To join the Sonder class action, go to https://rosenlegal.com/submit-form/?case_id=23643 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent ...

SAN FRANCISCO, May 17, 2024 (GLOBE NEWSWIRE) -- Sonder Holdings Inc. (NASDAQ: SOND, "Sonder" or the "Company") today announced that it received an expected deficiency notification letter from the Listing Qualifications Staff of The Nasdaq Stock Market LLC ("Nasdaq") on May 16, 2024 (the "Notice"). The Notice indicated that the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1) (the "Listing Rule") as a result of its failure to timely file its Quarterly Report on Form 10-Q for the quarter ende ...

SAN FRANCISCO, May 17, 2024 (GLOBE NEWSWIRE) -- Sonder Holdings Inc. (NASDAQ: SOND, "Sonder" or the "Company") today announced that it received an expected deficiency notification letter from the Listing Qualifications Staff of The Nasdaq Stock Market LLC ("Nasdaq") on May 16, 2024 (the "Notice"). The Notice indicated that the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1) (the "Listing Rule") as a result of its failure to timely file its Quarterly Report on Form 10-Q for the quarter ende ...

BENSALEM, Pa., May 17, 2024 /PRNewswire/ -- Law Offices of Howard G. Smith announces that investors with substantial losses have opportunity to lead the securities fraud class action lawsuit against Sonder Holdings Inc. ("Sonder" or the "Company") (NASDAQ: SOND). Class Period: March 16, 2023 – March 15, 2024 Lead Plaintiff Deadline: June 10, 2024 Investors suffering losses on their Sonder investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class act ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): March 14, 2024 SONDER HOLDINGS INC. (Exact name of registrant as specified in its charter) Delaware 001-39907 85-2097088 (State or other jurisdiction of incorporation) 447 Sutter St., Suite 405 #542 (617) 300-0956 (Registrant's telephone number, including area code) Not Applicable (Former name ...

Financial Data and Key Metrics - Revenue grew 29% year-over-year to $161 million in Q3 2023, driven by a 33% increase in bookable nights and a 31% increase in live units [30][45] - Free cash flow improved significantly, reaching negative $16 million in Q3 2023 compared to negative $39 million in Q3 2022, with free cash flow margin improving from negative 31% to negative 10% [22][45] - Occupancy remained strong at 83%, slightly down from 84% in Q3 2022, despite significant growth in bookable nights [30] - Property level costs grew by 19%, while non-property level operating expenses decreased by 14% year-over-year [31] Business Line Performance - Hotel product RevPAR grew 8% year-over-year, while apartment product RevPAR grew only 1%, reflecting market trends favoring hotels over alternative accommodations [18] - Hotels now make up 40% of total live units, up from 30% a year ago, with hotel properties having lower RevPAR but also lower rent and property level expenses compared to apartment-style properties [46] - New properties (live for less than a year) had average RevPAR approximately 30% lower than mature units, primarily due to a greater reliance on B2B sales [19] Market Performance - Europe and the Middle East saw strong demand, with comparable properties RevPAR growing 14% year-over-year, while North American RevPAR remained flat [26] - North American properties faced challenges, particularly in Mexico City, where properties make up over 10% of the cohort of units that went live in the last year [19] Strategic Direction and Industry Competition - The company is focused on converting contracted units into live units, with a backlog of contracted units representing nearly 50% of the live unit count, supporting sustainable positive free cash flow [20] - A portfolio optimization program is underway to improve the economics of underperforming properties, with early signs of success in reducing costs and improving profitability [4][28] - The company is investing in local sales teams and corporate sales efforts, which are expected to bolster RevPAR in urban markets, particularly during weekdays [47] Management Commentary on Operating Environment and Future Outlook - Management remains focused on achieving sustainable positive free cash flow as soon as possible, with continued improvements in cost structure and operating leverage [31][45] - The company is optimistic about the trajectory of improvements but acknowledges uncertainties around the impact of the portfolio optimization program on revenue and free cash flow in the short term [33] - For Q4 2023, the company expects revenue between $165 million and $175 million and free cash flow between negative $39 million and negative $29 million [52] Other Important Information - The company has reduced its corporate workforce by over 30% since going public in early 2022 and continues to identify non-property level cost savings [4] - New additions to the leadership team include Tom Buoy and Simon Turner to the Board, Adam Bowen as Chief Accounting Officer, Katie Potter as General Counsel, and Chad Fletcher as Vice President of Sales [21] Q&A Session Summary Question: Gross margins came in lower than expected. What were the main drivers, and how do you see margins trending? - The lower gross margins were primarily driven by RevPAR coming in slightly below expectations, with revenue results at the low end of the range. The company continues to focus on cost reduction and improving RevPAR to sustain gross margins [53][35] Question: How should we think about the total portfolio versus live units, and what is the outlook for the balance sheet? - The company is focused on converting contracted units into live units, with nearly 50% embedded growth expected in the next couple of years. The balance sheet remains healthy, with a strong cash cushion and sustained progress on free cash flow [36][37][38] Question: Can you provide an update on RevPAR initiatives and revenue management technology? - The company is making changes to its pricing strategy, focusing on building a base of occupancy earlier in the booking window to drive higher ADR and RevPAR. Technology improvements are also being implemented to optimize pricing trajectories [39][60]

