WeWork Inc (WE) 2023 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the WeWork Q2 2023 Earnings Call. I would now like to turn the call over to Kevin Berry. Please go ahead.

女士們、先生們，感謝大家的支持，歡迎參加 WeWork 2023 年第二季財報電話會議。我現在想把電話轉給凱文貝裡。請繼續。

Thank you, Mandeep. Welcome, everyone, to WeWork's Second Quarter 2023 Earnings Conference Call. During this call, we will refer to our earnings press release and Form 10-Q filed yesterday with the SEC and is available in the Investors section of our website. This discussion may include forward-looking statements that are subject to various risks and uncertainties that may materially impact our future financial results.

謝謝你，曼迪普。歡迎大家參加 WeWork 2023 年第二季財報電話會議。在本次電話會議中，我們將參考我們的收益新聞稿和昨天向 SEC 提交的 10-Q 表格，該表格可在我們網站的投資者部分取得。本討論可能包括前瞻性陳述，這些陳述受到各種風險和不確定性的影響，可能對我們未來的財務表現產生重大影響。

Additional information concerning factors that may impact our future financial results are explained in our quarterly annual and periodic filings with the SEC. We will mention non-GAAP financial measures that we believe are meaningful to investors when reviewing our financial results.

有關可能影響我們未來財務業績的因素的更多資​​訊在我們向 SEC 提交的季度、年度和定期文件中進行了解釋。在審查我們的財務表現時，我們將提及我們認為對投資者有意義的非公認會計準則財務指標。

Disclosures regarding these non-GAAP metrics, including a reconciliation to its GAAP comparable measures are also available in our SEC filings.

有關這些非 GAAP 指標的揭露，包括與其 GAAP 類似指標的調節，也可在我們向 SEC 提交的文件中找到。

Participating in this quarter's call from the company's executive team, are David Tolley, Chief Executive Officer; and Kurt Wehner, Chief Financial Officer. This quarter, we requested any questions from the investment community to be sent to us in advance of this morning's call. Following David's prepared remarks, we will provide answers to selected questions. Please note that we are also available to answer additional questions after the call.

參加本季公司執行團隊電話會議的包括執行長 David Tolley；庫爾特‧韋納 (Kurt Wehner)，財務長。本季度，我們要求投資界在今天上午的電話會議之前將任何問題發送給我們。在大衛準備好的發言之後，我們將回答選定的問題。請注意，我們也可以在通話後回答其他問題。

It's now my pleasure to introduce David Tolley, our Chief Executive Officer.

現在我很高興向大家介紹我們的執行長 David Tolley。

Thank you, Kevin. Good morning, everyone. Since taking this position about 2 months ago, I've invested my time in 3 primary areas: First, on learning from our employees, listening carefully to their insights about our business and searching for areas of opportunity. Second, in speaking directly with our members and partners, understanding better how they use our services, where we excel and where opportunities for improvement continue to exist. And finally, in developing a thorough understanding of our recent operating and financial results.

謝謝你，凱文。大家早安。自從大約兩個月前擔任此職位以來，我將時間投入到三個主要領域：首先，向員工學習，仔細聆聽他們對我們業務的見解並尋找機會領域。其次，與我們的會員和合作夥伴直接交談，以更好地了解他們如何使用我們的服務、我們的優勢所在以及繼續改進的機會。最後，全面了解我們最近的營運和財務表現。

Before I review our performance for the quarter, I'd like to share some perspectives on what I think I've learned over the last 2 months. Two things seem to be exceptionally clear. One, the future of work is complex, and two, even the most educated market observers and certainly none of us on this call know exactly how this is going to play out in the medium term. This complexity and uncertainty enter directly to our benefit.

