About Gores Metropoulos II, Inc.
Gores Metropoulos II, Inc. (GMII) (Nasdaq: GMIIU, GMII and GMIIW) is a special purpose acquisition company sponsored by an affiliate of The Gores
Group, LLC, a global investment firm founded in 1987 by Alec Gores, and by an affiliate of Metropoulos & Co. whose Principals are Dean, Evan and Daren Metropoulos. GMII was formed for the purpose of entering into a merger, capital stock
exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. Mr. Gores and Mr. Metropoulos together have more than 65 years of combined experience as entrepreneurs, operators and
investors across diverse sectors including industrials, technology, media and entertainment, business services, healthcare and consumer products and services. Over the course of their careers, Mr. Gores and Mr. Metropoulos and their
respective teams have invested in more than 180 portfolio companies through varying macroeconomic environments with a consistent, operationally-oriented investment strategy. For more information, please visit www.gores.com.
Sonders 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 Adjusted Gross Profit (Loss), Property Level Costs, Property Level Profit (Loss) and Adjusted EBITDA. Sonder believes that the
disclosure of these non-GAAP financial measures provides investors with additional information that reflects the amounts and financial basis upon which Sonders management assesses and operates its
business. Sonders definition 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.
Key Terms
Sonders Total Portfolio
represents Live Units plus Contracted Units. This includes any unit that has a signed real estate contract, regardless of whether or not the unit is available for guests to book. This excludes any units that have been dropped (i.e., the lease was
terminated or allowed to expire). 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 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.
Sonder defines Occupancy Rate (OR) 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 represents the total number of nights occupied across
all Live Units.
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.
Adjusted Gross Profit (Loss) represents GAAP gross profit (loss) impacted by the GAAP rent to Landlord Payment adjustment,
expressed in U.S. dollars. GAAP gross profit (loss) is defined as revenue less cost of revenue (excluding depreciation and amortization). Landlord Payments represent Non-GAAP 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.
Property Level Profit (Loss) (PLP or PLL) represents GAAP gross profit (loss) (i) impacted by the GAAP rent to Landlord
Payment adjustment, and (ii) less Property Level Costs, expressed in U.S. dollars. Property Level Costs (PLC) represent variable costs directly associated with each of Sonders buildings, expressed in U.S. dollars. These costs
include (i) channel fees paid to Online Travel Agencies (OTAs), (ii) customer service costs, (iii) laundry/consumables costs, (iv) maintenance costs, and (v) utilities & insurance costs.
Adjusted EBITDA represents GAAP profit (loss) from operations (i) impacted by the GAAP rent to Landlord Payment adjustment and (ii) excluding
the impact of depreciation, stock-based compensation, COVID-19 pandemic related offboardings/other (costs associated with dropping units at the beginning of the COVID-19
pandemic), and cash payments from real estate owners received for capital expenditure financing, expressed in U.S. dollars.