PART I - FINANCIAL INFORMATION Overview of the company's financial statements, management's discussion, market risk, and internal controls [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Presents Sonder's unaudited condensed consolidated financial statements, including balance sheets, income statements, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$1.72 billion**, liabilities grew to **$1.91 billion**, and cash decreased to **$166.0 million**, widening the stockholders' deficit | Account | Sep 30, 2023 (in thousands) | Dec 31, 2022 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | $166,045 | $246,624 | ($80,579) | | Total current assets | $233,258 | $312,930 | ($79,672) | | Operating lease ROU assets | $1,439,572 | $1,209,486 | $230,086 | | **Total assets** | **$1,716,337** | **$1,573,612** | **$142,725** | | **Liabilities & Stockholders' Deficit** | | | | | Total current liabilities | $329,266 | $250,641 | $78,625 | | Non-current operating lease liabilities | $1,382,693 | $1,166,538 | $216,155 | | Long-term debt, net | $196,398 | $172,950 | $23,448 | | **Total liabilities** | **$1,909,025** | **$1,593,559** | **$315,466** | | **Total stockholders' deficit** | **($192,688)** | **($19,947)** | **($172,741)** | - A **1-for-20 reverse stock split** became effective on September 20, 2023, and prior period balances have been adjusted to reflect this change[16](index=16&type=chunk)[43](index=43&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q3 2023 revenue grew **29.2%** to **$160.9 million**, with net loss improving to **$64.3 million**, while the nine-month net loss widened to **$196.0 million** | Metric (in thousands, except per share) | Q3 2023 | Q3 2022 | 9 Months 2023 | 9 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $160,896 | $124,526 | $439,037 | $326,314 | | Loss from operations | ($56,930) | ($61,268) | ($183,685) | ($224,712) | | Net loss | ($64,276) | ($73,689) | ($196,034) | ($108,392) | | Basic and diluted net loss per common share | ($5.86) | ($6.83) | ($17.97) | ($10.70) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to **$74.0 million**, while financing activities provided minimal cash, leading to an **$82.0 million** decrease in cash | Cash Flow Activity (in thousands) | Nine months ended Sep 30, 2023 | Nine months ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | ($74,038) | ($124,092) | | Net cash used in investing activities | ($12,105) | ($26,089) | | Net cash provided by financing activities | $2,758 | $400,555 | | **Net change in cash, cash equivalents, and restricted cash** | **($81,953)** | **$248,514** | [Notes to the Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail a **1-for-20 reverse stock split**, revenue disaggregation, debt, lease obligations, restructuring charges, and ongoing legal matters - On September 19, 2023, the company filed for a **1-for-20 reverse stock split** of its common stock, which became effective on September 20, 2023. All share and per-share data have been retroactively adjusted[43](index=43&type=chunk)[98](index=98&type=chunk) | Revenue Source (in thousands) | Nine months ended Sep 30, 2023 | Nine months ended Sep 30, 2022 | | :--- | :--- | :--- | | Direct revenue | $210,444 | $149,010 | | Indirect revenue | $228,593 | $177,304 | | **Total revenue** | **$439,037** | **$326,314** | - The company is undertaking a **portfolio optimization program** to renegotiate leases at underperforming properties, which may result in contract modifications, terminations, and potential material expenses[136](index=136&type=chunk) - Restructuring charges of **$2.1 million** were incurred in the first nine months of 2023 due to a **14% reduction** in the corporate workforce, following a **$4.0 million** charge in 2022 for a previous restructuring[148](index=148&type=chunk)[149](index=149&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's **'Cash Flow Positive Plan,'** focusing on revenue growth, improved free cash flow, and liquidity position - The company's primary focus is its **'Cash Flow Positive Plan,'** aiming to achieve sustainable positive **Free Cash Flow (FCF)** without additional fundraising. **FCF improved by $62.7 million** for the nine months ended Sep 30, 2023, compared to the same period in 2022[161](index=161&type=chunk) | Key Metric | Q3 2023 | Q3 2022 | Change | 9 Months 2023 | 9 Months 2022 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Live Units (End of Period) | 11,800 | 9,000 | +31.1% | 11,800 | 9,000 | +31.1% | | Bookable Nights | 1,048,000 | 786,000 | +33.3% | 2,904,000 | 2,200,000 | +32.0% | | RevPAR | $153 | $158 | -3.2% | $151 | $148 | +2.0% | | ADR | $185 | $189 | -2.1% | $185 | $185 | 0.0% | | Occupancy Rate | 82.8% | 84.0% | -1.2 p.p. | 81.9% | 80.0% | +1.9 p.p. | - Revenue for Q3 2023 increased by **29.2% to $160.9 million**, primarily due to a **31.1% increase in Live Units** and a **31.3% increase in Occupied Nights**[188](index=188&type=chunk) - The company believes its existing cash of **$166.0 million** is sufficient