在回顧本季的業績之前，我想分享一些我認為在過去兩個月中學到的觀點。有兩件事似乎異常清楚。第一，工作的未來是複雜的；第二，即使是受過最良好教育的市場觀察家，當然我們參加這次電話會議的人也不知道這在中期會如何發展。這種複雜性和不確定性直接為我們帶來好處。

Fewer and fewer companies from mature large-cap businesses to start-ups are willing to enter into long-term leases for geographically fixed spaces when they have relatively poor visibility on how that space may be used or valued by their employees. It also seems clear to us that how employees perceive the space they work in has become an important part of the overall value proposition in a way that it never really has before. Space is just not enough. In our experience, members and employees get differentiated significant value from their workspace when they feel welcomed, energized like part of a network or community.

從成熟的大型企業到新創企業，越來越少的公司願意對地理位置固定的空間進行長期租賃，因為他們對員工如何使用或評估該空間的了解相對較差。我們也清楚地看到，員工如何看待他們工作的空間已經以前所未有的方式成為整體價值主張的重要組成部分。空間還不夠。根據我們的經驗，當會員和員工感到像網路或社群的一部分一樣受到歡迎和充滿活力時，他們就會從他們的工作空間中獲得與眾不同的重要價值。

These factors are critical to determining the difference between square feet or desks and a truly effective workplace. So as always, we offer employers flexibility in time and space and geography as their needs change, and we offer their employees something unique and valuable. I recall one conversation with one of our larger members during an introductory meeting back in June.

這些因素對於確定平方英尺或辦公桌與真正有效的工作場所之間的差異至關重要。因此，我們一如既往地為雇主提供時間、空間和地理位置的靈活性，以適應他們的需求變化，並為他們的員工提供獨特和有價值的東西。我記得在六月的一次介紹會議上與我們的一位較大成員的一次談話。

This was a large cap global media company who uses our services and those of some of our franchisees in perhaps a dozen locations around the world and they told me directly, we always use WeWork. The brand means something. We can count on consistent quality of service in each of your locations. And there's something different about the energy you get when you walk into a WeWork relative to another co-working space.

這是一家大型全球媒體公司，他們在世界各地大約十幾個地點使用我們和我們的一些特許經營商的服務，他們直接告訴我，我們總是使用 WeWork。品牌意味著某種東西。我們可以在您的每個地點提供一致的服務品質。相對於其他共享辦公空間，當您走進 WeWork 時所獲得的能量有所不同。

As we all know, market conditions in commercial office continue to be difficult. In the U.S., in the second quarter, we just hit 30-year low occupancy rates. Demand continues to be negatively impacted by high interest rates, relatively high inflation, slower-than-anticipated return to office trends and venture capital formation at a multiyear level. Each of these factors is impacting our members and our potential members and their ability to grow with us. That said, looking through the current market volatility, we continue to believe in the quality of our hospitality services, the strength of our brand and the inexorable growth in share of coworking and flexible space relative to traditional office.

眾所周知，商業辦公室的市場狀況依然困難。在美國，第二季的入住率剛創下 30 年來的新低。需求持續受到高利率、相對較高的通膨、低於預期的重返辦公室趨勢以及多年風險資本形成的負面影響。這些因素中的每一個都影響著我們的會員和潛在會員以及他們與我們一起成長的能力。也就是說，縱觀當前的市場波動，我們仍然相信我們的酒店服務品質、品牌實力以及聯合辦公和靈活空間相對於傳統辦公室的份額的不可阻擋的增長。

Turning to second quarter performance. The commercial office environment has become more challenging since the start of the year. And although we don't compete directly with traditional leased office, we certainly aren't immune to multi-decade high vacancy rates and weak pricing in that market.

轉向第二季的表現。今年以來，商業辦公環境變得更具挑戰性。儘管我們不與傳統租賃辦公室直接競爭，但我們當然無法免受該市場數十年來的高空置率和疲軟定價的影響。

Specific factors affecting membership demand include the unprecedented amount of sublease space available, including from our own landlords. Increased competition from other flexible space providers, a dearth of available funding for venture and early-stage growth companies and relatively high interest rates in inflation. Although we reported revenue for the second quarter inside guidance, we were just over $20 million wide of the low end of guidance for adjusted EBITDA, and levered free cash flow was significantly below plan.

