15億美元。

We wanted to provide an update on building margins, which we see as a major stepping stone to profitability and affirmation of the meaningful progress we've made. Building margin's how we measure the core EBITDA of our open locations. We calculate building margin by taking consolidated membership and service revenue excluding the management fees and then subtracting EV stocks, which are rent and tenancy stocks or rent tenant taxes in the U.S. and direct location operating expenses, which are consumables, cleaning and include our on-site staff.

我們想更新建築利潤率，我們認為這是邁向獲利能力的重要基石，也是對我們所取得的重大進展的肯定。建築利潤率是我們衡量現有門市核心息稅折舊攤提前利潤 (EBITDA) 的標準。我們計算建築利潤率的方法是：將合併會員和服務收入（不含管理費）減去 EV 存量（即美國的租金和租賃存量或租金租戶稅）以及直接門市營運費用（包括消耗品、清潔費用和現場工作人員費用）。

Building margin was negative $9 million in the fourth quarter, a $94 million improvement quarter-over-quarter and $174 million improvement year-over-year. We continue to see sequential improvements in our building margins, and we were building margin positive in the month of December for the first time since the start of the pandemic.

第四季建築利潤率為負900萬美元，季增9,400萬美元，較去年同期改善1.74億美元。我們的建築利潤率持續改善，12月份建築利潤率自疫情爆發以來首次轉正。

Because of the inherent operating leverage in the business, we expect building class would be improved with increase in physical occupancy and pricing as we tightly manage our largely fixed direct location operating expenses.

由於業務中固有的營運槓桿，我們預計，隨著我們嚴格管理基本固定的直接位置營運費用，建築等級將隨著實際入住率和定價的提高而得到改善。

With us at this point, at the end of the fourth quarter, 33 markets were greater than 70% occupied, up from 21 in the third quarter and 6 in the first quarter of 2021. The average occupancy of these 33 markets is 82%, and their average building margin is 28%.

截至目前，第四季末，33 個市場的入住率超過 70%，高於第三季的 21 個和 2021 年第一季的 6 個。這 33 個市場的平均入住率為 82%，平均建築利潤率為 28%。

Some of the markets in this tier include (inaudible) Silicon Valley, Miami, Vancouver and Singapore. Of the 33 markets, we had 7 markets that had greater than 90% occupancy including cities such as Miami, [Dublin], Nashville and Munich. These 7 markets had an average occupancy of 94% and a building margin of 41%.

這一級的市場包括（聽不清楚）矽谷、邁阿密、溫哥華和新加坡。在這33個市場中，有7個市場的入住率超過90%，包括邁阿密、[都柏林]、納許維爾和慕尼黑等城市。這7個市場的平均入住率為94%，建築利潤率為41%。

What is the (inaudible) breakeven is the group of markets that are in the 60% to 70% occupancy rate that are poised to grow over 70% in the first half of this year. There are 16 markets in this tier, including some of our largest markets such as New York, London, Paris and San Francisco.

（聽不清楚）損益平衡點指的是入住率在60%到70%之間，預計今年上半年將成長超過70%的市場。這一級別有16個市場，包括我們一些最大的市場，例如紐約、倫敦、巴黎和舊金山。

Looking at the total center market at 60% occupancy or greater, these markets represent 63% of our total desk capacity, up from 43% in the third quarter and 72% of our membership and service revenue in the fourth quarter.

從入住率達到或超過 60% 的整個中心市場來看，這些市場占我們總服務台容量的 63%，高於第三季的 43% 和第四季的會員和服務收入的 72%。

Our WeWork All Access offering, which is used both monthly subscription All Access and pay-as-you-go on-demand products, continue to see demand as companies turn to WeWork Access to create a global office solution. We launched the Access product during the pandemic as another way to enhance our existing product to better meet the needs of our customers.

我們的 WeWork All Access 產品包括按月訂閱的 All Access 和按需付費的按需產品。隨著眾多企業選擇 WeWork Access 來打造全球辦公室解決方案，該產品的需求持續成長。疫情期間，我們推出了 Access 產品，旨在進一步增強現有產品，以更好地滿足客戶的需求。

The product is similar to a gym membership model, where we are able to sell a larger number of offices with the desk capacities in our spaces. In this way, the product set is another way to monetize our physical footprint at high margin while also providing a complementary and synergistic product to existing dedicated space users.

