Future Of Work Opportunity & Quarterly Financial Results
Disclaimer
Forward-Looking Statements
in any
Certain statements made in this presentation may be deemed
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, as amended. These forward
looking statements generally are identified by the words "believe,"
"project," "expect," "anticipate," "estimate," "intend," "strategy," "future,"
"opportunity," "plan," "pipeline," "may," "should," "will," "would," "will
be," "will continue," "will likely result," and similar expressions.
Forward-looking statements are predictions, projections and other
statements about future events that are based on current expectations.
and assumptions and, as a result, are subject to risks and uncertainties.
Although WeWork believes the expectations reflected
forward-looking statement are based on reasonable assumptions, it can
give no assurance that its expectations will be attained, and it is
possible that actual results may differ materially from those indicated
by these forward-looking statements due to a variety of risks,
uncertainties and other factors. Such factors include, but are not limited
to, WeWork's ability to refinance, extend, restructure or repay near and
intermediate term debt; its indebtedness; its ability to raise capital
through equity issuances, asset sales or the incurrence of new debt;
retail and credit market conditions; impairments; its liquidity demand;
changes in general economic conditions, including as a result of the
COVID-19 pandemic; delays in customers and prospective customers
returning to the office and taking occupancy as a result of the COVID-19
pandemic and the emergence of variants leading to a parallel delay in
receiving the corresponding revenue; the impact of foreign exchange
rates on our financial performance; and WeWork's inability to implement
its business plan or meet or exceed its financial projections.
Forward-looking statements speak only as of the date they are made.
WeWork discusses these and other risks and uncertainties in its annual
and quarterly periodic reports and other documents filed with the U.S..
Securities and Exchange Commission. WeWork may update that
discussion in its periodic reports, but otherwise takes no duty or
obligation to update or revise these forward-looking statements,
whether as a result of new information, future developments, or
otherwise.
Use of Data
This presentation contains information concerning WeWork's solutions
and WeWork's industry, including market size and growth rates of the
markets in which WeWork participates, that are based on industry
surveys and publications or other publicly available information, other
third-party survey data and research reports commissioned by WeWork
and its internal sources. This information involves many assumptions
and limitations. There can be no guarantee as to the accuracy or
reliability of such assumptions and you are cautioned not to give undue
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weight to this information. Further, no representation is made as to the
reasonableness of the assumptions made by third parties or the
accuracy or completeness of any projections or modeling or any other
information contained herein. Any data on past performance of WeWork
or modeling contained herein is not an indication as to future
performance. WeWork has not independently verified any such
third-party information. Similarly, other third-party survey data and
research reports commissioned by WeWork, while believed by WeWork to
be reliable, are based on limited sample sizes and have not been
independently verified by WeWork. In addition, projections,
assumptions, estimates, goals, targets, plans and trends of the future
performance of the industry in which WeWork operates, and WeWork's
future performance, are necessarily subject to uncertainty and risk due
to a variety of factors, including those described above. These and other
factors could cause results to differ materially from those expressed in
the estimates made by independent parties and by WeWork. Except as
may be required by law, WeWork assumes no obligation to update the
information in this presentation.
Use of Non-GAAP Financial Metrics
This presentation includes certain financial measures not presented in
accordance with generally accepted accounting principles in the United
States ("GAAP"): Adjusted EBITDA, Free Cash Flow. and non-GAAP
financial measures of foreign exchange, including ARPM at budgeted
foreign exchange rates (including on a forward looking basis). These
financial measures are not measures of financial performance in
accordance with GAAP and may exclude items that are significant in
understanding and assessing our financial results. Therefore, these
measures should not be considered in isolation or as an alternative to
net loss or other measures of profitability, liquidity or performance
under GAAP. You should be aware that our presentation of these
measures may not be comparable to similarly titled measures used by
other companies, which may be defined and calculated differently.
WeWork believes that these non-GAAP measures of financial results
(including on a forward-looking basis) provide useful supplemental
information to investors about WeWork. WeWork's management uses
forward-looking non-GAAP measures to evaluate WeWork's projected
financials and operating performance.
Reconciliations of non-GAAP measures to their most directly
comparable GAAP counterparts are included in the Appendix to this
presentation. Additionally, to the extent that forward-looking non-GAAP
financial measures are provided, they are presented on a non-GAAP
basis without reconciliations of such forward-looking non-GAAP
measures due to the inherent difficulty in forecasting and quantifying
certain amounts that are necessary for such reconciliations.
Non-GAAP Financial Measures of Foreign Exchange
We supplement our GAAP financial results by evaluating our
performance excluding the effect of foreign exchange. We believe that
the disclosure of our financial results on a budgeted foreign basis is a
useful supplemental measure of operating performance because it
facilitates comparison of our current performance to our guidance
provided by excluding the effects of foreign currency volatility. We
calculate our budgeted foreign exchange results by translating the
current quarter functional currency results at our budgeted foreign
exchange rate, which is a spot rate for each of our functional currencies
determined early in the fiscal year as part of our annual budgeting
process. The presentation of financial results on budgeted foreign
exchange basis should be considered in addition to, but not a
substitute for, measures of financial performance reported in
accordance with U.S. GAAP.
India, China and Israel
This presentation includes operating metrics (including number of
locations, desks, and memberships) relating to WeWork's investments
and operations in China and India, which are not consolidated.
Therefore, the results of WeWork's operations in China and India are not
reflected in the WeWork financial statements and projections set forth
in this presentation on a line-by-line basis, as such operations are not
conducted through consolidated subsidiaries or controlling interests of
WeWork. In June 2021, WeWork closed a franchise agreement and
transferred the building operations and obligations of its Israel
locations to the franchisee. Israel results of operations have been
included through May 2021, and excluded from subsequent projections.
Unless otherwise explicitly specified in this presentation, India, China
and Israel related metrics are excluded from all calculations.
Trademarks
This presentation contains trademarks, service marks, trade names and
copyrights of WeWork and other companies, which are the property of
their respective owners.
Preliminary Financial Information
We report our financial results in accordance with U.S. generally.
accepted accounting principles. All projected financial information and
metrics in this presentation are preliminary. These estimates are not a
comprehensive statement of our financial position and results of
operations. There is no assurance that we will achieve our forecasted
results within the relevant period or otherwise.
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