影響會員需求的具體因素包括空前數量的可用轉租空間，包括我們自己的房東的轉租空間。其他靈活空間提供者的競爭加劇，創投和早期成長公司可用資金匱乏，通貨膨脹利率相對較高。儘管我們報告了第二季度的內部指導收入，但調整後 EBITDA 的指導下限僅略高於 2000 萬美元，槓桿自由現金流也大大低於計劃。

Occupancy increased 2 percentage points year-over-year, but declined 1 percentage point sequentially as member churn increased beyond the rate of new desk sales. Regionally, occupancy in the U.S. and Canada continue to lag the rest of our consolidated global portfolio by over 1,000 basis points, both because return to office continues to lag here in the U.S. and because we are materially oversupplied in a few key markets.

入住率年增 2 個百分點，但由於會員流失率超過新辦公桌銷售率，入住率較上季下降 1 個百分點。從地區來看，美國和加拿大的入住率繼續落後於我們綜合全球投資組合的其他部分超過 1,000 個基點，這既是因為美國的復工率繼續落後，也是因為我們在幾個關鍵市場嚴重供應過剩。

Second quarter revenues increased $29 million or 4% year-over-year despite slightly lower sequential occupancy driven by growth in service and termination fees and all Access revenues. We continued to reduce our location operating costs by $11 million year-over-year by exiting unprofitable buildings and reducing headcount. These savings were partially offset by inflation that drove up the cost of utilities and consumables.

儘管服務和終止費用以及所有 Access 收入成長導致入住率略有下降，但第二季營收年增 2,900 萬美元，即 4%。透過退出不獲利的建築和減少員工人數，我們繼續將場地營運成本比去年同期降低了 1,100 萬美元。這些節省的部分被通貨膨脹推高了公用事業和消耗品的成本所抵消。

Our preopening expenses decreased by $30 million year-over-year as we focus our growth toward a more asset-light strategy. And SG&A expenses decreased $39 million in the second quarter as we continue to find the ways to operate more efficiently. One of the ways we're operating more efficiently and simultaneously delivering more value to our members is through our growing technology partnership with Yardi.

由於我們將成長重點轉向輕資產策略，開業前費用年減了 3,000 萬美元。隨著我們繼續尋找更有效率的營運方法，第二季的 SG&A 費用減少了 3,900 萬美元。我們提高營運效率並同時為會員提供更多價值的方法之一是透過與 Yardi 不斷發展的技術合作夥伴關係。

As you may recall, we worked with Yardi to successfully launch WeWork Workplace last year. This application allows enterprises and their employees to plan their in-office schedules efficiently and improve the ROI on our members' investments with us. In addition, in the coming months, we intend to roll out a single WeWork app with a consistent digital footprint on both the web and mobile devices that combines all of our current workspace solutions into one streamlined application whether Space-as-a-Service, All Access or Workplace. We'll provide our members with a better online experience and further reduce operating expenses and shorten the time to market for other innovative offerings we have in the pipeline.

您可能還記得，我們​​去年與 Yardi 合作成功推出了 WeWork Workplace。該應用程式允許企業及其員工有效地規劃他們的辦公室日程，並提高我們會員在我們這裡的投資的投資回報率。此外，在接下來的幾個月中，我們打算推出一款在網路和行動裝置上具有一致數位足蹟的WeWork 應用程序，將我們目前的所有工作空間解決方案整合到一個簡化的應用程式中，無論是空間即服務、所有訪問或工作場所。我們將為會員提供更好的線上體驗，進一步降低營運費用，並縮短我們正在開發的其​​他創新產品的上市時間。

During the second quarter, our levered free cash flow loss improved from Q1, but was still higher than the company anticipated early this year. As of June 30, we had $680 million of liquidity. In light of our current business trends, we recently drew down $175 million of the $475 million of our committed delayed draw first lien notes.