該產品類似於健身房會員模式，我們可以出售更多包含辦公桌容量的辦公室。透過這種方式，該產品組合是另一種以高利潤率將實體空間貨幣化的方式，同時也為現有的專用空間使用者提供了一種互補且具有協同效應的產品。

Access membership also drive additional ancillary service revenues such as conference room bookings. All Access memberships have grown to 45,000 members as of December 2021, an increase of 41% quarter-over-quarter. As of the fourth quarter, All Access ARPM was approximately $230 per month, and we have achieved a run rate revenue of approximately $120 million.

Access 會員也能帶來額外的輔助服務收入，例如會議室預訂。截至 2021 年 12 月，All Access 會員數已增至 4.5 萬名，季增 41%。截至第四季度，All Access 平均每日收入 (ARPM) 約為每月 230 美元，我們實現了約 1.2 億美元的運行率收入。

All Access represent an additional 6 percentage points of occupancy, including physical members, memberships signed but not occupied members and Access memberships with a total occupancy to 72% at year-end 2021.

All Access 會員入住率將額外提升 6 個百分點，包括實體會員、已簽約但尚未入住的會員以及 Access 會員，2021 年底的總入住率將達到 72%。

Finally, we remain excited about the opportunity we have with our WeWork Workplace Management software, which leverages the proprietary software we build with our WeWork global portfolio. We continue to hear from members, companies, that they lack a universal platform that serves their hybrid work environment. WeWork is working to answer this need.

最後，我們對 WeWork 工作場所管理軟體帶來的機會依然感到興奮，該軟體充分利用了我們為 WeWork 全球產品組合構建的專有軟體。我們不斷聽到會員和公司反映，他們缺乏一個能夠服務混合工作環境的通用平台。 WeWork 正在努力滿足這項需求。

WeWork Workplace makes hybrid work possible by enabling employees of both desk, mediums and the collaboration hub across a single platform that is owner and operator-agnostic. By empowering employees with choice, control and an optimized work experience, Workplace can drive employee productivity, collaboration, engagement and ultimately retention.

WeWork Workplace 讓員工能夠透過一個不受所有者和營運商限制的平台，同時使用辦公桌、各種媒介和協作中心，從而實現混合辦公室。透過賦予員工選擇權、控制權和優化的工作體驗，Workplace 可以提高員工的工作效率、協作能力、參與度，並最終留住員工。

Workplace also supports employers in managing their space and optimizing their portfolios through data and analytical insights so they can make tactical choices regarding the location, type and size of office they need, thereby closing the feedback loop. In the second half of 2021, we announced partnership with landlords and operators like Ivanhoé Cambridge to power their old flexible space solutions.

Workplace 也透過數據和分析洞察，幫助雇主管理空間並優化投資組合，使他們能夠根據所需辦公室的位置、類型和規模做出策略性選擇，從而形成完整的回饋循環。 2021 年下半年，我們宣布與 Ivanhoé Cambridge 等業主和營運商合作，為其傳統的靈活空間解決方案提供支援。

At the end of the year, we signed our first WeWork Workplace enterprise client with Organon, a global health care company, to action their boundary-less workplace strategy across locations in 34 cities that are a mixture of WeWork locations, own locations and non-WeWork locations.

年底，我們與全球醫療保健公司 Organon 簽署了我們的第一個 WeWork Workplace 企業客戶，以在 34 個城市的地點實施其無邊界工作場所策略，這些地點包括 WeWork 地點、自有地點和非 WeWork 地點。

Finally, I want to spend a minute talking about the transaction we recently announced with Common Desk and Upflex, both of which fall within our strategy of selectively consolidating within the flex space, where we see accretive and asset-light opportunities with good operators with whom we have both a product and cultural fit. In early 2020, we completed a strategic acquisition of Common Desk, a Dallas-based co-working operator. Founded in 2012, Common Desk operates 23 locations in Texas and North Carolina, 19 of which are asset-light management agreements with landlords.

