Sonder Holdings Inc. · OTC:SONDQ
Sonder — SPAC Merger (November 2021)
50 slides from Sonder's SPAC merger presentation, November 2021
Slide 1: Investor Presentation November 2021
Investor Presentation November 2021 1
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) is being made in connection with a potential transaction Such forward-looking statements are based upon the current beliefs and expectations of the Industry and Market Data (the “Business Combination”) between Sonder Holdings Inc. (“Sonder”) and Gore
Slide 3: Disclaimer (continued)
Disclaimer (continued) Sonder and GM II believe that such non-GAAP financial measures provide useful information to Trademarks and Trade Names Participants in Solicitation investors and others in understanding and evaluating Sonder’s operating results in the same Sonder and GM II and their respective
Slide 4: Today’s speakers and senior leadership
Today’s speakers and senior leadership Francis Davidson Sanjay Banker Alec Gores Ted Fike Justin Wilson Co-Founder & CEO, President & CFO, Chief Executive Officer, Sr. Managing Director, Sr. Managing Director, Sonder Sonder The Gores Group The Gores Group The Gores Group 4
Slide 5: The Gores SPAC franchise has a premier track record
The Gores SPAC franchise has a premier track record Alignment with Key An Attractive Opportunity for Proven SPAC Track Record Stakeholders Prospective Targets • $36B transaction value across 7 • Sonder stockholders: • Nominal redemptions across 7 completed transactions Compelling valuations and comp
Slide 6: The Gores SPAC franchise has a premier track record
The Gores SPAC franchise has a premier track record Proceeds Acquisition Vehicle Target Transaction Close Transaction Value Redemption Rate Delivered November $2.3B $725M 0% 2016 October $2.4B $800M <1% 2018 February $1.5B $620M 0% 2020 December $2.9B $590M 0% 2020 January $16.1B $925M 0% 2021 Augus
Slide 7: Company Overview
Company Overview Company Overview Financial Overview Transaction Overview 7
Slide 8: Sonder is building the hospitality brand of tomorrow
Company Overview Sonder is building the hospitality brand of tomorrow 1950s Big box chains Introduced brands to consumers 2000s P2P marketplaces Applied technology only to connect guests and listings Tomorrow Leveraging technology and design across the entire value chain to create a 21st century bra
Slide 9: Sonder is revolutionizing the hospitality industry
Company Overview Sonder is revolutionizing the hospitality industry Tech-driven platform ~50% 100% Operating cost reduction1 Digital, mobile first service Design-forward experience 70%+ 350+ Customer Satisfaction loved by our guests (CSAT) scores2 Extraordinary properties3 $809B <2.0% Enormous market
Slide 10: Today, travelers are forced to choose among three flawed options
Company Overview Today, travelers are forced to choose among three flawed options... Boutique Hotels “Big Box” Hotels Short Term Rentals Expensive Boring Unpredictable 10
Slide 11: …but we see no reason to compromise
Company Overview …but we see no Tech-enabled, modern service Consistent, high quality reason to compromise Exceptional design Compelling value 11
Slide 12: Global Lodging Market: $809B total addressable market
Company Overview Global Lodging Market $222B Global luxury and upscale hotel spend in 2019 Our long term goal is to become the leading brand within the massive, $809B $800B+ addressable Total addressable global lodging market in 2019 $495B Untapped lodging lodging market markets $91B Global short-te
Slide 13: Design-led, tech-enabled experience drives value to guests and owners
Company Overview Our design-led, tech-enabled experience drives exceptional value to both guests and real estate owners Guests Real estate Tech-centric owners Design-led Compelling economics Higher quality Hands-off management Lower cost Credentialed partner Our platform manages the end-to-end guest
Slide 14: Traditional hospitality still relies on antiquated services
