Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | May 11, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-39907 | |
Entity Registrant Name | Sonder Holdings Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-2097088 | |
Entity Address, Address Line One | 101 15th Street | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94103 | |
City Area Code | 617 | |
Local Phone Number | 300-0956 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Smaller Reporting Company | false | |
Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 217,308,629 | |
Entity Central Index Key | 0001819395 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock, par value $0.0001 per share | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | SOND | |
Security Exchange Name | NASDAQ | |
Warrants, each whole warrant exercisable for one share of Common Stock at an exercise price of $11.50 per share | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Warrants, each whole warrant exercisable for one share of Common Stock at an exercise price of $11.50 per share | |
Trading Symbol | SONDW | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash | $ 406,348 | $ 69,726 |
Restricted cash | 683 | 215 |
Accounts receivable, net of allowance of $3,291 and $4,127 at March 31, 2022 and December 31, 2021 respectively | 1,336 | 4,638 |
Prepaid rent | 3,380 | 2,957 |
Prepaid expenses | 14,435 | 5,029 |
Other current assets | 18,518 | 16,416 |
Total current assets | 444,700 | 98,981 |
Property and equipment, net | 35,243 | 27,461 |
Operating lease right-of-use assets | 1,133,809 | |
Other non-current assets | 15,606 | 22,037 |
Total assets | 1,629,358 | 148,479 |
Current liabilities | ||
Accounts payable | 16,109 | 19,096 |
Accrued liabilities | 25,313 | 19,557 |
Sales tax payable | 11,366 | 8,412 |
Deferred revenue | 34,068 | 18,811 |
Current portion of long-term debt | 0 | 13,116 |
Convertible notes | 0 | 184,636 |
Current operating lease liabilities | 143,014 | |
Total current liabilities | 229,870 | 263,628 |
Non-current operating lease liabilities | 1,070,896 | 0 |
Deferred rent | 0 | 66,132 |
Long-term debt, net | 156,722 | 10,736 |
Other non-current liabilities | 36,603 | 3,906 |
Total liabilities | 1,494,091 | 344,402 |
Commitments and contingencies (Note 8) | ||
Mezzanine equity: | ||
Total mezzanine equity | 0 | 568,483 |
Stockholders’ equity (deficit): | ||
Additional paid-in capital | 918,369 | 43,106 |
Cumulative translation adjustment | 9,298 | 7,299 |
Accumulated deficit | (792,420) | (814,812) |
Total stockholders’ equity (deficit) | 135,267 | (764,406) |
Total liabilities, mezzanine equity and stockholders’ equity (deficit) | 1,629,358 | 148,479 |
Redeemable Convertible Preferred Stock | ||
Mezzanine equity: | ||
Total mezzanine equity | 0 | 518,750 |
Exchangeable Preferred Stock | ||
Mezzanine equity: | ||
Total mezzanine equity | 0 | 49,733 |
Common Stock | ||
Stockholders’ equity (deficit): | ||
Common stock and exchangeable common stock | 20 | 1 |
Post-Combination Exchangeable Common Shares | ||
Stockholders’ equity (deficit): | ||
Common stock and exchangeable common stock | 0 | 0 |
Exchangeable AA Common Stock | ||
Stockholders’ equity (deficit): | ||
Common stock and exchangeable common stock | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit loss | $ 3,291 | $ 4,127 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Revenue | $ 80,466 | $ 31,558 |
Cost of revenue (excluding depreciation and amortization) | 73,896 | 39,205 |
Operations and support | 48,267 | 25,423 |
General and administrative | 36,981 | 32,149 |
Research and development | 7,625 | 3,319 |
Sales and marketing | 9,461 | 2,511 |
Total costs and expenses | 176,230 | 102,607 |
Loss from operations | (95,764) | (71,049) |
Interest expense, net and other expense (income), net: | ||
Interest expense, net | 8,202 | 3,827 |
Change in fair value of SPAC Warrants | (26,324) | 0 |
Change in fair value of Earn Out liability | (73,177) | 0 |
Change in fair value of share-settled redemption feature and gain on conversion of Convertible Notes | (29,512) | 0 |
Other expense, net | 2,624 | 3,642 |
Total interest expense, net and other expense (income), net | (118,187) | 7,469 |
Income (loss) before income taxes | 22,423 | (78,518) |
Provision for income taxes | 31 | 23 |
Net income (loss) | $ 22,392 | $ (78,541) |
Net income (loss) per share attributable to common stockholders: | ||
Basic (in dollars per share) | $ 0.11 | $ (7.37) |
Diluted (in dollars per share) | $ (0.18) | $ (7.37) |
Weighted average shares used to compute net income (loss) per share attributable to common stockholders: | ||
Basic (in shares) | 176,326,658 | 10,656,458 |
Diluted (in shares) | 171,827,058 | 10,656,458 |
Other comprehensive income (loss): | ||
Net income (loss) | $ 22,392 | $ (78,541) |
Change in foreign currency translation adjustment | 1,999 | 1,145 |
Comprehensive income (loss) | $ 24,391 | $ (77,396) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Pro Forma | Previously Reported | Sonder Legacy Warrants | Delayed Draw Warrants | Additional Paid-in Capital | Additional Paid-in CapitalPro Forma | Additional Paid-in CapitalPreviously Reported | Additional Paid-in CapitalSonder Legacy Warrants | Additional Paid-in CapitalDelayed Draw Warrants | Accumulated Other Comprehensive Income (loss) | Accumulated Other Comprehensive Income (loss)Pro Forma | Accumulated Other Comprehensive Income (loss)Previously Reported | Accumulated Deficit | Accumulated DeficitPro Forma | Accumulated DeficitPreviously Reported | Redeemable Convertible Preferred Stock | Redeemable Convertible Preferred StockPro Forma | Redeemable Convertible Preferred StockPreviously Reported | Redeemable Convertible Preferred StockRevision of Prior Period, Adjustment | Exchangeable Preferred Stock | Exchangeable Preferred StockPro Forma | Exchangeable Preferred StockPreviously Reported | Exchangeable Preferred StockRevision of Prior Period, Adjustment | Common StockCommon Stock | Common StockCommon StockPro Forma | Common StockCommon StockPreviously Reported | Common StockCommon StockRevision of Prior Period, Adjustment | Common StockCommon StockSonder Legacy Warrants | Exchangeable AA StockCommon Stock | Exchangeable AA StockCommon StockPro Forma | Exchangeable AA StockCommon StockPreviously Reported | Exchangeable AA StockCommon StockRevision of Prior Period, Adjustment | Post-Combination Exchangeable Common SharesCommon Stock | Post-Combination Exchangeable Common SharesCommon StockPro Forma | Post-Combination Exchangeable Common SharesCommon StockPreviously Reported |
Mezzanine equity, beginning balance (in shares) at Dec. 31, 2020 | 111,121,045 | 75,664,679 | 35,456,366 | 18,474,628 | 12,579,755 | 5,894,873 | ||||||||||||||||||||||||||||||
Mezzanine equity, beginning balance at Dec. 31, 2020 | $ 517,730 | $ 517,730 | $ 49,733 | $ 49,733 | ||||||||||||||||||||||||||||||||
Increase (Decrease) in Mezzanine Equity | ||||||||||||||||||||||||||||||||||||
Issuance of Series E Convertible Preferred Stock, net of issuance costs (in shares) | 136,390 | |||||||||||||||||||||||||||||||||||
Issuance of Series E Convertible Preferred Stock, net of issuance costs | $ 1,020 | |||||||||||||||||||||||||||||||||||
Mezzanine equity, ending balance (in shares) at Mar. 31, 2021 | 111,257,435 | 18,474,628 | ||||||||||||||||||||||||||||||||||
Mezzanine equity, ending balance at Mar. 31, 2021 | $ 518,750 | $ 49,733 | ||||||||||||||||||||||||||||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 10,529,340 | 7,169,758 | 3,359,582 | 13,859,669 | 9,437,358 | 4,422,311 | ||||||||||||||||||||||||||||||
Beginning balance at Dec. 31, 2020 | $ (500,870) | $ (500,870) | $ 13,898 | $ 13,898 | $ 5,666 | $ 5,666 | $ (520,435) | $ (520,435) | $ 1 | $ 1 | ||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity (Deficit) | ||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options (in shares) | 379,462 | |||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | 746 | 746 | ||||||||||||||||||||||||||||||||||
Stock-based compensation | 14,153 | 14,153 | ||||||||||||||||||||||||||||||||||
Components of comprehensive loss: | ||||||||||||||||||||||||||||||||||||
Net income (loss) | (78,541) | (78,541) | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 1,145 | 1,145 | ||||||||||||||||||||||||||||||||||
Ending balance (in shares) at Mar. 31, 2021 | 10,908,802 | 13,859,669 | ||||||||||||||||||||||||||||||||||
Ending balance at Mar. 31, 2021 | (563,367) | 28,797 | 6,811 | (598,976) | $ 1 | |||||||||||||||||||||||||||||||
Mezzanine equity, beginning balance (in shares) at Dec. 31, 2021 | 75,767,000 | 111,271,424 | 75,767,082 | 35,504,342 | 18,460,609 | 12,570,228 | 5,890,381 | |||||||||||||||||||||||||||||
Mezzanine equity, beginning balance at Dec. 31, 2021 | 568,483 | $ 518,750 | $ 518,750 | $ 518,750 | $ 49,733 | $ 49,733 | $ 49,733 | |||||||||||||||||||||||||||||
Increase (Decrease) in Mezzanine Equity | ||||||||||||||||||||||||||||||||||||
Conversion of stock (in shares) | (111,271,424) | (18,460,609) | ||||||||||||||||||||||||||||||||||
Conversion of stock | $ (518,750) | $ (49,733) | ||||||||||||||||||||||||||||||||||
Mezzanine equity, ending balance (in shares) at Mar. 31, 2022 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Mezzanine equity, ending balance at Mar. 31, 2022 | 0 | $ 0 | $ 0 | |||||||||||||||||||||||||||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 12,751,662 | 8,684,246 | 4,067,416 | 13,835,930 | 9,421,190 | 4,414,740 | 0 | 0 | ||||||||||||||||||||||||||||
Beginning balance at Dec. 31, 2021 | (764,406) | $ (764,406) | $ (764,406) | $ 43,106 | $ 43,106 | $ 7,299 | $ 7,299 | $ (814,812) | $ (814,812) | $ 1 | $ 1 | |||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity (Deficit) | ||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options (in shares) | 362,943 | |||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | 873 | 873 | ||||||||||||||||||||||||||||||||||
Conversion of Sonder Legacy Warrants from liabilities to equity | 2,111 | 2,111 | ||||||||||||||||||||||||||||||||||
CEO promissory note settlement (in shares) | (2,725,631) | |||||||||||||||||||||||||||||||||||
Conversion of warrants (in shares) | 155,239 | |||||||||||||||||||||||||||||||||||
Conversion of warrants | $ 1,243 | $ 5,598 | $ 1,243 | $ 5,598 | ||||||||||||||||||||||||||||||||
Conversion of Convertible Note (in shares) | 19,017,105 | |||||||||||||||||||||||||||||||||||
Conversion of Convertible Note | 159,173 | 159,172 | $ 1 | |||||||||||||||||||||||||||||||||
Conversion of Preferred stock (in shares) | 111,271,424 | |||||||||||||||||||||||||||||||||||
Conversion of Preferred stock | 518,761 | 518,750 | $ 11 | |||||||||||||||||||||||||||||||||
Conversion of Exchangeable stock (in shares) | (13,835,930) | 32,296,539 | ||||||||||||||||||||||||||||||||||
Conversion of Exchangeable stock | 49,733 | 49,733 | ||||||||||||||||||||||||||||||||||
Issuance of common stock in connection with Business Combination and PIPE offering (in shares) | 43,845,835 | |||||||||||||||||||||||||||||||||||
Issuance of common stock in connection with Business Combination and PIPE offering | 267,362 | 267,355 | $ 7 | |||||||||||||||||||||||||||||||||
Earn Out liability recognized upon consummation of the merger | (98,117) | (98,117) | ||||||||||||||||||||||||||||||||||
Assumption of SPAC Warrants upon Business Combination | (38,135) | (38,135) | ||||||||||||||||||||||||||||||||||
Stock-based compensation | 6,680 | 6,680 | ||||||||||||||||||||||||||||||||||
Components of comprehensive loss: | ||||||||||||||||||||||||||||||||||||
Net income (loss) | 22,392 | 22,392 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 1,999 | 1,999 | ||||||||||||||||||||||||||||||||||
Ending balance (in shares) at Mar. 31, 2022 | 184,678,577 | 0 | 32,296,539 | |||||||||||||||||||||||||||||||||
Ending balance at Mar. 31, 2022 | $ 135,267 | $ 918,369 | $ 9,298 | $ (792,420) | $ 20 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net income (loss) | $ 22,392 | $ (78,541) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 5,630 | 4,119 |
Share-based compensation | 6,680 | 14,153 |
Bad debt expense | 41 | 56 |
Write-off of capital assets | (6) | 37 |
Amortization of operating lease right-of-use assets | 37,646 | |
Write-off of debt issuance costs | 362 | 0 |
Straight-line rent | 0 | 3,112 |
Unrealized loss on foreign currency transactions | 2,379 | 1,571 |
Amortization of debt issuance costs | 8,750 | 239 |
Amortization of debt discounts | (3,007) | 1,988 |
Change in fair value of share-settled redemption feature and gain on conversion of Convertible Notes | (29,512) | 0 |
Change in fair value of derivative instruments | 0 | 592 |
Change in fair value of warrants | 0 | 1,532 |
Change in fair value of SPAC Warrants | (26,324) | 0 |
Change in fair value of Earn Out liability | (73,177) | 0 |
Other adjustments to net income (loss) | 285 | 7 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,233 | (2,106) |
Prepaid rent | (446) | 7,383 |
Prepaid expenses | (9,408) | (686) |
Other current assets | (2,059) | (30) |
Other non-current assets | 6,488 | (1,765) |
