October 25, 2021

Let’s All Have a Good Laugh at WeWork’s Stupid ‘Community Adjusted Ebitda’

accounting firm timesheet

WeWork, a commercial landlord pretending to be a tech-lifestyle company, raised over $700 million in a bond offering yesterday, and it seems they are taking a page from Groupon’s accounting playbook, offering a ludicrous profit metric for all of our enjoyment:

In the offering documents, WeWork went to unusual lengths to show ways in which the company would be profitable. While many companies typically offer “adjusted” earnings, WeWork offered three different layers of adjustments.

It called the fully adjusted number “community adjusted Ebitda,” by which it subtracted not only interest, taxes, depreciation and amortization, but also basic expenses like marketing, general and administrative, and development and design costs. Those earnings were $233 million, WeWork said.

“I’ve never seen the phrase ‘community adjusted Ebitda’ in my life,” said Adam Cohen, founder of Covenant Review, a bond research company.

There are lots of unflattering things that someone could say about your company’s ridiculous non-GAAP metric, but I have a hard time thinking of something worse than “I’ve never seen that in my life.”

[WSJ]

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

3 Comments

  1. I like it. Sounds like something from the Obama Administration. Community organized, too. Which means all contributory payoffs are not likely disclosed.

      1. When they told us we could keep our doctor and that our premiums wouldn’t go up. My max OOP for family care is now $41,000 per year. Obama was and is a lying sack of dung.

Comments are closed.

Related articles

OK Which One of You Has This Yacht?

We know it doesn’t belong to former WeWork CEO Adam Neumann or it would be called “Community Adjusted EBITDA.” No words… pic.twitter.com/cV6kzUCZ6s — The Wet Bandits (@ChaseJones11) August 1, 2021 Happy Monday, everyone. Related article: Let’s All Have a Good Laugh at WeWork’s Stupid ‘Community Adjusted Ebitda’ Latest Accounting Jobs–Apply Now: Implementation Manager CPA Firm […]