to fund operations and debt obligations for at least the next 12 months, given significant reductions in cash burn[239](index=239&type=chunk)[241](index=241&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in the company's market risk from previously provided information in its Annual Report on Form 10-K - There have been **no material changes** in the company's market risk since the fiscal year ended December 31, 2022[260](index=260&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were **not effective** due to material weaknesses in internal control over financial reporting - The principal executive officer and principal financial officer concluded that disclosure controls and procedures were **not effective** as of the end of the period[261](index=261&type=chunk) - **Material weaknesses** related to the process for recording lease agreements, control activities, and the control environment, as disclosed in the 2022 Form 10-K, still existed as of September 30, 2023[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk) - A remediation plan is underway, including process improvements and additional training, but the controls have **not operated for a sufficient period** to be considered effective[265](index=265&type=chunk)[266](index=266&type=chunk) PART II - OTHER INFORMATION Details on legal proceedings, risk factors, equity sales, defaults, mine safety, and other disclosures [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a legal dispute over withheld rent and a previously filed class action lawsuit was dismissed - Sonder is in a legal dispute with the landlord of its 20 Broad Street, NY property regarding withheld rent payments. On October 13, 2023, a court granted **summary judgment on liability against Sonder**, which filed a notice of appeal on November 13, 2023[271](index=271&type=chunk) - A class action lawsuit filed against the company in August 2023 concerning a November 2022 data security incident was **voluntarily dismissed with prejudice** by the plaintiff on October 30, 2023[272](index=272&type=chunk) [Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors, including achieving positive free cash flow and maintaining Nasdaq listing - There have been **no material changes** to the risk factors disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022[274](index=274&type=chunk) - Key risks highlighted include: - Potential failure to achieve positive, sustainable **Free Cash Flow** without additional fundraising - Negative effects from inflation and other macroeconomic factors - Inability to negotiate satisfactory leases for new properties or renew existing ones - Potential failure to maintain compliance with Nasdaq's minimum bid price rule[276](index=276&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) No unregistered sales of equity securities, use of proceeds, or issuer purchases of equity securities were reported - **None**[278](index=278&type=chunk) [Defaults Upon Senior Securities](index=53&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - **None**[279](index=279&type=chunk) [Mine Safety Disclosures](index=53&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - **Not applicable**[280](index=280&type=chunk) [Other Information](index=53&type=section&id=Item%205.%20Other%20Information) No directors or Section 16 officers adopted or terminated any Rule 10b5-1 trading arrangements during the quarter - **No directors or Section 16 officers** adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended September 30, 2023[281](index=281&type=chunk) [Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the quarterly report, including certifications and XBRL data files - A list of exhibits filed with the report is provided, including **officer certifications** and **interactive data files**[283](index=283&type=chunk)[284](index=284&type=chunk)

Sonder Holdings Inc. (NASDAQ:SOND) Q2 2023 Earnings Conference Call August 9, 2023 5:00 PM ET Company Participants Chris Berry – Senior Vice President and Chief Accounting Officer Francis Davidson – Co-Founder and CEO Dom Bourgault – Chief Financial Officer Conference Call Participants Jake Hallac – Citi Operator Good day and thank you for standing by. Welcome to the Sonder Holdings Second Quarter 2023 Earnings Call. At this time all participants are in a listen-only mode. After the speakers' presentation, ...

27 7 5 7 ﺏ ﻻ 2 3 4 Note: Transient demand is defined as _____. | --- | --- | --- | --- | |--------------|-------|-------|-------| | | | | | | Sonder | | | | | | | | | | Investor | | | | | Presentation | | | | | August 2023 | | | | | | | | | Sonder V Palm Springs, Palm Springs Our Mission 2 Sonder Paseo de Gracia, Barcelona 4 Sonder is building the future of hospitality… Big box chains Introduced brands to consumers Tomorrow Leveraging technology and design across the entire value chain to create a 21st cent ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 001-39907 ___________________________________ SONDER HOLDINGS INC. ___________________ ...