最後，我想花一點時間談談我們最近宣布的與 Common Desk 和 Upflex 的交易。這兩家公司都符合我們在靈活辦公空間領域選擇性整合的策略，我們在該領域看到了與優秀的營運商合作的增值和輕資產機會，這些營運商與我們在產品和文化上都契合。 2020 年初，我們完成了對總部位於達拉斯的共享辦公室營運商 Common Desk 的策略性收購。 Common Desk 成立於 2012 年，在德克薩斯州和北卡羅來納州運營 23 個辦公地點，其中 19 個與業主簽訂了輕資產管理協議。

The total deal consideration was $26 million, comprised of 50% cash and 50% stock at a $10 per share price. The transaction is accretive from day 1, and we welcome Nick Clark to the WeWork family and his colleagues.

交易總對價為2600萬美元，其中50%為現金，50%為股票，每股價格為10美元。交易自第一天起即產生增值效應，我們歡迎尼克克拉克加入WeWork大家庭及其團隊。

Upflex. In February, we completed a $5 million strategic investment and partnership with Upflex, a platform that aggregates over 4,800 co-working locations around the world. Through our partnership, WeWork will have the exclusive ability to reset Upflex inventory of third-party spaces and offer our Access customers an expanded number of workplace options by offering bookings access to Upflex.

Upflex。今年2月，我們完成了與Upflex的500萬美元策略投資與合作。 Upflex是一個聚合了全球超過4800個共享辦公空間的平台。透過此次合作，WeWork將擁有獨家權利，可重設Upflex的第三方空間庫存，並透過提供Upflex的預訂權限，為我們的Access客戶提供更多辦公空間選擇。

Looking to the future, we see this partnership as a benefit that provides more optionality in location choices and as a technology integration that will allow us to develop and sell new medium-price products that leverage Upflex's expanded scale across this network. We will continue to look opportunistically at acquisitions and transactions like this to scale the business in a cost-effective and asset-light manner.

展望未來，我們認為此次合作將帶來諸多優勢，包括提供更多地點選擇上的選擇，以及技術整合，使我們能夠利用 Upflex 在整個網路的擴張規模，開發和銷售新的中等價位產品。我們將繼續積極尋找此類收購和交易機會，以經濟高效且輕資產的方式擴大業務規模。

Now I'd like to turn it over to Ben to walk you through our fourth quarter financial results.

現在我想讓本向大家介紹一下我們第四季的財務表現。

Thanks, Sandeep. Fourth quarter revenue of $718 million increased $57 million or 9% quarter-over-quarter driven by a 9% increase in physical memberships and a 44% increase in Access revenue. Adjusted location operating expenses, which includes both lease costs and other location operating expenses, was $729 million in the fourth quarter, representing a decrease of $23 million versus the prior quarter driven by lower lease costs. It was also a decrease of $84 million or 11% compared to Q4 2020.

謝謝，Sandeep。第四季營收為7.18億美元，季增5700萬美元，成長9%，這得益於實體會員數量成長9%以及Access營收成長44%。調整後的門市營運費用（包括租賃成本和其他門市營運費用）在第四季為7.29億美元，較上一季減少2,300萬美元，主要原因是租賃成本下降。與2020年第四季相比，也減少了8,400萬美元，降幅11%。

Lease costs, effectively our rent and tenancy costs for open locations, was $587 million in the fourth quarter, and other location operating expenses were $146 million. As a reminder, location operating expenses include the impact of noncash straight-line lease cost and tenant improvement allowances in accordance with U.S. GAAP.

第四季租賃成本（實際上是我們開放門市的租金和租期成本）為5.87億美元，其他門市營運費用為1.46億美元。需要提醒的是，根據美國公認會計準則，門市營運費用包含非現金直線租賃成本和租戶裝修津貼的影響。

Adjusted building margin was negative $9 million in the fourth quarter, a $94 million improvement quarter-over-quarter and a $174 million improvement year-over-year. As Sandeep mentioned, we are pleased to report that building margin crossed the positive territory in December for the first time since the pandemic. You can find further information regarding building margin in our supplemental presentation on the Investor Relations section of our website.

第四季調整後建築利潤率為負900萬美元，季增9,400萬美元，較去年同期改善1.74億美元。正如Sandeep所提到的，我們很高興地報告，建築利潤率在12月首次突破正值，這是疫情爆發以來的首次。您可以在我們網站「投資者關係」版塊的補充簡報中找到更多關於建築利潤率的資訊。

Excluding stock-based compensation and certain nonrecurring expenses, SG&A was $230 million in the fourth quarter, slightly higher relative to the third quarter due to onetime stock-related compensation. Adjusted EBITDA showed further improvement in the fourth quarter driven by our sequential increase in revenue and continued focus on managing our cost structure.