第二季度，我們的槓桿自由現金流損失較第一季改善，但仍高於公司今年初的預期。截至 6 月 30 日，我們擁有 6.8 億美元的流動資金。鑑於我們當前的業務趨勢，我們最近提取了 4.75 億美元承諾延遲提取第一留置權票據中的 1.75 億美元。

Notably, we added this quarter important disclosure to our 10-Q regarding our ability to continue as a going concern. This evaluation is a technical accounting determination that, importantly, does not consider the potential mitigating effect of a range of operating plans we're currently evaluating, including targeted investments to reduce member churn, drive new desk sales and increase occupancy, further reduce rent and tenancy expenses and continue to drive internal operating efficiency and control SG&A expenses.

值得注意的是，我們在本季的 10-Q 報告中加入了有關我們持續經營能力的重要揭露。該評估是一項技術性會計決定，重要的是，它沒有考慮我們目前正在評估的一系列營運計劃的潛在緩解效果，包括減少會員流失、推動新辦公桌銷售和增加入住率、進一步降低租金和服務的有針對性的投資。

When evaluating our plans to further improve profitability and liquidity, we believe intense focus needs to be applied to our rent and tenancy expenses. Since the fourth quarter of 2019, we've exited or amended 590 leases, which has resulted in an estimated reduction of $12.7 billion of fixed lease payments.

在評估我們進一步提高獲利能力和流動性的計劃時，我們認為需要專注於我們的租金和租賃費用。自 2019 年第四季以來，我們已退出或修改了 590 項租賃，預計固定租賃付款減少了 127 億美元。

Despite this dramatic progress, cash rent and tenancy continues to be our primary challenge and obstacle to profitability and free cash flow. Cash rent and tenancy in the second quarter was equal to 74% of revenue and over 2/3 of our total operating expenses. Along with the rest of our team, I'm laser-focused on addressing this issue, which is critical to our current success and future profitable growth.

儘管取得了巨大的進步，現金租金和租賃仍然是我們獲利能力和自由現金流的主要挑戰和障礙。第二季的現金租金和租賃相當於收入的 74%，占我們總營運支出的 2/3 以上。我和我們團隊的其他成員一起專注於解決這個問題，這對於我們當前的成功和未來的獲利成長至關重要。

Given the challenging market environment, it can be easy to forget that we continue to occupy a unique and important position in the markets we serve. Our value proposition includes our global scale and design and quality of our spaces, our best-in-class hospitality services and our ability to deliver a full suite of complementary services, more than just space to enterprises of any size.

鑑於充滿挑戰的市場環境，人們很容易忘記我們在我們所服務的市場中繼續佔據著獨特而重要的地位。我們的價值主張包括我們的全球規模、空間的設計和品質、我們一流的酒店服務以及我們提供全套補充服務的能力，而不僅僅是為任何規模的企業提供空間。

For example, in the second quarter, one of the world's largest technology organizations just entered into new and renewed contracts with us for 17 locations in 15 different markets from Vancouver to New York to London. Separately, a small-cap growth company just took occupancy at our 7 Rue De Madrid location in Paris, adding 150 All Access Passes and 450 Workplace licenses to their purchase of space as a service.

例如，在第二季度，全球最大的技術組織之一剛剛與我們簽訂了新的和續約的合同，涉及從溫哥華到紐約到倫敦的 15 個不同市場的 17 個地點。另外，一家小型成長型公司剛剛入駐我們位於巴黎馬德里街 7 號的辦公地點，在其購買空間即服務的基礎上添加了 150 個全通行證和 450 個工作場所許可證。

Before closing, I'd like to note the appointment of 4 new independent directors to our Board. On behalf of the Board, I would like to welcome Paul Aronson, Paul Keglevic, Elizabeth LaPuma and Henry Miller to the Board and sincerely thank Dan Hurwitz, Vivek Ranadivé, and Veronique Laury for their many years of dedicated service. Last week, I spent half my day with our community team in Chicago at 167 North Green Street.

