Sonder Restructuring Presentation Deck
Disclaimer (continued)
Use of Non-GAAP Financial Measures
Sonder supplements its consolidated financial statements presented in accordance with generally
accepted accounting principles in the United States ("GAAP"), by providing additional financial measures
that are not prepared in accordance with GAAP, including Other Operating Expenses (Overhead), Cash
Contribution and related margin, Property Level Costs, and Free Cash Flow. Further information about
these measures appears under "Key Terms" below. Sonder's management uses these non-GAAP
financial measures, collectively, to evaluate ongoing operations and for internal planning and
forecasting purposes. Sonder believes that these non-GAAP financial measures are useful in evaluating
its operating performance, and may assist investors in comparisons with other companies, some of
which use similar non-GAAP financial information to supplement their GAAP results. However, Sonder's
definitions may differ from the definitions used by other companies and therefore comparability may be
limited. In addition, other companies may not publish these or similar metrics. These non-GAAP financial
measures should not be viewed in isolation or as a substitute for, or superior to, measures prepared in
accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the
reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial
measures. Sonder has not reconciled consolidated Free Cash Flow guidance to projected consolidated
GAAP cash provided by (used in) operating activities because we do not provide guidance on GAAP by
(used in) operating activities or the reconciling items between Free Cash Flow and GAAP cash provided
by (used in) operating activities, as a result of the uncertainty regarding, and the potential variability of,
certain of these items. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the
corresponding GAAP measure is not available without unreasonable effort.
Sonder
Key Terms
Live Units
Live Units are defined as units which are available for guest bookings on Sonder.com, the Sonder app and
other channels. Sonder pays rent (or utilizes pre-negotiated abatement) and is able to generate revenue
from these units.
Contracted Units
Contracted Units are units for which Sonder has signed real estate contracts, but are not yet available for
guests to book. Sonder is not yet able to generate revenue from these units.
Revenue per Available Room
Revenue Per Available Room ("RevPAR") represents the average revenue earned per available night, and
is calculated either by dividing revenue by Bookable Nights, or by multiplying Average Daily Rate by
Occupancy Rate. Average Daily Rate ("ADR") represents the average revenue earned per night occupied
and is calculated as revenue divided by Occupied Nights. Occupancy Rate ("OR") is defined as Occupied
Nights divided by Bookable Nights, expressed as a percentage. Bookable Nights represent the total
number of nights available for stays across all Live Units. This excludes nights lost to full building closures
of greater than 30 nights. Occupied Nights represent the total number of nights occupied across all Live
Units.
Free Cash Flow
Free Cash Flow ("FCF") is defined as our cash provided by (used in) operating activities plus any
changes to capital expenditures and internally developed software, both of which are included in cash
provided by (used in) investing activities. Free Cash Flow Margin is is defined as Free Cash Flow as a
percentage of revenue.
Landlord Payments
Landlord Payments represent cash payments to real estate owners recognizing abatement at the time it
is utilized (often at the commencement of a real estate contract), expressed in U.S. dollars. This recognizes
the economic substance of the payment to real estate owners as reflected in the real estate contract.
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