Accounts payable | (22,009) | (3,242) |
Accrued liabilities | 4,742 | 3,390 |
Sales tax payable | 2,963 | 345 |
Deferred revenue | 15,253 | 7,342 |
Operating lease assets and operating lease liabilities, net | (4,754) | |
Other current liabilities | 194 | 5 |
Other non-current liabilities | 2,971 | 191 |
Net cash used in operating activities | (50,693) | (40,308) |
Cash flows from investing activities | ||
Purchase of property and equipment | (10,539) | (1,675) |
Development of internal-use software | (1,077) | (1,001) |
Net cash used in investing activities | (11,616) | (2,676) |
Cash flows from financing activities | ||
Proceeds from Delayed Draw Notes, net of issuance costs of $5,775 | 159,225 | 0 |
Proceeds from Convertible Notes, net of issuance costs of $2,362 | 0 | 162,638 |
Repayment of debt | (24,680) | (2,018) |
Debt extinguishment costs | (3,065) | 0 |
Proceeds from Business Combination and PIPE offering | 325,928 | 0 |
Issuance costs of common stock | (58,555) | 0 |
Proceeds from exercise of stock options | 873 | 746 |
Issuance of redeemable convertible preferred stock | 0 | 1,020 |
Net cash provided by financing activities | 399,726 | 162,386 |
Effects of foreign exchange on cash | (327) | (280) |
Net change in cash and restricted cash | 337,090 | 119,122 |
Cash and restricted cash at the beginning of period | 69,941 | 123,108 |
Cash and restricted cash at end of period | 407,031 | 242,230 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes during the year | 381 | 43 |
Cash paid for interest during the year | 1,873 | 1,082 |
Non-cash disclosure of investing and financing activities: | ||
Accrued purchases of property and equipment | 1,789 | 0 |
Conversion of Convertible Notes | 159,172 | 0 |
Conversion of Legacy Sonder Warrants | 1,243 | 0 |
Reclassification of liability-classified Legacy Sonder Warrants to equity | 2,111 | 0 |
Recognition of Earn Out liability | (98,117) | 0 |
Issuance of Delayed Draw Warrants | 5,598 | 0 |
Reconciliation of cash and restricted cash: | ||
Cash | 406,348 | 241,730 |
Restricted cash | 683 | 500 |
Total cash and restricted cash | $ 407,031 | $ 242,230 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Cash Flows [Abstract] | ||
Delayed Draw Notes, issuance costs | $ 5,775 | |
Convertible Notes, issuance costs | $ 2,362 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Company and Background Sonder Holdings Inc. is headquartered in San Francisco, California, and together with its wholly owned subsidiaries (collectively Sonder) provides short and long-term accommodations to travelers in various cities across North America, Europe and the Middle East. The Sonder units in each multi-family building and each hotel property are selected, designed and managed directly by Sonder. As used herein, “Sonder,” “we,” “our,” the “Company” and similar terms include Sonder and its subsidiaries, unless the context indicates otherwise. On January 18, 2022, Sonder consummated the previously announced business combination by and among Gores Metropoulos II, Inc. (GMII), Sunshine Merger Sub I, Inc. (First Merger Sub), a direct, wholly-owned subsidiary of Second Merger Sub (as defined below), Sunshine Merger Sub II, LLC, a direct, wholly-owned subsidiary of GMII (Second Merger Sub), and Sonder Operating Inc., a Delaware corporation formerly known as Sonder Holdings Inc. (Legacy Sonder) (the Business Combination). Refer to Note 16. for details of the transaction. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP, U.S. GAAP, or generally accepted accounting principles). The condensed consolidated financial statements include the accounts of Sonder Holdings Inc., its wholly owned subsidiaries, and one variable interest entity (VIE) for which it is the primary beneficiary in accordance with consolidation accounting guidance. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of Sonder, the accompanying unaudited condensed consolidated financial statements contain all adjustments, including normal recurring adjustments, necessary to present fairly its financial position as of March 31, 2022, its results of operations and comprehensive income (loss), mezzanine equity and stockholders’ equity (deficit), and cash flows for the three months ended March 31, 2022 and 2021. Sonder’s condensed consolidated results of operations and comprehensi ve income (loss), mezzanine equity and stockholders’ equity (deficit ), and cash flows for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the full year. Sonder consolidates its VIE in which it holds a variable interest and is the primary beneficiary. Sonder is the primary beneficiary when it (1) has the power to direct the activities that most significantly impact the economic performance of this VIE and (2) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to this VIE. As a result, Sonder consolidates the assets and liabilities of this VIE. If Sonder is not deemed to be the primary beneficiary in a VIE, it accounts for the investment or other variable interest in a VIE in accordance with applicable U.S. GAAP. As of March 31, 2022 and December 31, 2021, Sonder’s consolidated VIE was not material to the condensed consolidated financial statements. COVID-19 Pandemic The ongoing impact of the COVID-19 pandemic on the global economy as well as whether and to what extent additional variants or resurgences of the virus occur and the extent to which COVID-19 will continue to adversely impact Sonder remains uncertain. Sonder’s financial results for all of 2021 and the first quarter of 2022 were materially adversely affected by the COVID-19 pandemic, and the pandemic may continue to materially adversely impact business operations, results of operations and liquidity in the near term and possibly longer. The extent of the recovery is uncertain and will be largely dependent on the effectiveness of COVID-19 prevention and treatment against prevalent COVID-19 strains in the cities and countries in which Sonder operates. Use of Estimates The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of income and expense during the reporting periods. Such management estimates include revenue recognition, bad debt allowance, the fair value of share-based awards, valuation of common stock, estimated useful life of software development costs, valuation of intellectual property and intangible assets, contingent liabilities, and valuation allowance for deferred tax assets, among others. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from those estimates. Deferred Transaction Costs Deferred transaction costs consist of expenses incurred in connection with Sonder becoming publicly traded, including legal, accounting, printing, and other related costs. Since Sonder became publicly traded, these deferred costs have been reclassified to stockholders’ equity (deficit) and recorded against the proceeds from the transaction. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (“ FASB ”) issued Accounting Standards Update (“ ASU ”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments. This guidance also eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. For public companies, the guidance is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted. Sonder has early adopted ASU 2020-06 beginning January 1, 2021, and the adoption did not have a material impact on its condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which has subsequently been amended by ASUs 2018-01, 2018-10, 2018-11, 2018-20, 2019-01, 2019-10 and 2020-05. The guidance requires the recognition of right of use (ROU) assets and lease liabilities for substantially all leases under U.S. GAAP. The guidance retains a distinction between finance leases and operating leases, and the classification criteria for distinguishing between finance leases and operating leases are substantially similar to that under previous U.S. GAAP. The expense recognition and cash flow treatment arising from either a finance lease or operating lease by a lessee have not changed significantly from previous U.S. GAAP. For operating leases, a lessee is required to do the following: (i) recognize a right-of-use (ROU) asset and a lease liability, initially measured at the present value of the lease payments, on the condensed consolidated balance sheets; (ii) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis; and (iii) classify all cash payments within operating activities in the statement of cash flows. ASU 2016-02 is effective for public entities and employee benefit plans that file or furnish financial statements with or to the SEC for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years and is effective for all other entities for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, except for employee benefit plans that file or furnish financial statements with or to the SEC or not-for-profit entities. Early adoption is allowed. In November 2019, the FASB issued amended guidance which defers the effective date for emerging growth companies (EGCs) for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. We implemented ASC 842 as of January 1, 2022. The most significant effects of Topic 842 were the recognition of $1,133.8 million in operating lease right-of-use assets, $143.0 million of current operating lease liabilities, $1,070.9 million of non-current operating lease liabilities, and a $66.1 million reduction to deferred rent, which was recorded as a reduction the ROU asset measured on adoption date. Sonder applied Topic 842 to all leases as of January 1, 2022, with comparative periods continuing to be reported under Topic 840. As part of the adoption of Topic 842, Sonder carried forward the assessment from Topic 840 of whether our contracts contain or are leases, the classification of leases, and remaining lease terms. See Note 6. Leases for further details. In December 2019, the FASB issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The objective of this element of the initiative is to simplify the accounting for income taxes by removing certain exceptions to general principles in ASC 740 and by clarifying and amending guidance that already exists within US generally accepted accounting principles (US GAAP). ASU 2019-12 was effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, and for all other entities for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Sonder has adopted this standard effective January 1, 2022, but there was no impact on Sonder’s condensed consolidated financial statements. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables — Nonrefundable Fees and Other Costs , which clarifies when an entity should assess whether a callable debt security is within the scope of accounting guidance, which impacts the amortization period for nonrefundable fees and other costs. For public entities, the guidance is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early application is not permitted. For all other entities, the guidance is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early application is permitted for all other entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Upon adoption, the amendments are to be applied on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. Sonder adopted the standard as of January 1, 2022, but it did not have any impact on its condensed consolidated financial statements. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which has subsequently been amended by ASUs 2018-19, 2019-04, 2019-05, 2019-10 and 2019-11. The guidance changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance replaces the current ‘incurred loss’ model with an ‘expected loss’ approach. This generally will result in the earlier recognition of allowances for losses and requires increased disclosures. ASU 2016-13 is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, and is effective for all other entities for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021, with early adoption permitted. In November 2019, the FASB issued amended guidance which defers the effective date for emerging growth companies (EGCs) for fiscal years beginning after December 15, 2022, and interim periods therein. Sonder is currently evaluating the impact ASU 2016-13 will have on its condensed consolidated financial position, results of operations, and cash flows. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) , which was subsequently amended by ASU 2021-04. The guidance provides optional expedients and exceptions to contract modifications and hedging relationships that reference the London Interbank Offered Rate or another reference rate expected to be discontinued. The standard is effective upon issuance through December 31, 2022 and may be applied at the beginning of the interim period that includes March 12, 2020 or any date thereafter. Sonder does not have any hedging relationships and currently does not have material contracts impacted by reference rate reform; however, Sonder will continue to assess contracts through December 31, 2022. In August 2020 the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , that simplifies the accounting for certain convertible instruments and contracts potentially settled in an entity’s own shares. The ASU changes the accounting for certain convertible instruments by eliminating two of the separation accounting models which will likely result in more convertible instruments being accounted for as a single unit. ASU 2020-06 is generally effective for public business entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Sonder early adopted ASU 2020-06 beginning January 1, 2021, and the adoption did not have a significant impact on its consolidated financial statements. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue Recognition Sonder generates revenues primarily by providing short-term or month-to-month accommodations to its guests. Sonder’s revenue is generated from stays booked through Sonder.com or the Sonder app, which it refers to as direct revenue, or from stays booked through third party online travel agencies, which it refers to as indirect revenue. The following table sets forth Sonder’s total revenues for the periods shown disaggregated between direct and indirect channels (in thousands): Three Months Ended March 31, 2022 2021 Direct revenue $ 31,934 $ 20,094 Indirect revenue 48,532 11,464 Total revenue $ 80,466 $ 31,558 |
