Terms

Community Adjusted EBITDA

Nick Name
Earnings without expenses
Parent term

The Community Adjusted EBITDA is the gauge devised by WeWork to measure net income without the interest, taxes, depreciation, and amortization, also including the “building and community level operating expenses”, such as rent and tenancy expenses, utility, internet, salaries of the building staff, and the cost of building amenities. Considered as a controversial financial metric, Community Adjusted EBITDA also includes management expense for active WeWork buildings. The investor presentation focuses on a non-GAAP income measure it calls “community-adjusted EBITDA”. That's essentially EBITDA excluding the cost of sales.

Entities

WeWork

Mentioned by the Following

Entities

WeWork

  • Created and publicly used by the co-working company WeWork
  • Considered by many professionals to be a made-up and/or creative accounting term to serve the companies benefits
    • Some say that this term makes the company look more profitable than it really is
    • Masks the fact that WeWork loses money (circa 2018) according to standard accounting metrics