Company Overview Traditional hospitality still Room service Concierge desk relies on antiquated services Front desk Taxi stand 14
Slide 15: Our technology powers the entire guest journey
Company Overview Our technology powers the entire guest journey, from booking through checkout 1 2 3 4 5 6 Search, Discovery Check-In One-Touch Wifi Digital Customer Service Check-out & Booking Seamless check-in with Wifi and other amenities Concierge On Demand Guest survey and Easy, intuitive browsin
Slide 16: We’ve built the operating system for hospitality
Company Overview We’ve built the operating system for hospitality, infusing technology into every facet of the business Supply growth Building Openings Operations Revenue Supply Demand Forecasting Chain / Generation Onboarding Custom boundary drawn comps Powering our property onboardings and opening
Slide 17: Our technology and model reduce operating costs by as much as 50%
Company Overview Operating Costs Process automation Check-ins Requests Operations Our technology and differentiated model Service efficiency enable us to reduce ~50% Messaging, not calling operating costs vs. Centralized contact center traditional hotels by Self-serve & automation as much as 50% 3rd p
Slide 18: We partner with artists, architects and designers
Company Overview We partner with artists, architects and designers to bring extraordinary spaces to life Featured in 18
Slide 19: Global scale with 350+ properties across 39 markets
Company Overview We have global scale with 350+ properties across 39 markets and a proven expansion playbook 16K+ Live and Contracted Units ~6x Size of largest direct competitor1 Americas Europe & Other International Live Markets Contracted Markets Atlanta Dallas Los Angeles Montreal Orlando San Ant
Slide 20: Entire properties curated and operated by Sonder
Company Overview We offer entire properties curated and operated by Sonder, from apartment developments to modernized hotels Apartment developments1 Modernized hotels 17 West Marina V Hotel Flatiron Miami Dubai Palm Springs New York Witherspoon Randolph Chelsea Green Crescent Philadelphia Detroit Lo
Slide 21: An experience our guests love
Company Overview Whether you need Montreal Dubai a Sonder for a The Richmond Marina Suites night, a week or a 82% 5/5 | 60+ Reviews 78% 5/5 | 240+ Reviews “Brand new building in a trendy neighbourhood, surrounded by good “The room was superb. [There was] privacy even if travelling with friends or fa
Slide 22: Our experience keeps driving direct bookings
Company Overview Direct Bookings, % Booked Revenue ~60% Direct bookings benchmark for US Hotels1 Our exceptional experience keeps driving direct ~70% booking share, Of repeat bookings are direct2 even with minimal marketing spend 2x Increase in repeat bookings from 2019 to Dec. 2020 2018 2019 2020 2
Slide 23: Through COVID, we showcased the resiliency of our business model
Company Overview Monthly RevPAR2 Sonder RevPAR Traditional Hotels RevPAR (Urban - Upper Upscale) Through COVID, we showcased the resiliency of our business model Sep-21 Monthly Occupancy Rate Sonder OR Traditional Hotels OR (Urban - Upper Upscale) 1.2x Sonder RevPAR vs. traditional hotels1 1.3x Sond
Slide 24: Our guest profile and use cases position us to rebound
Company Overview The majority of our guests are: Leisure Travelers1 Domestic Travelers2 Younger Travelers Leisure Business N. America International Under 50 Over 50 Our guest profile and wide range of use cases position us to rebound from the pandemic much faster than the Our product portfolio can s
Slide 25: Significant whitespace within apartment development and hotel markets
Company Overview We have significant whitespace within the apartment development and hotel markets 3.5M US Apartment New apartment units in Sonder’s current US markets Units from 2021E - 2025E1 Global 2.2M Hotel Units Total hotel units in Sonder’s current global markets by EOY 20252 0.8% 1.8% Cumula