Fair value measurement and fina
Fair value measurement and financial instruments | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement and financial instruments | Fair value measurement and financial instruments Sonder follows the ASC 820 fair value hierarchy established under the standards of U.S. GAAP to determine the fair value of its financial instruments as follows: Level 1 —Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 —Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. Level 3 —Unobservable inputs for which there is little or no market data that is significant to the fair value of the assets or liabilities. Consideration is given to the risk inherent in the valuation technique and the inputs to the model. A financial instrument’s classification within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Liabilities Measured at Fair Value on a Recurring Basis As of December 31, 2021, Sonder did not have observable inputs for the valuation of its preferred stock warrant liabilities or the share-settled redemption feature related to the Convertible Notes. The Convertible Notes were initially separated into debt and the share-settled redemption feature components and assigned a fair value. The value assigned to the debt component was the estimated fair value as of the issuance date of similar debt without the share-settled redemption feature. The difference between the cash proceeds and the estimated fair value represented the value which was assigned to the share-settled redemption feature and recorded as a debt discount. The significant unobservable input used in the fair value measurement of the Convertible notes and the share-settled redemption feature was the fair value of the underlying stock at the valuation measurement date. As of December 31, 2021, the fair value of the preferred stock warrant liabilities was based in part on aggregate equity value indications, consistent with the analysis for Sonder’s common stock valuation using the option pricing method. The significant unobservable input used in the fair value measurement of the preferred stock warrant liabilities was the fair value of the underlying preferred stock at the valuation measurement date. On January 18, 2022, upon the closing of the Business Combination, the outstanding principal and accrued and unpaid interest of the Convertible Notes and the preferred stock warrants were converted to equity. As such, there was no share-settled redemption feature or preferred stock warrant liabilities as of March 31, 2022. SPAC Warrants As part of the GMII initial public offering (GMII IPO), GMII issued 9,000,000 public warrants (the Public Warrants) and 5,500,000 private placement warrants (the Private Placement Warrants), each of which is exercisable at a price of $11.50 per share (the SPAC Warrants). Sonder has determined that the Public Warrants issued in the GMII IPO, which remained outstanding at the closing and became exercisable for shares of common stock, are subject to treatment as a liability. As of the closing of the Business Combination and March 31, 2022, Sonder utilized a Monte Carlo simulation methodology to value the Public Warrants using Level 3 inputs, as Sonder did not have observable inputs for the valuation. The significant unobservable inputs used in the fair value measurement of the Public Warrants liability are related to expected share-price volatility of 45.3% and the expected term of 4.8 years. The public warrants were valued at $0.81 per warrant at March 31, 2022. The fair value of the Private Placement Warrants was deemed to be equal to the fair value of the Public Warrants since the Private Placement Warrants have similar terms and are subject to substantially the same redemption features as the Public Warrants.Sonder determined that the fair value of each Private Placement Warrant is equivalent to that of each Public Warrant because the transfer of the Private Placement Warrants to anyone outside of a small group of individuals constituting the sponsors would result in the Private Placement Warrants having substantially the same terms as the Public Warrants. As such, the estimated fair value of the Private Placement Warrants is classified as a Level 3 fair value measurement Refer to Note 7. Preferred and Common Stock Warrants for further details on the SPAC Warrants. Earn Out In addition to the consideration paid at the closing of the Business Combination, certain investors may receive their pro rata share of up to an aggregate of 14,500,000 additional shares of Common Stock (the Earn Out) as consideration as a result of the Common Stock achieving certain benchmark share prices as contemplated by the merger agreement. Sonder has determined that the Earn Out is subject to treatment as a liability. Sonder utilized a Monte Carlo simulation methodology to value the Earn Out using Level 2 inputs. The key assumptions used in the Monte Carlo simulation are related to expected share-price volatility, expected term, risk-free interest rate and dividend yield. The expected volatility as of March 31, 2022 was derived from the volatility of comparable public companies. Sonder did not have any assets or liabilities measured at Level 1 as of March 31, 2022 on recurring or non-recurring basis. As of March 31, 2022 , the Earn Out liability, Public Warrants liability and Private Placement warrants liability were recorded in other non-current liabilities in our condensed consolidated balance sheet.The following table summarizes Sonder’s Level 2 and Level 3 financial liabilities measured at fair value on a recurring basis (in thousands): March 31, 2022 Level 2 Level 3 Total Financial liabilities: Other non-current liabilities: Earn Out liability $ 24,940 $ — $ 24,940 Public Warrants — 7,290 7,290 Private Placement Warrants — 4,455 4,455 Total financial liabilities measured and recorded at fair value $ 24,940 $ 11,745 $ 36,685 Sonder did not have any asset or liability measured at Level 1 or Level 2 as of December 31, 2021 on recurring or non-recurring basis. The following table summarizes Sonder’s Level 3 financial liabilities measured at fair value on a recurring basis (in thousands): December 31, 2021 Level 3 Financial liabilities: Other non-current liabilities: Preferred stock warrant liabilities $ 3,288 Share-settled redemption feature 30,322 Total financial liabilities measured and recorded at fair value $ 33,610 The following table presents changes in Sonder’s Level 3 liabilities measured at fair value for the three months ended March 31, 2022 (in thousands): March 31, 2022 Level 3 Beginning balance $ 33,610 Public Warrants liability 23,604 Private Placement Warrants liability 14,465 Decrease in fair value of share-settled redemption feature upon conversion of Convertible Notes (30,322) Decrease in fair value of Public Warrants liability (16,314) Decrease in fair value of Private Placement Warrants liability (10,010) Conversion of preferred stock warrant liabilities to equity (3,288) Total financial liabilities measured and recorded at fair value $ 11,745 The following table presents changes in Sonder’s Level 3 liabilities measured at fair value for the year ended December 31, 2021 (in thousands): December 31, 2021 Level 3 Beginning balance $ 1,140 Recognition of share-settled redemption feature 45,156 Decrease in fair value of share-settled redemption feature (14,834) Increase in fair value of preferred stock warrant liabilities 2,148 Total financial liabilities measured and recorded at fair value $ 33,610 As of December 31, 2021, the share-settled redemption feature and the preferred stock warrant liabilities were recorded in convertible notes and other non-current liabilities, respectively, in our condensed consolidated balance sheet. There were no transfers of financial instruments between valuation levels during the three months ended March 31, 2022 and the year ended December 31, 2021. Sonder estimates that the fair value of its restricted cash, accounts receivable, prepaid rent, prepaid expenses, other current assets, accounts payable, accrued liabilities, sales tax payable, deferred revenue, current portion of long-term debt, convertible notes and other current liabilities approximates carrying value due to the relatively short maturity of the instruments. The carrying value of Sonder’s long-term debt approximates fair value because it bears interest at market rate and all other terms are also reflective of current market terms. The fair value of the warrants (Delayed Draw Warrants) issued in connection with the delayed draw term loan (Delayed Draw Notes) was estimated by separating the Delayed Draw Notes into the debt and warrants components and assigning a fair value to each component. The value assigned to the debt component was the estimated fair value as of the issuance date of similar debt without the warrants. The difference between the cash proceeds and the estimated fair value represented the value which was assigned to the warrants and recorded as a debt discount. As of the closing of the Business Combination, the fair value of the Delayed Draw Warrants was $5.6 million and was included in additional paid in capital in the condensed consolidated balance sheet. These assumptions are inherently subjective and involve significant management judgment. Any change in fair value is recognized as a component of other income (expense), net, on the condensed consolidated statements of operations and comprehensive income (loss). |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Delayed Draw Note Purchase Agreement On December 10, 2021, Sonder entered into a note and warrant purchase agreement with certain private placement investors (Purchasers or PIPE Investors) for the sale of Delayed Draw Notes to be available to Sonder following the completion of the Business Combination. The agreement also provided that the Purchasers will be issued warrants to purchase shares of common stock in connection with the transaction. The Delayed Draw Notes have a maturity of five years from the date issuance and are subject to interest on the unpaid principal amount at a rate per annum equal to the three-month secured overnight financing rate (SOFR rate) plus 0.26161% (subject to a floor of 1%) plus 9.0% payable in cash, or for the first two years, payment in kind at the election of Sonder, quarterly in arrears. The Delayed Draw Notes are secured by substantially all of the assets of Sonder. The purchasers of Delayed Draw Notes also received warrants (the Delayed Draw Warrants) to purchase an aggregate of 2,475,000 shares of Sonder’s common stock, each with an exercise price of $12.50 per share. The Delayed Draw Warrants have an expiration date of five years after issuance. The Delayed Draw Note Purchase Agreement also includes customary events of default, including failure to pay the note obligations or other amounts when due, material breach of representations or warranties, breach of negative covenants, failure to perform or comply with obligations under the Delayed Draw Notes or the Delayed Draw Note Purchase Agreement, acceleration of certain other indebtedness, certain judgements against Sonder, legal processes instituted against Sonder or its assets, issues with the enforceability of the Delayed Draw Note Purchase Agreement and ancillary documents, bankruptcy, insolvency or similar proceedings with respect to Sonder, and orders under debtor relief laws. In January 2022, Sonder drew down $165 million in Delayed Draw Notes and issued warrants to purchase 2,475,000 shares of common stock to the Purchasers. As of March 31, 2022, the total long-term debt on the condensed consolidated balance sheet was $156.7 million, consisting of $168.1 million of unpaid principal balance, which included the $165 million principal amount and payment-in-kind (PIK) interest of $3.1 million that was