WeWork sees 'seismic shift', but still burns cash

WeWork thinks it’s found a silver lining to this year’s health worries.

The troubled office-sharing firm reckons 2020 has seen a ‘seismic shift’, making flexibility more desirable than ever before.

That could be good for its business model, which offers short-term rental of office spaces.

There was little immediate sign of that in its third-quarter earnings, however.

Revenues were down again, falling 8% to $811 million.

And it’s still burning through cash, albeit a bit more slowly.

The company got through $517 million over the period, down from $671 million in the previous three months.

Overall memberships also fell by 11%.

But WeWork still sees signs that the worst could be over.

It says it won more clients among bigger firms, and is on track to achieve its goals.

Though it didn’t say if that still meant reaching profitability next year, as previously claimed.

Majority-owner SoftBank installed new management at WeWork after a disastrous attempt to go public in 2019.

The Japanese investment giant also committed to $3.3 billion dollars in additional financing.

Now Fitch Ratings says WeWork should stop burning cash in 2022, but may still need more funding beyond the SoftBank pledge.