WeWork Investor Presentation Deck
Non-GAAP reconciliation: 1H '19 location gross profit (loss) from membership and
service revenue and Location contribution margin for mature buildings at various
contribution margin cohorts
($ in millions; excluding JV's and India)
Location gross profit (loss) from membership and service revenue calculated in accordance with
GAAP:
Membership and service revenue
Cost of membership and service revenue:
Location operating expenses (exclusive of depreciation and amortization shown separately below)
Depreciation and amortization - relating to location operating expenses
Total cost of membership and service revenue
Location gross profit (loss) from membership and service revenue
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
Add:
Depreciation and amortization - relating to location operating expenses
Stock-based compensation expense (as included in location operating expenses) (¹)
Location contribution margin
Impact of non-cash GAAP straight-line lease cost (as included in location operating expenses) on
location contribution margin
Location contribution margin percentage
<= 0%
$ 35
(41)
(5)
($46)
($10)
(29%)
($10)
($5)
$5
(15%)
>0 - 20%
$99
(87)
(15)
($102)
($3)
(3%)
($3)
15
$12
$ 5
12%
>20 - 40%
$215
(153)
(30)
($184)
$31
15%
$31
30
I
$62
$ 4
29%
>40%
$40
(21)
(7)
($28)
$12
30%
$12
7
$19
($0)
48%
(1%)
Non-Mature, JV's Total Consolidated
& Other (2)
All locations
$959
(931)
(172)
($1,103)
($144)
($144)
172
26
$54
$184
$1,349
(1,233)
(230)
(1,463)
($114)
(8%)
($114)
230
26
142
198
10%
Non-cash GAAP straight-line lease cost as a % of membership and service revenue
15%
5%
2%
(1) Represents the non-cash expense of our equity compensation arrangements for employees whose payroll is included in location operating expense. Stock-based compensation expense is not allocated at the location level.
(2) The "Other" cohort relates to revenue, location operating expenses, and depreciation relating to non-mature locations, revenue, location operating expenses, and depreciation relating to locations in China Co, JapanCo, and Pacific Co, membership and service revenue related to
management fees earned for providing services to unconsolidated locations in India and revenue, location operating expenses, and depreciation relating to locations that also serve as headquarters locations that are not included in the Company's cohort analysis, as performance of
these locations is not representative of our open locations
15%
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