added to the principal balance , net of $5.8 million in issuance costs and $5.6 million in Delayed Draw Warrant liabilities. As of December 31, 2021, the total long-term debt on the condensed consolidated balance sheet consisted of $13.1 million of current portion of the long-term debt and $10.7 million of non-current portion of long-term debt, consisting of $24.5 million of unpaid principal balance, net of the $0.6 million of deferred loan issuance costs. Long term debt, net consisted of the following (in thousands): March 31, 2022 December 31 Principal balance $ 168,112 $ 24,477 Less: Delayed Draw Warrants liability (5,598) — Less: unamortized deferred issuance costs (5,792) (625) Long term debt, net $ 156,722 $ 23,852 2021 Convertible Promissory Notes In March 2021, pursuant to a note purchase agreement, Sonder issued convertible promissory notes (Convertible Notes) to certain investors for an aggregate principal amount of $165.0 million. The net proceeds from the issuance of the Convertible Notes were approximately $162.4 million after deducting issuance costs of $2.6 million. The Convertible Notes were scheduled to mature on March 12, 2022, unless converted in accordance with the conversion terms prior to such date. The Convertible Notes were convertible either automatically, at the option of holders, or at the option of Sonder upon the occurrence of certain specified events. In January 2022, upon the closing of the Business Combination, the outstanding principal and accrued and unpaid interest of the Convertible Notes were automatically converted into 19,017,105 shares of common stock for a value of $159.2 million. Upon the conversion, Sonder recognized a gain on conversion of $29.5 million as a result of a change in the fair value of the share-settled redemption feature and $159.2 million additional-paid-in-capital. Sonder also recognized the change in fair value of the share-settled redemption feature of $30.3 million, expense related to the debt discount of $10.0 million and interest expense of $1.4 million. 2018 Loan and Security Agreement In December 2018, Legacy Sonder entered into a loan and security agreement (the 2018 Loan and Security Agreement) with certain venture lenders that provided aggregate borrowing capacity of $50.0 million. As of December 31, 2021, the current portion of the long-term debt was $13.1 million on the consolidated balance sheet and the total non-current portion of the long-term debt on the consolidated balance sheet was $10.7 million, consisting of $11.3 million of unpaid principal balance, net of the $0.6 million of deferred loan issuance costs. Unused commitments under the 2018 Loan and Security Agreement as of December 31, 2021 were $25.0 million. Interest expense on the term loans totaled $4.9 million for the year ended December 31, 2021, and was recorded in interest expense, net in the condensed consolidated statements of operations and comprehensive income (loss). In January 2022, Sonder paid down $24.5 million in outstanding principal of the 2018 Loan and Security Agreement and $2.5 million in debt extinguishment costs at the closing of the Business Combination. Sonder also recognized $0.6 million of early termination fees, $0.4 million of the write off of deferred financing fees, and $0.2 million of interest expense in connection with the repayment of this 2018 Loan and Security Agreement. Credit Facility 2020 Credit Facility In February 2020 , Legacy Sonder entered into a revolving credit agreement (the 2020 Credit Facility) that provides an aggregate revolving capacity of $50.0 million, which may be borrowed as revolving loans or used for the issuance of letters of credit. Loans under the 2020 Credit Facility may be base rate loans or Eurodollar rate loans, plus a margin of 2.00% per annum. The 2020 Credit Facility includes (i) a letter of credit fee for each letter of credit equal to 1.50% per annum times amount available to be drawn under such letter of credit and (ii) a non-use fee equal to 0.25% times the actual daily amount by which the aggregate commitments provided by facility exceed the sum of the outstanding amount of loans and letters of credit. All outstanding loan balances are due on February 21, 2023, the maturity date for the 2020 Credit Facility. Outstanding balances may be repaid prior to maturity without penalty. The extensions of credit under the 2020 Credit Facility are guaranteed by certain of Sonder’s subsidiaries and secured on a senior basis by a lien on substantially all of Sonder’s and certain of its subsidiaries’ assets. The 2020 Credit Facility contains customary affirmative covenants, such as financial statement reporting requirements and maintenance of insurance, as well as customary negative covenants, such as restrictions on Sonder’s ability to incur debt and liens, make investments, dispose of assets, pay dividends and repurchase stock, enter into transactions with affiliates and undergo fundamental changes such as dissolution or disposal of assets except so long as no default exists. The 2020 Credit Facility provides for a minimum EBITDA covenant and a covenant to maintain liquidity at least equal to the amount outstanding under the 2020 Credit Facility; provided that if liquidity is less than the amount outstanding plus $25.0 million, Sonder must provide cash collateral equal to 105% of the amount outstanding. The 2020 Credit Facility also includes customary events of default, including, among other things, payment defaults, covenant defaults, breach of representations and warranties, cross-defaults to other material debt, bankruptcy and insolvency events of default, judgment defaults and change of control defaults. Upon the occurrence of an event of default under the 2020 Credit Facility, the lender has the right to terminate its commitments to provide additional loans, declare all borrowings outstanding, together with accrued and unpaid interest and fees, to be immediately due and payable, increase the applicable interest rates by 2%, and exercise rights and remedies, including by way of initiating foreclosure proceedings against the collateral securing the obligations under the agreement. As of March 31, 2022, Sonder was in compliance with all financial covenants, there were no borrowings outstanding on the 2020 Credit Facility, and outstanding letters of credit totaled $27.6 million. As of December 31, 2021, Sonder was in compliance with all financial covenants, and there were no borrowings outstanding on the 2020 Credit Facility. 2020 Québec Credit Facility In December 2020, a Canadian subsidiary of Sonder entered into an agreement (2020 Québec Credit Facility) with Investissement Québec, a Quebecois public investment entity, that provides a loan facility of CAD $25.0 million and an additional loan of CAD $5.0 million referred to as a conditional-refund financial contribution (CRFC), which Sonder is not obligated to repay if it satisfies certain milestones relating to the Project (as defined below). The 2020 Québec Credit Facility provides an incentive for expanding Sonder’s operations in Canada (the Project), including establishing Sonder’s Canadian head office and increasing Sonder’s payroll there starting January 1, 2021. The disbursements of the loan and CRFC are based on a percentage of the increase in the accrued and paid gross payroll. The loan and the CRFC will bear interest at a fixed rate of 6% per year for a period of 10 years starting from the first date of the loan disbursement. The amount of principal and accrued and capitalized interest on the CRFC that Sonder must repay can be reduced up to $5.0 million if Sonder achieves certain milestones, including job creation and preservation and cumulative gross payroll milestones. In the event that Sonder does not complete the Project, the outstanding loan and CRFC and related interest become immediately due. An assessment fee of CAD $0.3 million was paid upon acceptance of the credit facility. The 2020 Québec Credit Facility is secured by a lien on substantially all of the Canadian subsidiary’s assets and is guaranteed by Sonder. The 2020 Québec Credit Facility contains customary affirmative covenants, such as maintenance requirement of the Canadian subsidiary’s operations in Québec, maintenance and creation of jobs in Québec, and financial statement reporting requirements, as well as customary negative covenants, such as declaring dividends, voluntary dissolution or liquidation and relocating substantial portion of its assets outside of Québec without prior written approval. As of March 31, 2022, Sonder was in compliance with all financial covenants, and there were no borrowings or CRFC outstanding on the 2020 Québec Credit Facility. As of December 31, 2021, Sonder was in compliance with all financial covenants, and there were no borrowings or CRFC outstanding on the 2020 Québec Credit Facility. Restricted Cash Throughout 2022 and 2021, Sonder entered into multiple cash collateral agreements in connection with the issuance of letters of credit and corporate credit cards programs. As of March 31, 2022 and December 31, 2021, Sonder had $0.7 million and $0.2 million, respectively, of cash collateral which was considered to be restricted cash. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases Sonder leases buildings or portions of buildings for guest usage, warehouses to store furniture, and corporate offices under noncancellable operating lease agreements, which expire through 2039. Sonder is required to pay property taxes, insu rance and maintenance costs for certain of these facilities. Sonder adopted ASC 842 as of January 1, 2022 using the modified retrospective approach. This approach allows entities to either apply the new lease standard to the beginning of the earliest period presented or only to the condensed consolidated financial statements in the period of adoption without restating prior periods. Sonder has elected to apply the new guidance at the date of adoption without restating prior periods. In addition, Sonder elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed it to carry forward the historical determination of contracts as leases, lease classification and not reassess initial direct costs for historical lease arrangements. Accordingly, previously reported financial statements, including footnote disclosures, have not been recast to reflect the application of the new standard to all comparative periods presented. Sonder has lease agreements with lease and non-lease components, including embedded leases, and has elected not to utilize the practical expedient to account for lease and non-lease components together, rather Sonder is accounting for the lease and non-lease components separately on the consolidated financial statements. Operating lease right-of-use (ROU) assets are included within operating lease right-of-use assets in the condensed consolidated balance sheet. The corresponding operating lease liabilities are included within current operating lease liabilities and non-current operating lease liabilities on Sonder’s condensed consolidated balance sheet as of March 31, 2022. ROU assets represent Sonder’s right to use an underlying asset for the lease term and lease liabilities represent Sonder’s obligation to make lease payments arising from the lease. Adoption of the new lease standard had a material impact on Sonder’s condensed consolidated financial statements. The most significant impacts were the (i) recording of ROU assets of $1.1 billion, and (ii) recording lease liabilities of $1.2 billion, as of January 1, 2022 on the condensed consolidated balance sheets and condensed consolidated statement of cash flows. Sonder also reclassified prepaid expenses of $0.2 million and the deferred rent balance, including tenant improvement allowances, and other liability balances of $31.8 million relating to Sonder’s existing lease arrangements as of December 31, 2021, into the ROU asset balance as of January 1, 2022. The standard did not materially impact Sonder’s condensed consolidated statement of operations and comprehensive income (loss). Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Sonder’s assessed lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. Certain operating leases provide for annual increases to lease payments based on an index or rate. Sonder estimates the annual increase in lease payments based on the index or rate at the lease commencement date, for both Sonder’s historical leases and for new leases commencing after January 1, 2022. Components of operating lease expense were as follows (in thousands): Three Months Ended March 31, 2022 Operating lease cost $ 62,947 Short-term lease cost 2 Variable lease cost 643 Total operating lease cost $ 63,592 Supplemental information related to operating leases was as follows (in thousands): Three Months Ended March 31, 2022 Cash payments for operating leases $ 49,765 New operating lease ROU assets obtained in exchange for operating lease liabilities 114,900 Weighted average remaining lease term 7.59 Weighted average discount rate 9.3 % As of March 31, 2022, remaining maturities of operating lease obligations are as follows (in thousands): As of March 31, 2022 Amount remaining nine months of 2022 $ 185,445 2023 285,977 2024 246,659 2025 229,232 2026 199,287 2027 152,416 Thereafter 448,309 Gross lease payments 1,747,325 Less imputed interest (506,415) Total operating lease obligations, net $ 1,240,910 Sonder does not have material lease receivables from noncancellable lease contracts that would reduce the total contractual operating lease obligations. As of March 31, 2022, we have entered into leases that have not yet commenced with future lease payments totaling $1.75 billion, excluding purchase options, that are not yet recorded on our condensed consolidated balance sheets and are not reflected in the above table. These leases will commence between 2022 and 2026 with non-cancelable lease terms of one to 16 years. Rental expense for operating leases for the three months ended March 31, 2022 and 2021 was $65.1 million and $37.9 million, respectively, of which $63.6 million and $35.9 million, respectively, is recognized in cost of revenues, $0.7 million and $0.9 million, respectively, in operations and support, and $0.8 million and $1.1 million, respectively, in general and administrative. Supplemental Information for Comparative Periods As of December 31, 2021, prior to the adoption of Topic 842, future minimum payments lease payments under non-cancelable operating leases were as follows (in millions): As of December 31, 2021 Amount 2022 $ 279,093 2023 366,299 2024 418,156 2025 433,541 2026 403,582 Thereafter 1,641,237 Total minimum future lease payments $ 3,541,908 |