在結束之前，我想提一下我們董事會任命了 4 位新獨立董事。我謹代表董事會歡迎 Paul Aronson、Paul Keglevic、Elizabeth LaPuma 和 Henry Miller 加入董事會，並衷心感謝 Dan Hurwitz、Vivek Ranadivé 和 Veronique Laury 多年來的竭誠服務。上週，我在芝加哥北格林街 167 號與我們的社區團隊一起度過了半天。

From my seat at the front desk, I witnessed firsthand how my colleagues support our members, provide solutions and create a truly extraordinary environment. I am honored to lead this team, a community staff in Chicago and the rest of our 3,700 employees around the world to navigate our company in this dynamic environment.

從前台的座位上，我親眼目睹了我的同事如何支持我們的會員、提供解決方案並創造一個真正非凡的環境。我很榮幸能夠領導這個團隊、芝加哥的社區工作人員以及我們世界各地的其他 3,700 名員工，在這個充滿活力的環境中領導我們的公司。

With that, we'll go through a few of the questions that have already been sent to us. Kevin?

接下來，我們將討論一些已經發送給我們的問題。凱文？

Thank you, David. For our Q&A session, we have received a number of questions from the investment community and we'll provide responses to selected questions now.

謝謝你，大衛。在問答環節中，我們收到了許多來自投資界的問題，我們現在將針對選定的問題做出回應。

First, David, can you please provide us with an update for the reverse stock split that was proposed at the last Annual Shareholders Meeting.

首先，大衛，您能否向我們提供有關上次年度股東大會上提議的反向股票分割的最新資訊。

Sure. The reverse stock split proposal approved by our shareholders at the last Annual Shareholder Meeting is on the agenda for our next board meeting. Once the Board makes a decision, we'll provide an update to the market. Just as a reminder, we have until mid-October to effectuate the reverse stock split.

當然。我們的股東在上次年度股東大會上批准的反向股票分割提案已列入我們下次董事會會議的議程。一旦董事會做出決定，我們將向市場提供最新資訊。提醒一下，我們必須在十月中旬之前完成反向股票分割。

Is SoftBank going to push back the maturity of the added credit facilities that expire in 2025 to 2027.

軟銀是否會將 2025 年到期的新增信貸安排的到期日延後至 2027 年？

Sure. So SoftBank did, in fact, extend their credit support for each of these facilities to 2027 already as a part of our debt restructuring in May. We expect the extension process for the underlying credit facilities to get underway later this year or early next year.

當然。因此，事實上，作為我們 5 月債務重組的一部分，軟銀確實已經將這些貸款的信貸支持延長至 2027 年。我們預計基礎信貸安排的延期程序將於今年稍後或明年初開始。

Finally, what's the occupancy trend by major region?

最後，主要地區的入住趨勢如何？

Year-over-year occupancy was up slightly, sequentially flat to down slightly. USC or the U.S. and Canada, as we say, remains sluggish at about 67%, down from 69%. EMEA is at around 78%, and the Pacific region is flat at around 83%.

入住率較去年同期略有上升，較上季持平或略有下降。正如我們所說，南加州大學或美國和加拿大的比例仍然低迷，從 69% 下降到 67% 左右。歐洲、中東和非洲地區約 78%，太平洋地區持平，約 83%。

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This does conclude our second quarter earnings conference call. Thank you all for joining, and please feel free to contact us with any additional questions. Have a good day. Goodbye.

我們的第二季財報電話會議到此結束。感謝大家的加入，如有任何其他問題，請隨時與我們聯繫。祝你有美好的一天。再見。

Thank you, ladies and gentlemen. This does conclude today's call. Thank you for your participation. You may now disconnect.

謝謝你們，女士們、先生們。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。