扣除股票薪酬及某些非經常性費用後，第四季銷售、一般及行政費用（SG&A）為2.3億美元，由於一次性股票相關薪酬的影響，較第三季度略有上升。由於收入環比增長以及我們持續注重成本結構管理，第四季度調整後EBITDA進一步改善。

Adjusted EBITDA loss was $283 million, which is a $73 million improvement relative to the prior quarter and a $189 million improvement relative to Q4 2020. Net loss was $803 million in the quarter, which was an improvement relative to the prior quarter and the fourth quarter of 2020.

調整後 EBITDA 虧損為 2.83 億美元，較上一季減少 7,300 萬美元，較 2020 年第四季減少 1.89 億美元。本季淨虧損為 8.03 億美元，較上一季及 2020 年第四季有所改善。

The key component to bridging from adjusted EBITDA to net loss in the fourth quarter includes $195 million of net restructuring and impairment expense related to the write-off of lease right-of-use assets associated with our portfolio rationalization activities, $174 million of depreciation and amortization, $103 million in interest and other expenses and $48 million in stock-based compensation associated with the closing of the business combination with (inaudible) in the fourth quarter.

第四季從調整後 EBITDA 轉為淨虧損的關鍵因素包括與投資組合合理化活動相關的租賃使用權資產註銷相關的 1.95 億美元淨重組和減值費用、1.74 億美元的折舊和攤銷、1.03 億美元的利息和其他費用以及與第四季度與薪酬合併相關的股票（聽不清）完成業務合併相關的 4800 萬美元。

We reported free cash flow of negative $467 million. Operating cash flow was negative $373 million, and gross CapEx expenditures were $94 million for the fourth quarter of 2021. Net CapEx was a $3 million inflow in the fourth quarter when you account for the $98 million of tenant allowances that we received in the fourth quarter.

我們報告的自由現金流為負4.67億美元。 2021年第四季，經營現金流為負3.73億美元，總資本支出為9,400萬美元。如果算上第四季收到的9,800萬美元租戶補貼，第四季淨資本支出為300萬美元。

I'll now discuss our balance sheet and liquidity. We ended the year with approximately $2 billion in cash and unfunded cash commitments. This includes approximately $924 million of available cash on hand, $550 million available on our senior secured note facility and an additional $500 million of letter of credit facility capacity.

現在我將討論我們的資產負債表和流動性。截至本財年，我們持有約20億美元的現金和未撥付的現金承諾。其中包括約9.24億美元的可用現金、5.5億美元的優先擔保票據融資以及5億美元的信用狀融資。

I'll now turn it back over to Sandeep for some comments before we open the line for Q&A.

在我們開始問答環節之前，我現在將話題交還給 Sandeep 徵求一些評論。

Thanks, Ben. Looking forward, we expect first quarter revenue to be between $740 million and $760 million at a midpoint of $750 million. As approximately 20% of the desk sold moving within 1 month of the contracting signed and 60% moving between 30 to 60 days after the sale, we also have a high level of visibility into our second quarter revenue.

謝謝，Ben。展望未來，我們預計第一季營收將在7.4億美元至7.6億美元之間，中位數為7.5億美元。由於約20%的辦公桌在合約簽訂後1個月內完成交付，60%的辦公桌在合約簽訂後30至60天內完成交付，因此我們對第二季營收的預期也具有很高的可預見性。

We expect second quarter revenue to be between $775 million and $825 million at a midpoint of $800 million. Over 90% of our second quarter revenue is committed to date, which gives us a high level of confidence to achieve these numbers.

我們預計第二季營收將在7.75億美元至8.25億美元之間，中位數為8億美元。截至目前，我們第二季超過90%的營收已得到承諾，這讓我們對實現這些目標充滿信心。

For the full year, we expect to achieve $3.8 billion to $4 billion of systemwide revenue and $3.35 billion to $3.5 billion of consolidated revenue for the full year. Taking the midpoint of our consolidated range, that gets you to between $900 million to $1 billion of revenue in Q3 and Q4 each, which is a range we become adjusted EBITDA positive at a revenue level that we have enjoyed in Q4 2019 and Q1 2020.