Preferred and Common Stock Warr
Preferred and Common Stock Warrants | 3 Months Ended |
Mar. 31, 2022 | |
Warrants and Rights Note Disclosure [Abstract] | |
Preferred and Common Stock Warrants | Preferred and Common Stock Warrants Preferred Stock Warrants Sonder had the following preferred stock warrants outstanding as of December 31, 2021. The number outstanding and exercise price are prior to the application of the merger exchange ratio in the Business Combination, which closed on January 18, 2022: Type of Warrant Number Outstanding Issuance Date Exercise Price Expiration Date Series A 59,440 10/20/2016 $ 1.36 10/20/2026 Series B 57,696 1/30/2018 $ 2.40 1/30/2028 Series C 218,417 12/28/2018 $ 5.04 12/28/2025 Series D 71,456 2/21/2020 $ 10.50 2/21/2027 In January 2022, upon the closing of the Business Combination, (i) the Series A and Series B preferred stock warrants were converted into 150,092 post combination shares of Sonder’s common stock for a value of $1.2 million, and (ii) the Series C and Series D warrants automatically converted into warrants to purchase shares of Sonder common stock. The warrants previously exercisable for Series C and Series D preferred stock are accounted for as equity in accordance with FASB ASC Topic 815-40 “Derivatives and Hedging – Contracts in Entity’s Own Equity.” Upon the closing of the Business Combination, Sonder reclassified $2.0 million related to such warrants from other non-current liabilities to equity in the condensed consolidated balance sheet. Common Stock Warrants Delayed Draw Warrants In January 2022, pursuant to its note and warrant purchase agreement with certain PIPE Investors, Sonder issued $165 million in aggregate principal amount of Delayed Draw Notes and 2,475,000 delayed draw warrants (Delayed Draw Warrants) to the PIPE Investors.The warrants are exercisable for shares of common stock at an exercise price of $12.50 per share. The Delayed Draw Warrants have an expiration date five years after issuance. The purchasers of the Delayed Draw Notes were also provided with customary registration rights for the shares issuable upon exercise of the Delayed Draw Warrants. The Delayed Draw Warrants are accounted for as equity-classified warrants in accordance with FASB ASC Topic 815-40 “Derivatives and Hedging – Contracts in Entity’s Own Equity.” Upon the closing of the Business Combination the value of the Delayed Draw Warrants was $5.6 million and was recorded within additional paid in capital in the condensed consolidated balance sheet. Public Warrants Prior to the Business Combination, GMII issued 9,000,000 public warrants (Public Warrants), which remained outstanding at the closing and became exercisable for shares of common stock. Each whole Public Warrant entitles the registered holder to purchase one whole share of common stock at a price of $11.50 per share, subject to certain adjustments. A warrant holder may exercise its Public Warrants only for a whole number of shares of common stock. This means that only a whole Public Warrant may be exercised at any given time by a warrant holder. No fractional Public Warrants were issued upon separation of the units and only whole Public Warrants trade. Accordingly, unless a registered holder purchased at least five units, they were not able to receive or trade a whole Public Warrant. The Public Warrants will expire on January 18, 2027 (five years after the consummation of the Business Combination), at 5:00 p.m., New York City time, or earlier upon redemption or liquidation. The Public Warrants are accounted for as liabilities as there are terms and features that do not qualify for equity classification in FASB ASC Topic 815-40 “Derivatives and Hedging – Contracts in Entity’s Own Equity.” The fair value of the Public Warrants at January 18, 2022 was a liability of $23.7 million, which was recorded in other non-current liabilities in the condensed consolidated balance sheet upon the closing of the Business Combination. At March 31, 2022, the fair value decreased to $7.3 million and was recorded in other non-current liabilities in the condensed consolidated balance sheet. The change in fair value of $16.4 million is reflected as other income in the condensed consolidated statements of operations and comprehensive income (loss). Private Placement Warrants Prior to the closing of the Business Combination, GMII issued 5,500,000 private placement warrants (Private Placement Warrants). The Private Placement Warrants have terms and provisions that are identical to those of the Public Warrants sold as part of the units in the GMII IPO, except that the Private Placement Warrants may be physical (cash) or net share (cashless) settled and are not redeemable so long as they are held by Gores Metropoulos Sponsor II, LLC (the Sponsor) or its permitted transferees, and are entitled to certain registration rights. The sale of the Private Placement Warrants was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act. The Private Placement Warrants are accounted for as liabilities as there are terms and features that do not qualify for equity classification in FASB ASC Topic 815-40 “Derivatives and Hedging – Contracts in Entity’s Own Equity.” The fair value of the Private Placement Warrants at January 18, 2022 was a liability of $14.5 million, which was recorded in other non-current liabilities in the condensed consolidated balance sheet. At March 31, 2022, the fair value decreased to $4.5 million and was recorded in other non-current liabilities in the condensed consolidated balance sheet. The change in fair value of $10.0 million is reflected as other income in the condensed consolidated statements of operations and comprehensive income (loss). The condensed consolidated statements of equity (deficit) reflect the closing of the Business Combination on January 18, 2022. As Legacy Sonder was deemed the accounting acquirer in the Business Combination with GMII, all periods prior to the consummation date reflect the balances and activity of Legacy Sonder. The balances as of December 31, 2021 from the consolidated financial statements of Legacy Sonder as of that date, share activity (redeemable convertible preferred stock, exchangeable shares, and common stock) and per share amounts were retroactively adjusted, where applicable, using the recapitalization exchange ratio of 1.4686. All redeemable convertible preferred stock classified as mezzanine equity was converted into common stock, and reclassified into permanent equity as a result of the Business Combination. Upon the consummation of the Business Combination, each share of Sonder Canada exchangeable common shares was exchanged into a new series of the same class of virtually identical Sonder Canada Exchangeable Common Shares (Post-Combination Exchangeable Common Shares) exchangeable for Sonder common stock. At March 31, 2022, Sonder had 32,296,539 Post-Combination Exchangeable Common Shares. All exchangeable shares classified as mezzanine equity were reclassified into permanent equity as a result of the Business Combination. Sonder’s amended and restated certificate of incorporation following the Business Combination authorizes the issuance of 690,000,000 shares, consisting of (a) 440,000,000 shares of general common stock (General Common Stock), including (i) 400,000,000 shares of common stock, and (ii) 40,000,000 shares of Special Voting Common Stock (Special Voting Common Stock), and (b) 250,000,000 shares of preferred stock, par value $0.0001 per share (Preferred Stock). Legacy Sonder Redeemable Convertible Preferred Stock Upon the consummation of the Business Combination, all the redeemable convertible preferred stock were automatically converted into 111,271,424 shares of post-combination Sonder common stock for a value of $518.8 million (share figure was 75,757,555 shares prior to the application of the merger exchange ratio in the Business Combination, which closed on January 18, 2022) . Refer to Note 10. Exchangeable shares and redeemable convertible preferred stock for further details. As of March 31, 2022, Sonder has reserved the following shares of common stock for future issuance: March 31, 2022 Conversion of exchangeable shares 40,000,000 Outstanding stock options 30,802,205 Outstanding restricted stock units (RSUs) 72,254 Outstanding warrants liability 14,499,966 Shares issuable pursuant to Earn Out liability 14,500,000 Outstanding Delayed Draw Note warrants liability 2,475,000 Shares available for grant under the ESPP 6,564,031 Shares available for grant under the 2021 Equity Incentive Plan 28,171,591 Total common stock reserved for future issuance 137,085,047 As of December 31, 2021, Sonder reserved the following shares of common stock for future issuance: December 31, 2021 Conversion of preferred stock and exchangeable shares (1) 208,995,747 Outstanding stock options 19,865,244 Options available for grant under the 2019 Equity Incentive Plan 1,859,784 Total common stock reserved for future issuance 230,720,775 ____________ (1) Includes the warrants reclassified to equity as of December 31, 2021 and those issued in connection with the 2018 Loan and Security Agreement and related amendment as of December 31, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Surety Bonds A portion of Sonder’s leases are supported by surety bonds provided by affiliates of certain insurance companies. As of March 31, 2022, Sonder had commitments from seven surety providers in the amount of $65.8 million, of which $32.9 million was outstanding. The availability, terms and conditions, and pricing of bonding capacity are dependent on, among other things, continued financial strength and stability of the insurance company affiliates providing the bonding capacity, general availability of such capacity and Sonder’s corporate credit rating. Legal and Regulatory Matters Sonder has been and expects to continue to become involved in litigation or other legal proceedings from time to time, including the matters described below. Except as described below, Sonder is not currently a party to any litigation or legal proceedings that, in the opinion of Sonder’s management, are likely to have a material adverse effect on Sonder’s business. Regardless of outcome, litigation and other legal proceedings can have an adverse impact on Sonder because of defense and settlement costs, diversion of management resources, possible restrictions on our business as a result of settlement or adverse outcomes, and other factors. In late February 2020, Sonder was informed about an investigation underway by the New York City Department of Health and Mental Hygiene relating to possible Legionella bacteria contamination in the water supply at 20 Broad Street, New York, NY (Broad Street Property). Due to the failure of the owner of the Broad Street Property (Broad Street Landlord) to address the Legionella bacteria contamination and the associated health risks posed to Sonder’s guests, Sonder withheld payment of rent to the Broad Street Landlord on grounds of, among other reasons, constructive eviction. On July 30, 2020, the Broad Street Landlord sued Sonder USA Inc., Sonder Canada Inc., and Sonder Holdings Inc. for breach of the lease, seeking no less than $3.9 million in damages. Sonder filed counterclaims against the Broad Street Landlord and the property management company for breach of contract, seeking significant damages. The Broad Street Landlord filed a motion for summary judgment. The hearing and oral argument for the summary judgment motion occurred on December 21, 2021. No ruling was issued by the judge. The motion for summary judgment is now under submission. Sonder intends to vigorously defend itself and believes that the claims of the Broad Street Landlord are without merit. Sonder establishes an accrued liability for loss contingencies related to legal matters when a loss is both probable and reasonably estimable. These accruals represent Sonder’s best estimate of probable los ses. Sonder has recorded an estimated accrual of $3.2 million and $5.3 million in the condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021, respectively. Sonder’s views and estimates related to these matters may change in the future, as new events and circumstances arise and the matters continue to develop. Until the final resolution of legal matters, there may be an exposu re to losses in excess of the amounts accrued. With respect to outstanding legal matters, based on current knowledge, the amount or range of reasonably possible loss will not, either individually or in the aggregate, have a material adverse effect on Sonder’s business, results of operations, financial condition, or cash flows. Legal fees are expensed as incurred. |
