WeWork Investor Day Presentation Deck
Terms & Definitions (Cont'd)
Other Business Metrics (Cont'd):
New Desk Sales: new members that have signed a contract for now or at a future move-in date and existing members who have signed a contract resulting in additional desk sales now or at a
future date.
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Financial Metrics:
Adj. EBITDA: is a non-GAAP measure that we define as net loss before income tax (benefit) provision, interest and other (income)expense, depreciation and amortization expense, stock-
based compensation expense, expense related to stock-based payments for services rendered by consultants, income or expense relating to the changes in fair value of assets and liabilities
remeasured to fair value on a recurring basis, expense related to costs associated with mergers, acquisitions, divestitures and capital raising activities, legal, tax and regulatory reserves or
settlements, significant non-ordinary course asset impairment charges and, to the extent applicable, any impact of discontinued operations, restructuring charges, and other gains and losses
on operating assets.
Adj. EBITDA Margin: Adj. EBITDA divided by Total Revenue.
Location Operating Expenses: include the day-to-day costs of operating an open location and exclude pre-opening costs, depreciation and amortization and general sales and marketing,
which are separately recorded. Our most significant location operating expense is lease cost. Lease cost is recognized on a straight-line basis over the life of the lease term in accordance
with GAAP. Other location operating expenses typically include utilities, ongoing repairs and maintenance, cleaning expenses, office expenses, security expenses, credit card processing fees
and food and beverage costs. Location operating expenses also include personnel and related costs for the teams managing our community operations including member relations, new
member sales and member retention and facilities management.
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Gross Desk Sales: include new desk sales and renewals. Renewals include all members previously on commitment who continue their membership on a commitment. Renewals do not include
month-to-month members.
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Average Commitment Length: represents base contract terms, excluding the impact of any extension and / or termination options. The commitment lengths disclosed may include periods
for which members have an option to terminate their commitments with a less than 10% penalty.
Pre-Opening Expense: consist of expenses (including all lease costs, which also include non-cash GAAP straight-line lease cost) incurred before a location opens for member operations.
Excludes depreciation and amortization expense and stock-based compensation expense.
SG&A: consist sales and marketing, general and ad istrative and sourcing, development and her expenses, and certain community support expenses that are necessary to operate our
buildings but not directly tied to an individual building. Excludes depreciation and amortization expense, stock-based compensation expense, expense related to stock-based payments for
services rendered by consultants, expense related to costs associated with mergers, acquisitions divestitures, and capital raising activities, legal, tax, and regulatory reserves or settlements,
and legal expenses related to regulatory investigations and litigations arising from the 2019 cancelled IPO.
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