我們預計全年全系統收入將達到 38 億至 40 億美元，合併收入將達到 33.5 億至 35 億美元。以合併收入區間的中間值計算，第三季和第四季的營收將分別達到 9 億至 10 億美元，在此範圍內，我們將實現調整後 EBITDA 正值，營收水準與 2019 年第四季和 2020 年第一季持平。

We also have high level of visibility to the back half of the year as our commitment lands for both SMB and enterprise is an average of 20 months. So today, we have nearly 60% of the revenue committed for Q3 and Q4. Over the course of the year, we anticipate spending approximately $100 million of net growth CapEx to bring an additional 30,000 to 35,000 desks online in 2022. We expect ending the year with 760,000 to 780,000 desks.

我們對下半年的業績也具有很高的可預見性，因為我們對中小企業和大型企業的合約承諾平均為20個月。因此，目前我們已承諾第三季和第四季的營收將接近60%。我們預計全年將投入約1億美元的淨成長資本支出，用於2022年新增3萬至3.5萬張辦公桌。我們預計到年底，辦公桌數量將達到76萬至78萬張。

In addition, we expect to spend about $100 million in maintenance CapEx this year. Our 2022 beginning cash balance and available liquidity of $1.974 billion adjusted for the midpoint of our adjusted EBITDA guidance of $450 million negative, $240 million of interest and $200 million of net CapEx will give us total liquidity of approximately $1.1 billion at the end of 2022. I am confident that our current revenue visibility, cost structure and right team in place, we are well positioned to meet our targets.

此外，我們預計今年的維護資本支出約為1億美元。我們2022年的期初現金餘額和可用流動資金為19.74億美元，根據我們調整後的EBITDA指引的中點（4.5億美元負值、2.4億美元的利息和2億美元的淨資本支出）進行調整，到2022年底，我們的總流動資金將達到約11億美元。我相信，憑藉我們目前的收入可見度、成本結構和合適的團隊，我們完全有能力實現目標。

Shifting topics, I'm excited to expand on some of WeWork's ESG efforts. Our environmental efforts focus on key areas, including energy efficiency, achieving carbon neutrality, minimizing waste, reducing water consumption and improving the supply chain.

換個話題，我很高興能進一步闡述 WeWork 在 ESG 方面的一些努力。我們的環境工作重點關注幾個關鍵領域，包括能源效率、實現碳中和、減少浪費、減少用水量以及改善供應鏈。

Our aim is to use 100% renewable energy. We are reducing the energy we use to light, heat, cool and power our spaces and source green electricity. We are reducing our carbon footprint by minimizing waste, increasing our recycling and composting rates and reducing consumption of water. Overall, these efforts continue to point us in the right direction as a sustainable business.

我們的目標是100%使用再生能源。我們正在減少照明、暖氣、冷氣和供電的能源消耗，並積極採購綠色電力。我們透過減少浪費、提高回收和堆肥率以及減少用水量來減少碳足跡。總而言之，這些努力將引領我們朝著永續發展的方向前進。

I'd be remiss if I did not end by thanking Marcelo Claure, who recently stepped down from his role at SoftBank and subsequently from his position as Chairman of WeWork's Board. I personally am grateful for his relentless support, partnership and leadership over the last 2 years. WeWork wouldn't be where it is today if it was not for his efforts. I wish him the best of luck in his next chapter.

最後，如果我不感謝馬塞洛·克勞雷（Marcelo Claure），那真是太失職了。他最近辭去了軟銀的職務，隨後又辭去了WeWork董事會主席的職務。我個人非常感謝他在過去兩年給予我的不懈支持、合作和領導。如果沒有他的努力，WeWork就不會擁有今天的成就。我祝他在新的篇章中一切順利。

With that, operator, please open up the line to questions.

接線員，請打開熱線來回答問題。

(Operator Instructions) And your first question comes from the line of Karru Martinson from Jefferies.

（操作員指示）您的第一個問題來自 Jefferies 的 Karru Martinson。

When you look at the year, how much do you feel that the Omicron variant for COVID pushed back your outlook for 2022?

回顧這一年，您覺得 COVID 的 Omicron 變體在多大程度上推遲了您對 2022 年的展望？

I think if you include both Delta and Omicron, it pushed it back a quarter or 2.