Guarantees and Indemnifications
Guarantees and Indemnifications | 3 Months Ended |
Mar. 31, 2022 | |
Guarantees and Product Warranties [Abstract] | |
Guarantees and Indemnifications | Guarantees and Indemnification Indemnifications Sonder has entered into indemnification agreements with all of its directors. The indemnification agreements and its Amended and Restated Bylaws (Bylaws) require Sonder to indemnify these individuals to the fullest extent not prohibited by Delaware law. Subject to certain limitations, the indemnification agreements and Bylaws also require Sonder to advance expenses incurred by its directors. No demands have been made upon Sonder to provide indemnification under the indemnification agreements or the Bylaws, and thus, there are no claims that Sonder is aware of that could have a material adverse effect on its business, results of operations, financial condition, or cash flows. In the ordinary course of business, Sonder has included limited indemnification provisions under certain agreements with parties with whom it has commercial relations of varying scope and terms with respect to certain matters, including losses arising out of its breach of such agreements or out of intellectual property infringement claims made by third parties. It is not possible to determine the maximum potential loss under these indemnification provisions due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. To date, no material costs have been incurred, either individually or collectively, in connection with Sonder’s indemnification provisions. |
Exchangeable shares and redeema
Exchangeable shares and redeemable convertible preferred stock | 3 Months Ended |
Mar. 31, 2022 | |
Temporary Equity Disclosure [Abstract] | |
Exchangeable shares and redeemable convertible preferred stock | Exchangeable shares and redeemable convertible preferred stock Exchangeable Shares Upon the consummation of the Business Combination, each share of Sonder Canada exchangeable common shares was exchanged into a new series of the same class of virtually identical Sonder Canada Exchangeable Common Shares (Post-Combination Exchangeable Common Shares) exchangeable for Sonder common stock. At March 31, 2022 , Sonder had the following authorized and outstanding Post-Combination Exchangeable Common Shares (in thousands except per share amounts): March 31, 2022 Shares Shares Issuance Net Aggregate Post-Combination Exchangeable Common Shares 40,000 32,297 $ 1.54 $ 49,733 $ 49,733 Total exchangeable shares 40,000 32,297 $ 49,733 $ 49,733 The net carrying value of the exchangeable shares was included in additional paid-in capital in our condensed consolidated balance sheet. Sonder had the following authorized and outstanding exchangeable shares (Exchangeable Shares) as of December 31, 2021. The figures below are prior to the application of the merger exchange ratio in the Business Combination, which closed on January 18, 2022 (in thousands except per share amounts): December 31, 2021 Shares Shares Issued and Outstanding Issuance Price Per Share Net Carrying Value Aggregate Liquidation Preference Series AA Common 22,518 9,421 $ — $ — $ — Series Seed 1 2,589 2,589 0.53 1,359 1,372 Series Seed 2 1,209 1,209 0.50 606 605 Series Seed 3 704 704 1.09 787 768 Series A 183 183 1.36 250 250 Series B 2,336 2,336 2.40 5,610 5,605 Series C 3,175 3,175 5.04 15,991 16,003 Series D 2,058 1,953 10.50 20,600 20,600 Series E 421 421 10.77 4,530 4,530 Total exchangeable shares 35,193 21,991 — $ 49,733 $ 49,733 Upon consummation of of the Business Combination, all the Exchangeable Shares were automatically converted into 32,296,539 post-combination shares of Sonder common stock for a value of $49.7 million (share figure was 21,991,418 shares prior to the application of the merger exchange ratio in the Business Combination, which closed on January 18, 2022). Redeemable Convertible Preferred Stock Sonder had the following authorized and outstanding redeemable convertible preferred stock as of December 31, 2021. The figures below are prior to the application of the merger exchange ratio in the Business Combination, which closed on January 18, 2022 ( in thousands except per share amounts) : December 31, 2021 Shares Shares Issuance Net Aggregate Series Seed 1 3,703 785 $ 0.53 $ 269 $ 416 Series Seed 1-A 3,703 328 0.53 $ 174 $ 174 Series Seed 2 1,720 471 0.50 $ 222 $ 235 Series Seed 2-A 1,720 39 0.50 $ 20 $ 20 Series Seed 3 704 — 1.09 $ — $ — Series Seed 3-A 704 — 1.09 $ — $ — Series A 7,023 6,780 1.36 $ 9,241 $ 9,221 Series A-1 7,023 — 1.36 $ — $ — Series B 15,611 13,218 2.40 $ 27,105 $ 31,723 Series B-1 15,611 — 2.40 $ — $ — Series C 19,071 12,144 5.04 $ 56,496 $ 61,204 Series C-1 19,071 3,514 5.04 $ 17,708 $ 17,708 Series D 21,603 3,482 10.50 $ 35,808 $ 36,560 Series D-1 21,603 16,049 10.50 $ 168,518 $ 168,518 Series E 34,933 18,956 10.77 $ 203,189 $ 204,159 Total redeemable convertible preferred stock 173,803 75,767 — $ 518,750 $ 529,938 |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Common Stock | Preferred and Common Stock Warrants Preferred Stock Warrants Sonder had the following preferred stock warrants outstanding as of December 31, 2021. The number outstanding and exercise price are prior to the application of the merger exchange ratio in the Business Combination, which closed on January 18, 2022: Type of Warrant Number Outstanding Issuance Date Exercise Price Expiration Date Series A 59,440 10/20/2016 $ 1.36 10/20/2026 Series B 57,696 1/30/2018 $ 2.40 1/30/2028 Series C 218,417 12/28/2018 $ 5.04 12/28/2025 Series D 71,456 2/21/2020 $ 10.50 2/21/2027 In January 2022, upon the closing of the Business Combination, (i) the Series A and Series B preferred stock warrants were converted into 150,092 post combination shares of Sonder’s common stock for a value of $1.2 million, and (ii) the Series C and Series D warrants automatically converted into warrants to purchase shares of Sonder common stock. The warrants previously exercisable for Series C and Series D preferred stock are accounted for as equity in accordance with FASB ASC Topic 815-40 “Derivatives and Hedging – Contracts in Entity’s Own Equity.” Upon the closing of the Business Combination, Sonder reclassified $2.0 million related to such warrants from other non-current liabilities to equity in the condensed consolidated balance sheet. Common Stock Warrants Delayed Draw Warrants In January 2022, pursuant to its note and warrant purchase agreement with certain PIPE Investors, Sonder issued $165 million in aggregate principal amount of Delayed Draw Notes and 2,475,000 delayed draw warrants (Delayed Draw Warrants) to the PIPE Investors.The warrants are exercisable for shares of common stock at an exercise price of $12.50 per share. The Delayed Draw Warrants have an expiration date five years after issuance. The purchasers of the Delayed Draw Notes were also provided with customary registration rights for the shares issuable upon exercise of the Delayed Draw Warrants. The Delayed Draw Warrants are accounted for as equity-classified warrants in accordance with FASB ASC Topic 815-40 “Derivatives and Hedging – Contracts in Entity’s Own Equity.” Upon the closing of the Business Combination the value of the Delayed Draw Warrants was $5.6 million and was recorded within additional paid in capital in the condensed consolidated balance sheet. Public Warrants Prior to the Business Combination, GMII issued 9,000,000 public warrants (Public Warrants), which remained outstanding at the closing and became exercisable for shares of common stock. Each whole Public Warrant entitles the registered holder to purchase one whole share of common stock at a price of $11.50 per share, subject to certain adjustments. A warrant holder may exercise its Public Warrants only for a whole number of shares of common stock. This means that only a whole Public Warrant may be exercised at any given time by a warrant holder. No fractional Public Warrants were issued upon separation of the units and only whole Public Warrants trade. Accordingly, unless a registered holder purchased at least five units, they were not able to receive or trade a whole Public Warrant. The Public Warrants will expire on January 18, 2027 (five years after the consummation of the Business Combination), at 5:00 p.m., New York City time, or earlier upon redemption or liquidation. The Public Warrants are accounted for as liabilities as there are terms and features that do not qualify for equity classification in FASB ASC Topic 815-40 “Derivatives and Hedging – Contracts in Entity’s Own Equity.” The fair value of the Public Warrants at January 18, 2022 was a liability of $23.7 million, which was recorded in other non-current liabilities in the condensed consolidated balance sheet upon the closing of the Business Combination. At March 31, 2022, the fair value decreased to $7.3 million and was recorded in other non-current liabilities in the condensed consolidated balance sheet. The change in fair value of $16.4 million is reflected as other income in the condensed consolidated statements of operations and comprehensive income (loss). Private Placement Warrants Prior to the closing of the Business Combination, GMII issued 5,500,000 private placement warrants (Private Placement Warrants). The Private Placement Warrants have terms and provisions that are identical to those of the Public Warrants sold as part of the units in the GMII IPO, except that the Private Placement Warrants may be physical (cash) or net share (cashless) settled and are not redeemable so long as they are held by Gores Metropoulos Sponsor II, LLC (the Sponsor) or its permitted transferees, and are entitled to certain registration rights. The sale of the Private Placement Warrants was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act. The Private Placement Warrants are accounted for as liabilities as there are terms and features that do not qualify for equity classification in FASB ASC Topic 815-40 “Derivatives and Hedging – Contracts in Entity’s Own Equity.” The fair value of the Private Placement Warrants at January 18, 2022 was a liability of $14.5 million, which was recorded in other non-current liabilities in the condensed consolidated balance sheet. At March 31, 2022, the fair value decreased to $4.5 million and was recorded in other non-current liabilities in the condensed consolidated balance sheet. The change in fair value of $10.0 million is reflected as other income in the condensed consolidated statements of operations and comprehensive income (loss). The condensed consolidated statements of equity (deficit) reflect the closing of the Business Combination on January 18, 2022. As Legacy Sonder was deemed the accounting acquirer in the Business Combination with GMII, all periods prior to the consummation date reflect the balances and activity of Legacy Sonder. The balances as of December 31, 2021 from the consolidated financial statements of Legacy Sonder as of that date, share activity (redeemable convertible preferred stock, exchangeable shares, and common stock) and per share amounts were retroactively adjusted, where applicable, using the recapitalization exchange ratio of 1.4686. All redeemable convertible preferred stock classified as mezzanine equity was converted into common stock, and reclassified into permanent equity as a result of the Business Combination. Upon the consummation of the Business Combination, each share of Sonder Canada exchangeable common shares was exchanged into a new series of the same class of virtually identical Sonder Canada Exchangeable Common Shares (Post-Combination Exchangeable Common Shares) exchangeable for Sonder common stock. At March 31, 2022, Sonder had 32,296,539 Post-Combination Exchangeable Common Shares. All exchangeable shares classified as mezzanine equity were reclassified into permanent equity