WeWork SPAC Presentation Deck
Non-GAAP Reconciliation: FY19 location gross profit (loss) from membership and service revenue
and location contribution margin for mature and non-mature buildings
Financial Summary
($ in millions)
Membership and service revenue
Cost of membership and service revenue:
Direct location operating expenses")
Direct location operating expenses - % of membership revenue
Indirect location operating expenses (fka community support expenses)(²)
Indirect location operating expenses (fka community support expenses) - % of membership revenue
Location operating expenses (exclusive of depreciation and amortization shown separately below)
Depreciation and amortization - relating to location operating expenses
Location gross profit (loss) from membership and service revenue calculated in accordance with GAAP:
Location gross profit (loss) margin percentage
Reconciliation of GAAP location gross profit (loss) from membership and service revenue to non-GAAP location contribution
margin
Location gross profit (loss) from membership and service revenue calculated in accordance with GAAP:
Add:
Depreciation and amortization - relating to location operating expenses
Stock-based compensation expense (as included in location operating expenses)
Location Contribution Margin(3)
Negative Impact of non-cash GAAP straight-line lease cost (as included in location operating expenses)
Positive impact of amortization of lease incentives on location contribution margin (as included in location operating expenses) on
location contribution margin
Location contribution margin percentage
Negative Impact of non-cash GAAP straight-line lease cost - % of membership and service revenue
Positive impact of amortization of lease incentives on location contribution margin - % of membership and service revenue
Total Consolidated.
All Locations
$3,059
($2,541)
(83%)
($282)
(9%)
($2,823)
($515)
($279)
(9%)
($279)
$515
$50
$286
$411
($170)
9%
13%
(6%)
China
$225
($280)
(124%)
($16)
(7%)
($296)
($37)
($107)
(47%)
($107)
$37
$1
($69)
$29
($1)
(31%)
13%
(0%)
1.
Includes rent and tenancy expenses, non-cash GAAP straight-line lease cost, and amortization of lease incentives; excludes building related depreciation and amortization.
2. Expenses that are necessary to operate our buildings but not directly tied to an individual building.
Total (excl.
China) (4)
$2,833
($2,261)
(80%)
($266)
(9%)
($2,527)
($479)
($172)
(6%)
($172)
$479
$49
$355
$382
($169)
13%
13%
(6%)
Mature & Non-Mature Split (Excl. China)
Other (4)
$54
Mature
$1,736
($1,267)
(73%)
Non-Mature.
$1,043
($966)
(93%)
3. Membership and service revenue less location operating expenses, adjusted to exclude non-cash stock-based compensation included in location operating expenses; excludes building related depreciation and amortization.
4. Total (Excl. China Co) includes We Live (Ventures) revenue and expenses, which is reflected in "Other".
($27)
(50%)
47 | wework
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