我認為如果將 Delta 和 Omicron 都算上，它會推遲四分之一或二分之一。

Okay. And then when you look at the $100 million of growth CapEx planned, is that going to flow through those 7 markets like Miami, where you're running north of 90%? Or is that broadly spread out across the platform?

好的。那麼，當您看到計劃中的1億美元成長資本支出時，這些資金會流向邁阿密等7個市場嗎？邁阿密的市場佔比超過90%。還是會廣泛分佈在整個平台上？

No, it's actually spread out in the markets that we are 70% or better occupied. So it is in those markets where we have high occupancy and demand. You appreciate that when we close a whole lot of locations in this process, there were many locations that were not built. And so we gave those back.

不，實際上，這些業務分佈在我們入住率達到或超過70%的市場。也就是說，這些業務分佈在入住率和需求都很高的市場。你明白，在這個過程中，我們關閉了大量門市，也有很多門市尚未開業。所以我們把這些門市退還了。

We only kept the ones where we had a high degree of either occupancy or we had pre-committed commitments from enterprise clients. So these assets will come online fairly well leased.

我們只保留那些入住率高或已獲得企業客戶預先承諾的辦公空間。因此，這些資產上線後租賃情況會相當好。

Okay. And then when we look at the roughly $1 billion EBITDA improvement here for 2022, what are we assuming in the guidance for average revenue per member?

好的。那麼，當我們考慮2022年約10億美元的EBITDA成長時，我們對每位會員平均收入的預期是什麼？

So it's $484 plus 3%, so close to $500 ARPM.

因此，它是 484 美元加上 3%，接近 500 美元 ARPM。

Okay. And then just switching gears here to the liquidity. What's the cash needed for you guys to kind of run your business? What do you need to keep on the balance sheet? And how should we think about tapping those secured notes or the lines of credit as we go forward through the year?

好的。接下來我們來談談流動性問題。你們經營業務需要多少現金？資產負債表上需要記錄哪些內容？在接下來的一年裡，我們應該如何考慮動用這些擔保票據或信用額度？

The working capital needs, we look at about $250 million.

我們預計營運資金需求約 2.5 億美元。

Okay. And then just in terms of tapping the lines of credit for you guys?

好的。那麼，就為你們提供信用額度而言呢？

I think it's a timing issue again. So we do have almost $2 billion of liquidity. And when you account for the $450 million of negative EBITDA for the year, interest and CapEx, we get to $1.1 billion. So it's really a timing issue. We may or may not have it.

我認為這又是一個時機問題。我們確實有近20億美元的流動資金。如果算上今年4.5億美元的負EBITDA、利息和資本支出，我們的流動資金只有11億美元。所以這真的是一個時機問題。我們可能拿到，也可能拿不到。

(Operator Instructions) Your next question comes from the line of Sam McGovern from Credit Suisse.

（操作員指示）您的下一個問題來自瑞士信貸的 Sam McGovern。

Just following up on Karru's question around the Omicron impact. Obviously, that's impacting 2022 guidance. How should we think about 2024 guidance? Is that still relevant?

我只是在跟進Karru關於Omicron影響的問題。顯然，這會影響2022年的業績指引。我們該如何看待2024年的業績指引？這是否仍然有意義？

2024, is that correct?

2024，對嗎？

Yes, that's right.

是的，沒錯。

Yes. I would mean again, there's a smile on my face, I would expect that the guidance reverts back by 2023 to a normalized rate because we do get to the end of the year with a $1 billion run rate that we shouldn't -- we haven't -- we're not providing guidance for 2023. But we should start to get back to the normal run rate.

是的。我的意思是，我臉上再次露出了笑容，我預計到2023年，指導值將恢復到正常水平，因為我們到年底的運營率確實達到了10億美元，但我們不應該——我們沒有——我們沒有提供2023年的指導。但我們應該開始恢復正常的營運率。

Okay. Got it. And then can you remind us at what level of EBITDA you expect to get to a free cash flow breakeven level?