as a result of the Business Combination. Sonder’s amended and restated certificate of incorporation following the Business Combination authorizes the issuance of 690,000,000 shares, consisting of (a) 440,000,000 shares of general common stock (General Common Stock), including (i) 400,000,000 shares of common stock, and (ii) 40,000,000 shares of Special Voting Common Stock (Special Voting Common Stock), and (b) 250,000,000 shares of preferred stock, par value $0.0001 per share (Preferred Stock). Legacy Sonder Redeemable Convertible Preferred Stock Upon the consummation of the Business Combination, all the redeemable convertible preferred stock were automatically converted into 111,271,424 shares of post-combination Sonder common stock for a value of $518.8 million (share figure was 75,757,555 shares prior to the application of the merger exchange ratio in the Business Combination, which closed on January 18, 2022) . Refer to Note 10. Exchangeable shares and redeemable convertible preferred stock for further details. As of March 31, 2022, Sonder has reserved the following shares of common stock for future issuance: March 31, 2022 Conversion of exchangeable shares 40,000,000 Outstanding stock options 30,802,205 Outstanding restricted stock units (RSUs) 72,254 Outstanding warrants liability 14,499,966 Shares issuable pursuant to Earn Out liability 14,500,000 Outstanding Delayed Draw Note warrants liability 2,475,000 Shares available for grant under the ESPP 6,564,031 Shares available for grant under the 2021 Equity Incentive Plan 28,171,591 Total common stock reserved for future issuance 137,085,047 As of December 31, 2021, Sonder reserved the following shares of common stock for future issuance: December 31, 2021 Conversion of preferred stock and exchangeable shares (1) 208,995,747 Outstanding stock options 19,865,244 Options available for grant under the 2019 Equity Incentive Plan 1,859,784 Total common stock reserved for future issuance 230,720,775 ____________ (1) Includes the warrants reclassified to equity as of December 31, 2021 and those issued in connection with the 2018 Loan and Security Agreement and related amendment as of December 31, 2021. |
Stockholders_ Equity (Deficit)
Stockholders’ Equity (Deficit) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stockholders’ Equity (Deficit) | Stockholders’ Equity (Deficit) Equity Incentive Plan s 2013 and 2019 Equity Incentive Plans Prior to the Business Combination, Legacy Sonder maintained a stock based compensation plan. Legacy Sonder’s 2013 and 2019 Equity Incentive Plans (Legacy Equity Incentive Plans) provided for the grant of stock-based awards to purchase or directly issue shares of common stock to employees, directors and consultants. Options were granted at a price per share equal to the fair value of the underlying common stock at the date of grant. Stock options generally have a 10-year contractual term and vest over a four-year period starting from the date specified in each agreement. Each Legacy Sonder option from the Legacy Equity Incentive Plans that was outstanding immediately prior to the Business Combination, whether vested or unvested, was converted into an option to acquire a number of shares of common stock (Exchanged Options) equal to the product (rounded down to the nearest whole number) of (i) the number of shares of Legacy Sonder common stock subject to such Legacy Sonder option immediately prior to the Business Combination and (ii) the exchange ratio, at an exercise price per share (rounded up to the nearest whole cent) equal to (A) the exercise price per share of such Legacy Sonder option immediately prior to the consummation of the Business Combination, divided by (B) the exchange ratio. Except as specifically provided in the Business Combination agreement, following the Business Combination, each Exchanged Option will continue to be governed by the same terms and conditions (including vesting and exercisability terms) as were applicable to the corresponding former Legacy Sonder option immediately prior to the consummation of the Business Combination. All stock option activity was retroactively restated to reflect the Exchanged Options. Sonder Holdings Inc. 2021 Management Equity Incentive Plan In connection with the Business Combination, Sonder’s board of directors approved the 2021 management equity incentive plan (2021 Management Equity Incentive Plan) to allow for the issuance of the Earn Out. Holders of Legacy Sonder’s common stock, series AA common exchangeable preferred shares of Sonder Canada Inc. and warrants of Legacy Sonder immediately prior to the effective time of the Business Combination (which holders include certain directors, officers and 5% holders of the Company’s capital stock) may receive their pro rata share of up to an aggregate of 14,500,000 additional shares of common stock as consideration as a result of the common stock achieving certain benchmark share prices as contemplated by the agreement and plan of merger, dated April 29, 2021, as amended on October 27, 2021, by and among GMII, Sunshine Merger Sub I, Inc., Sunshine Merger Sub II, LLC and Legacy Sonder (the Merger Agreement) (each achievement of such a benchmark, a Triggering Event). If no Triggering Event occurs within the period specified in the Merger Agreement, the Company will not be required to issue the Earn Out. Sonder Holdings Inc. 2021 Equity Incentive Plan In connection with the Business Combination, GMII’s stockholders approved the 2021 equity incentive plan (2021 Equity Incentive Plan). The 2021 Equity Incentive Plan became effective upon the consummation of the Business Combination and succeeds Sonder’s Legacy Equity Incentive Plans. Under the 2021 Equity Incentive Plan, Sonder may grant options, stock appreciation rights, restricted stock, restricted stock units (RSUs), and performance awards to employees, directors and consultants. Options are granted at a price per share equal to the fair value of the underlying common stock at the date of grant. Options granted are exercisable over a maximum term of 10 years from the date of grant. RSUs typically have a cliff vesting period of one year and continue to vest quarterly thereafter. The 2021 Equity Incentive Plan permits Sonder to deliver up to (a) a number equal to the lesser of (i) 31,507,349 shares or (ii) 12% of the total number of shares outstanding immediately following the Business Combination (including the number of shares of common stock reserved for issuance upon the exchange of Canadian Exchangeable Shares (as defined in the Merger Agreement) issued in the Sonder Canada Share Capital Reorganization (as defined in the Merger Agreement) corresponding to shares of company special voting stock to be issued immediately following the consummation of the Business Combination), plus (b) any shares subject to stock options or other awards that are assumed in the Business Combination and that, on or after the effective date, expire or otherwise terminate without having been exercised in full, are tendered to or withheld by Sonder for payment of an exercise price or for tax withholding obligations, or are forfeited to or repurchased by Sonder due to failure to vest, with the maximum number of shares to be added to the 2021 Equity Incentive Plan under this clause (ii) equal to 26,171,806 shares. The total number of shares that may be issued under the 2021 Equity Incentive Plan will automatically increase on the first trading day of each calendar year, beginning with calendar year 2022, by a number of shares equal to the least of: (a) 32,820,155 shares; (b) 12.5% of the total number of shares outstanding as of immediately following the consummation of the Business Combination (including the number of shares of common stock reserved for issuance upon the exchange of Canadian Exchangeable Shares (as defined in the Merger Agreement) issued in the Sonder Canada Share Capital Reorganization (as defined in the Merger Agreement) corresponding to shares of company special voting stock to be issued immediately following the consummation of the Business Combination); (c) 5% of the total number of shares outstanding on the last day of the immediately preceding fiscal year; and (d) a lesser number of shares determined by the administrator. Sonder Holdings Inc. 2021 Employee Stock Purchase Plan In connection with the Business Combination, GMII’s stockholders approved the 2021 employee stock purchase plan (ESPP). The ESPP allows eligible employees to purchase shares of Sonder common stock through payroll deductions of up to 15% of their eligible compensation. Shares reserved for issuance under the ESPP is equal to the lessor of (i) 5,251,225 shares of common stock or (ii) two percent (2%) of the outstanding shares of the Dilution Adjusted Common Stock (as defined in the Merger Agreement) as of immediately following the consummation of the Business Combination. The ESPP provides for either (i) a 27 month offering period, or (ii) such shorter period as may be established by the administrator from time to time. At the end of each offering period employees are able to purchase shares at 85% of the lower of the fair value of our common stock on the first trading day of the offering period or on the last day of the offering period. The number of shares of common stock available for issuance under the ESPP will automatically be increased on the first day of each fiscal year, beginning with 2022 and ending with the 2041 fiscal year equal to the least of: (i) 6,564,031 shares of common stock; (ii) 2.5% of the total number of shares of common stock outstanding immediately following the consummation of the Business Combination (including the number of shares of common stock reserved for issuance upon the exchange of Canadian Exchangeable Shares (as defined in the Merger Agreement) issued in the Sonder Canada Share Capital Reorganization (as defined in the Merger Agreement) corresponding to shares of Company Special Voting Stock to be issued immediately following the consummation of the Business Combination); (iii) one percent (1%) of the outstanding shares of Common Stock on the last day of the immediately preceding fiscal year; or (iv) an amount determined by the administrator. Stock-based Compensation Expense Total stock-based compensation expense is as follows (in thousands): Three Months Ended March 31, 2022 2021 Operations and support $ 930 $ 406 General and administrative 4,929 13,491 Research and development 742 255 Sales and marketing 79 1 Total stock-based compensation expense $ 6,680 $ 14,153 Sonder recognizes only the portion of the option award granted that is ultimately expected to vest as compensation expense and elects to recognize gross share-based compensation expense with actual forfeitures recognized as they occur. Fair Value of Stock Options Sonder estimates the fair value of each stock option award using the Black-Scholes-Merton option-pricing model, which utilizes the estimated fair value of Sonder’s common stock and requires the input of the following subjective assumptions: Expected Term — The expected term for options granted to employees, officers, and directors is calculated as based on the Sonder’s historical pattern of option exercise behavior and the period of time they are expected to be outstanding. The expected term for options granted to consultants is determined using the remaining contractual life. Expected Volatility — The expected volatility is based on the average volatility of similar public entities within Sonder’s peer group as Sonder’s stock has not been publicly trading for a long enough period to rely on its own expected volatility. Expected Dividends — The dividend assumption is based on Sonder’s historical experience. To date Sonder has not paid any dividends on its common stock. Risk-Free Interest Rate — The risk-free interest rate used in the valuation method is the implied yield currently available on the United States Treasury zero-coupon issues, with a remaining term equal to the expected life term of Sonder’s options. The following table summarizes the key assumptions used to determine the fair value of Sonder’s stock options granted to employees, non-employees, officers, and directors: Three Months Ended March 31, 2022 2021 Expected term (in years) 4.09 3.99 Expected volatility 55 % 64 % Dividend yield — % — % Risk-free interest Rate 1.79 % 0.41 % Weighted-average grant-date fair value per share $2.13 $4.54 Performance and Market-based Equity Awards On November 15, 2019, the Legacy Sonder Board of Directors (t he Legacy Sonder Board) granted an award to Francis Davidson, Sonder’s CEO, for a total of 5,613,290 options (the 2019 CEO Option Award), all of which Mr. Davidson fully exercised in December 2020 with a promissory note payable to Sonder in the amount of $24.6 million (the Promissory Note). Of the 5,613,290 total options, 2,041,197 options vest in 72 equal monthly installments starting as of October 1, 2017 (the Service-based Options), subject to Mr. Davidson’s continuous employment, and 3,572,093 options are performance-based (the CEO