Slide 26: A unique value proposition to real estate partners
Company Overview We offer a unique value proposition to Apartment developers Hotel owners real estate partners... Eliminate 12-24 month Technology, design & lease-ups brand-driven revenue Faster construction loan pay Significant operating cost down reduction Cash flow advantage driven by No management
Slide 27: More attractive terms for Sonder than ever before
Company Overview Pre-COVID-19 pandemic Post-COVID-19 pandemic Business ...while also achieving Model ~100% Flexible Fixed leases Contract structure more attractive terms (Fixed lease, Rev. share, Mixed leases) for Sonder than ever before Capital Light <15% ~90% Owner-funded CapEx Owner-funded CapEx
Slide 28: The Sonder flywheel
Company Overview 5 1 Faster Supply, Revenue & Investments PLP1 Growth in Tech The Sonder flywheel underscores our rapid growth as 4 2 we transform the Improved Deal Terms and Better Guest industry Conversion Rates on Better Supply Experience & Cost Structure 3 Better Unit Economics & Brand (1) Prope
Slide 29: Multiple levers to drive continued growth
Company Overview We have multiple levers to drive continued growth In Process Medium Term Longer Term (Next 3 Years) (3-5 Years) (5+ Years) Global portfolio of 56K1 Expand to Asia and within Latin Franchise contracts for Sonder economically attractive units America technology, brand and distribution
Slide 30: Our high performance executive team
Company Overview Our high performance executive team combines deep technology, operations and hospitality experience Francis Davidson Sanjay Banker Martin Picard Satyen Pandya Phil Rothenberg Co-Founder & CEO President & CFO Co-Founder & CTO General Counsel Global Head of RE Melika Carroll Shruti Ch
Slide 31: Financial Overview
Financial Overview Company Overview Financial Overview Transaction Overview 31
Slide 32: Financial highlights
Financial Overview Financial highlights Scaled business Rapid growth $4.0B ~77K 103% 77% 2025E Revenue 2025E Ending 2020A - 2025E 2020A - 2025E Live Live Units Revenue CAGR Unit CAGR Outstanding unit economics Capital and liability light 3 mo. ~90% 19% 1 CapEx funded by landlords Current pipeline Av
Slide 33: Supply growth engine expected to drive rapid live unit growth
Financial Overview Our powerful supply growth engine is expected to drive rapid live unit growth Ending Live Units & Contracted Units Live Units Contracted Units Forecast assumes conservative unit contracting cadence ~900 1,100+ Forecasted average units < Achieved average units contracted per month
Slide 34: Conservatively forecasting RevPAR growth
Financial Overview We’re conservatively forecasting RevPAR growth despite our conviction around pent-up demand and our ability to achieve planned revenue initiatives RevPAR (Initial Outlook1) CBRE forecasts +29% 2020A-2025E RevPAR growth2 split between RevPAR CAGR for traditional hotels2, ~80% marke
Slide 35: Strong revenue growth outlook
Financial Overview We’re confident in our strong revenue growth outlook driven by a combination of rapid supply aggregation, modest market recovery and RevPAR initiatives GAAP Revenue ($M, Initial Outlook1) 103% 2020A-2025E CAGR 70%+ of 2022E revenue driven by units already live or contracted Q2 202
Slide 36: Portfolio of live and contracted units gives revenue visibility
Financial Overview Our current portfolio of already live and contracted units gives us high visibility into our 2021 and 2022 revenue targets 2021E GAAP Revenue ($M, Initial Outlook1) 2022E GAAP Revenue ($M) 70%+ of 2022E Revenue (before initiatives2) from units already live or contracted 98%+ of 20
Slide 37: Clear path to +30% Property Level Profit Margin
Financial Overview We see a clear path to +30% Property Level Profit Margin via market recovery, improved post-COVID deal terms, scale economies and technology investments Total Portfolio - Property Level Profit (Loss) Margin (%, Initial Outlook1) Note: All references to Property Level Profit (Loss) (
