Company Interview / Wotso flexible? The demand for virtual offices

Key points:

Demand for flexible workspaces rises in suburban Australia and New Zealand.Wotso sees strongest demand in South East Queensland; diversifies with virtual offices.Flexible, no-lock-in contracts appeal, despite seasonal revenue shifts.

Jessica Glew from Wotso (ASX: WOT) discusses the demand for flexible workspaces, which has increased in suburban and regional Australia and New Zealand post-COVID. Jessica highlights targeting small to medium businesses transitioning from home offices to flexible workspaces.

Jessica notes that Wotso's revenue dip in the December quarter is due to seasonal changes, but overall occupancy remains strong at 79%. South East Queensland experiences the highest demand, with a recent Robina space achieving 90% occupancy within eight months. Virtual office services are also boosting Wotso's revenue.

Jessica says the absence of lock-in contracts appeals to customers, resulting in an average tenure of 2.5 years. Despite fluctuating interest rates, the company adapts by adjusting membership rates. Key challenges include securing suitable spaces and managing rising construction costs.