WeWork Investor Presentation Deck
Our core business model generates strong unit economics
Levers to improve location
contribution margin
1
If we rent a location for $45 / USF
2 +
3
If we monetize the location at ~2-2.5x our lease
costs, or $100 / USF(1)
4
If we run this location with $25 / USF in
operating expenses (2)
Then the location will generate $30/
USF in annual location contribution
margin
■
■
■
Grow enterprise mix
Layer value-added services to the
platform
Increase in on-demand memberships
Reduced operating costs through
efficiency and automation
Illustrative.
(1) This ratio should stay constant over time as we have price escalations in our membership agreements.
(2) Represents location operating expenses less lease and tenancy costs, adjusted to exclude adjustments for stock-based compensation. Includes cost to run the locations, cost for people, and regionalized overhead & centralized G&A dedicated to buildings.
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