好的。明白了。那麼，您能否提醒我們一下，您預期 EBITDA 達到什麼水準才能達到自由現金流損益兩平？

It's really -- we do not expand because we don't intend to do anything but asset-light deals going forward. We do have in our pipeline about another 50,000 desks, that will lease to sign that we want to keep the lease sign in 2018 and 2019. So we will need a little bit of CapEx for that in 2023. So we do think to get to free cash flow, you need to be about $4.5 million of revenue.

確實如此——我們不會擴張，因為我們未來只打算做輕資產交易。我們目前還有大約5萬張辦公桌，這些辦公桌將以租賃合約的形式出售，我們希望在2018年和2019年保留這些租賃合約。因此，2023年我們需要一些資本支出。因此，我們認為要獲得自由現金流，收入需要達到450萬美元左右。

Okay. Got it. That's helpful. And then you posted last week that you're not currently looking at an equity offering at this time. How do you think about your preference for additional debt versus equity to bolster your liquidity as you get to that future profitability? And how much additional debt capacity do you guys believe you have under the current docs?

好的。明白了。這很有幫助。然後你上週發文說，目前暫時沒有考慮發行股票。為了在未來實現獲利，為了增強流動性，你更傾向於透過發行額外債務還是發行股票來增加流動性？根據目前的文件，你們認為公司有多少額外債務的負擔能力？

So exactly, you're right, we have no intent to issue equity. We were never in the market to have a broader equity issuance. And so I want to reaffirm that. There was a strategic who approached us to make a $100 million investment at a substantial premium through the closing part of Thursday. So we were never in the market.

所以，你說得對，我們確實沒有發行股票的意圖。我們從未在市場上進行過更大規模的股票發行。所以我想重申這一點。週四收盤時，有一位策略投資者與我們接洽，希望以大幅溢價投資1億美元。所以我們從來沒有進入過這個市場。

And unfortunately, during the trading day, we were prevented from responding to market rumors. So I want to clear the air. Again, we would only issue equity at a premium to where the PIPE investors came in, and we've only issued if there was a use for equity. We don't intend to increase the indebtedness of the company between the LC facility and the senior secured, it's about $1.50 billion.

不幸的是，在交易日期間，我們無法回應市場傳言。所以我想澄清一下。再次強調，我們只會以高於PIPE投資者入市價的價格發行股票，而且只有在需要股票的情況下才會發行。我們不打算增加公司在信用證貸款和優先擔保貸款之間的債務，目前約為15億美元。

If anything, we may replace the LC capacity with senior secured, but it will be more of a mix than anything else. And per our documents, we have the ability to put up $1 billion of senior secured, which we haven't tapped yet.

無論如何，我們可能會用優先擔保貸款來取代信用證貸款，但這將是一種混合貸款。根據我們的文件，我們有能力提供10億美元的優先擔保貸款，但我們尚未動用這筆資金。

And there are no further questions at this time. I'd like to turn the call back over to Mr. Sandeep for some closing remarks.

現在沒有其他問題了。我想把電話轉回給桑迪普先生，請他做最後發言。

In closing, I want to express how pleased I am with our performance and all we have accomplished in 2021. Looking at the market at the macro level in a world with much uncertainty, our product becomes even more valuable. Our rents are fixed, which is beneficial to WeWork in an inflationary market where real estate rates typically rise. And our current rates are at or below market.

最後，我想表達一下，我對我們在2021年的業績和所取得的成就感到非常滿意。從宏觀角度來看，在一個充滿不確定性的世界裡，我們的產品更有價值。我們的租金是固定的，這在通貨膨脹的市場中對WeWork有利，因為房地產價格通常會上漲。我們目前的租金與市場價格持平或低於市場價格。

Our spaces are prebuilt. It prevents clients from experiencing supply chain issues or inflated construction and build-out expenses. And our product includes on-site staffing and consumables. We are a turnkey solution for immediate occupancy. Our progress to date would not have been possible without the tremendous work of our employees and the support of our global community.

我們的空間均為預建式，可避免客戶遇到供應鏈問題或建築和擴建費用過高的問題。我們的產品包含現場人員配備和耗材。我們提供即時入住的交鑰匙解決方案。如果沒有員工的辛勤工作和全球社區的支持，我們不可能有今天的成就。

Thank you to everyone for joining today. Be safe and be human, and be kind to one another. Thank you.

感謝大家今天的參與。注意安全，保持人性，善待彼此。謝謝大家。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您可以掛斷電話了。