Slide 38: Compelling per night unit economics
Financial Overview Compelling “per night” unit economics drive robust annual economics... Per Bookable Night1 Assumptions 2025E Annualized New Unit Assumptions 2025E Average Daily Rate $ $220 Occupancy % 75% RevPAR $165 GAAP Cost of Revenue² $76 $60K $3K Property Level Costs³ $36 Revenue / Unit Sond
Slide 39: Post-pandemic outlook on margin expansion
Financial Overview … which underscore our post-pandemic outlook on margin expansion Initial Outlook ($ in 000s, except RevPAR) 2020A 2021E 2022E 2023E 2024E 2025E Live units (EOY) 4,489 8,133 18,572 34,889 55,654 77,234 Bookable Nights² 1,558,779 2,051,546 4,736,862 9,509,528 16,529,952 24,266,636 R
Slide 40: Hospitality deserves an iconic, 21st century brand
Financial Overview Hospitality deserves an iconic, 21st century brand. This is our moment. Tech-driven platform ~50% 100% Operating cost reduction1 Digital, mobile first service Design-forward experience 70%+ 350+ Customer Satisfaction loved by our guests (CSAT) scores2 Extraordinary properties3 $809
Slide 41: Transaction Overview
Transaction Overview Company Overview Financial Overview Transaction Overview 41
Slide 42: Transaction summary
Transaction Overview Transaction summary Illustrative Pro Forma Valuation ($M, except per share values) Key Transaction Terms Pro Forma Capitalization ● Pro forma enterprise value of $1,925M (3.2x 2022E revenue) Share Price at Merger $ 10.00 ● Pro forma net balance sheet cash includes proceeds from
Slide 43: Sonder’s peer set
Transaction Overview Sonder’s peer set represents strong brands and technology-enabled platforms Vertical Disruptors Digital Hospitality & Real Estate ■ Similar long-term margin profile ■ Disrupting traditional lodging industry ■ Recognized consumer-brands ■ Proven technology-enabled platforms ■ Oper
Slide 44: Valuation benchmarking (1/2)
Transaction Overview Valuation benchmarking (1/2) 2022E Revenue Multiple Median: 3.7x Median: 2.8x Median: 5.1x 2022E Adj. EBITDA Multiple Sonder Median: 36.3x Median: 15.7x Median: 19.0x Implied Adj. Multiple at Target Margin of 20%: 15.8x NM NM NM NM NM NM Vertical Disruptors Digital Hospitality a
Slide 45: Valuation benchmarking (2/2)
Transaction Overview Valuation benchmarking (2/2) 2023E Revenue Multiple Median: 2.9x Median: 2.3x Median: 4.3x 2023E Adj. EBITDA Multiple Sonder Implied Adj. Multiple at Median: 21.6x Median: 15.4x Median: 16.2x Target Margin of 20%: 6.7x NM NM NM NM Vertical Disruptors Digital Hospitality and Real
Slide 46: Operational benchmarking
Transaction Overview Operational benchmarking 2017A – 2019A Revenue CAGR Median: 61% Median: 10% Median: 8% NA 2020A – 2023E Revenue CAGR Median: 37% Median: 39% Median: 30% Vertical Disruptors Digital Hospitality and Real Estate Upper Upscale Lodging Source: IBES, Bloomberg, Capital IQ, Company Fil
Slide 47: Appendix
Appendix 47
Slide 48: Audited GAAP 2019, 2020 financials & unaudited GAAP
Appendix Audited Unaudited ($ in 000s) 2019 2020 1H 2021 Q3 2021 Revenue $142,910 $115,678 $78,827 $67,454 Cost of Revenue $124,866 $136,995 $82,950 $52,402 Audited GAAP Total Operating Expenses $189,147 $222,505 $131,860 $70,453 2019, 2020 financials Operating Income (Loss) ($171,103) ($243,822) ($
Slide 49: Non-GAAP reconciliation
Appendix GAAP to Non-GAAP Bridges ($ in 000s) 2019 2020 1H 2021 Q3 2021 Loss from operations $(171,103) $(243,822) $(135,983) $(55,401) Operations & Support, General & Administrative, Research & Development and Sales & Marketing $189,147 $222,505 $131,860 $70,453 Property Level Costs $(33,666) $(41,
Slide 50: Risk Factors Summary
Appendix Risk Factors Summary ● Sonder’s actual results may differ materially from its forecasts and projections. ● Sonder must attract and retain sufficient, highly skilled personnel and is subject to risks associated with the employment of hospitality personnel, including unionized labor. ● Sonder’s