Performance Awards) that vest as follows, subject to Mr. Davidson’s continuous employment at each such event (the Performance Conditions): • 1,530,897 performance awards upon an initial public offering (IPO) if Sonder reaches certain share price targets (the IPO Condition); • 1,020,598 performance awards upon a qualified financing at certain valuation milestones (the Qualified Financing Condition); and • 1,020,598 performance awards upon Sonder achieving a certain market capitalization milestone (the Market Capitalization Condition). The fair value of the 2,041,197 Service-based Options was estimated using the Black-Scholes-Merton pricing model. The grant date fair value of the Service-based Options was $3.2 million and is recognized on a straight-line basis over the term of the award. Sonder recognized $0.9 million and $11.6 million in expense for the CEO Performance Awards in the three months ended March 31, 2022 and in the three months ended March 31, 2021, respectively. The promissory note for $24.6 million represents the aggregate exercise price for the 5,613,290 options that were exercised by Mr. Davidson. The promissory note bears interest at the rate of 2.00% per annum, compounding semiannually. The principal amounts and accrued interest are due upon the earlier of: (i) four years after the issuance, or on December 1, 2023; (ii) the transfer or sale of the shares by the employee without approval by Sonder; or (iii) an initial public offering or an acquisition of Sonder by a public company. The Promissory Note was secured by the shares issued upon exercise of the award and in exchange for the note. While the Promissory Note is full recourse, it is considered to be non-recourse for accounting purposes and thus was not recorded in the condensed consolidated balance sheets as a receivable. As of December 31, 2021, the aggregate borrowings outstanding under the Promissory Note, including interest, was $25.2 million, respectively. On January 14, 2022, the aggregate outstanding principal amount and interest under the Promissory Note was repaid in full by Mr. Davidson selling to Sonder 1,855,938 shares of Legacy Sonder’s common stock at a repurchase price of $13.85 per Legacy Sonder’s common share (number of shares and amount per share is not adjusted for the application of the merger exchange ratio in the Business Combination of 1.4686 ), which was equal to the fair value of a share of Legacy Sonder’s common stock as of the repurchase date, for a total aggregate repurchase price of $25.7 million . The repurchase price was offset against and extinguished in full Mr. Davidson’s obligations under the Promissory Note, including the outstanding principal and accrued interest. In the three months ended March 31, 2021, the CEO Performance Awards were modified to accelerate the vesting of the IPO Condition and the Qualified Financing Condition because the Legacy Sonder Board desired to reward Mr. Davidson in leading Sonder to perform above expectations given the worsened business conditions brought about by the unexpected COVID-19 pandemic, especially in the hospitality sector, and at the same time, engaging Sonder in potential strategic transactions valuing Sonder at increased valuations. While the vesting of the options under the Market Capitalization Condition were not accelerated by the Legacy Sonder Board, the Legacy Sonder Board approved a resolution clarifying that the Market Capitalization Condition would be eligible to vest in connection with a business combination with a special purpose acquisition company that otherwise achieves the applicable Market Capitalization Condition using an equivalent share price rather than the market capitalization. In the three months ended March 31, 2022, Sonder recognized $0.9 million in stock-based compensation expense related to the vesting of the Market Capitalization Condition. In the three months ended March 31, 2021, Sonder did not recognized any stock-based compensation expense relating to the vesting of the Market Capitalization Condition. The modification-date fair value of the CEO Performance Awards was estimated using a Monte Carlo simulation. The Monte Carlo simulation utilizes multiple input variables to estimate the probability that performance conditions will be achieved. These variables include Sonder’s expected stock price volatility over the expected term of the award, actual and projected employee stock option exercise behaviors, and the risk-free interest rate for the expected term of the award. Sonder recognizes compensation expense for its performance awards using an accelerated attribution method from the time it is deemed probable that the vesting condition will be met through the time the service-based vesting condition has been achieved. On February 18, 2021, the Legacy Sonder Board granted an award to Mr. Davidson for a total of 3,061,794 options (the 2021 CEO Option Award) that vest upon the successful consummation of the Business Combination and as follows, subject to Mr. Davidson’s continuous employment at each such event: • 1/3 of the options if the average share value is equal to or greater than $25.16 on or prior to December 31, 2023 (the First Market Value Target); • 1/3 of the options if the average share value is equal to or greater than $37.74 on or prior to December 31, 2024 (the Second Market Value Target); and • 1/3 of the options if the average share price is equal to or greater than $44.03 on or prior to December 31, 2025 (the Third Market Value Target). The grant-date fair value of the 2021 CEO Option Award was estimated using the Monte Carlo simulation on the grant date was $1.3 million. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common ShareNet income (loss) per share calculations for all periods prior to the Business Combination have been retrospectively adjusted for the equivalent number of shares outstanding immediately after the Business Combination to effect the reverse recapitalization. Subsequent to the Business Combination, net income (loss) per share was calculated based on the weighted average number of common stock then outstanding. The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except number of shares and per share amounts): Three Months Ended March 31, 2022 2021 Basic net income (loss) per share: Numerator Net income (loss) $ 22,392 $ (78,541) Less: Net income (loss) attributable to convertible preferred stock and exchangeable preferred stockholders (2,872) — Net income (loss) attributable to common stockholders $ 19,520 $ (78,541) Denominator Basic weighted-average common shares used in computing basic net income (loss) per share 176,326,658 10,656,458 Basic net income (loss) per share attributable to common stockholders $ 0.11 $ (7.37) Three Months Ended March 31, 2022 2021 Diluted net income (loss) per share: Numerator Net income (loss) $ 22,392 $ (78,541) Add: Convertible notes interest expense 2,727 — Less: Change in fair value of share-settled redemption feature and gain on conversion of Convertible Notes (29,512) — Less: Change in fair value of SPAC Warrants (26,324) — Net income (loss) attributable to common stockholders $ (30,717) $ (78,541) Denominator Number of shares used in basic net income (loss) per share computation 176,326,658 10,656,458 Weighted-average effect of potentially dilutive securities: Converted Notes 3,803,421 — Private Placement and Public Warrants (8,303,021) — Diluted weighted-average common stock outstanding 171,827,058 10,656,458 Diluted net income (loss) per share attributable to common stockholders $ (0.18) $ (7.37) The following potential common shares outstanding were excluded from the computation of diluted net income (loss) per share because including them would have been anti-dilutive (in thousands): As of March 31, 2022 2021 Options to purchase common stock 30,802 26,588 Common stock subject to repurchase or forfeiture 2,303 2,823 Redeemable convertible preferred stock(1) — 111,258 Exchangeable shares 32,297 32,334 Total common stock equivalents 65,402 173,003 ____________ (1) Includes the warrants reclassified to equity as of March 31, 2022 and those issued in connection with the 2018 Loan and Security Agreement and related amendment as of December 31, 2021 . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesProvision for income taxes for the three months ended March 31, 2022 was $31 thousand, and the effective tax rate for this period was 0%. Provision for income taxes for the three months ended March 31, 2021 was $23 thousand, and the effective tax rate for this period was 0.1%. The difference between Sonder’s effective tax rate and the U.S. statutory rate of 21% was primarily due to a full valuation allowance related to Sonder’s net deferred tax assets. |
Related party transactions
Related party transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactions Francis Davidson Promissory Note In November 2019, Legacy Sonder granted Mr. Davidson, its CEO, the ability to purchase 5,613,290 shares of common stock for an aggregate exercise price of $24.6 million, all of which Mr. Davidson exercised in December 2019 with a full recourse promissory note payable to Sonder. As of December 31, 2021, the aggregate borrowings outstanding under the note, including interest of $1.1 million, was $25.2 million. The aggregate outstanding principal amount and interest under the Promissory Note was repaid in full by Mr. Davidson prior to the consummation of the Business Combination. See Note 12. Stockholders’ Equity (Deficit) for details. 2021 Convertible Promissory Notes In March 2021, Sonder issued the Convertible Notes in an aggregate principal amount of $165 million to certain investors in exchange for Sonder’s agreement to issue the investors shares of its capital stock upon the occurrence of certain events described in the Note Purchase Agreement dated March 12, 2021. Sonder’s investors and their affiliates held $43.3 million of the Convertible Notes. The Convertible Notes automatically converted into shares of Sonder common stock immediately prior to the consummation of the Business Combination. See Note 5. Debt for details of the transaction. |
Business Combination
Business Combination | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | Business Combination On January 18, 2022, Sonder consummated the previously announced Business Combination pursuant to the Agreement and Plan of Merger, dated as of April 29, 2021 (as amended by the Amendment No. 1 to the Agreement and Plan of Merger, dated as of October 27, 2021 (Amendment No. 1)), by and among GMII, Sunshine Merger Sub I, Inc., a Delaware corporation and a direct, wholly-owned subsidiary of Second Merger Sub, Sunshine Merger Sub II, LLC, a Delaware limited liability company and a direct, wholly-owned subsidiary of GMII, and Legacy Sonder. Pursuant to the Merger Agreement, (i) First Merger Sub merged with and into Legacy Sonder, with Legacy Sonder continuing as the surviving corporation (First Merger), and (ii) immediately following the First Merger and as part of the same overall transaction as the First Merger, Legacy Sonder merged with and into Second Merger Sub, with Second Merger Sub continuing as the surviving entity (the Second Merger and, together with the First Merger, the Mergers) and, together with the other transactions contemplated by the Merger Agreement. As a result of the First Merger, Second Merger Sub owned 100% of the outstanding capital stock of Legacy Sonder as the surviving corporation of the First Merger and each share of capital stock of Legacy Sonder was cancelled and converted into the right to receive the merger consideration in accordance with the terms of the Merger Agreement. As a result of the Second Merger, GMII (which was renamed Sonder Holdings Inc.) following the Business Combination owns 100% of the outstanding interests in the surviving entity of the Second Merger (Surviving Entity). The aggregate merger consideration (excluding any Earn Out shares) paid to securityholders of Legacy Sonder as of immediately prior to the effective time of the First Merger (the Legacy Sonder Securityholders) in connection with the Business Combination was approximately 190,160,300 shares of GMII’s common stock (the Common Stock, which term (a) with reference to GMII prior to the Business Combination and the effectiveness of the Amended and Restated Certificate of Incorporation (Amended and Restated Certificate of Incorporation), means the Class A Stock and the Class F Stock, and (b) with reference to Sonder from and after the effectiveness of the Amended and Restated Certificate of Incorporation and the conversion of the Class F Stock in accordance with the Amended and Restated Certificate of Incorporation, means the common stock, par value $0.0001 per share, of Sonder). Certain of these shares of Common Stock were reserved for issuance upon (a) the exercise of Rollover Options (as defined below) and (b) the exchange of the Post-Combination Exchangeable Common Shares (as defined below) corresponding to shares of Post-Combination Company Special Voting Common Stock (as defined below) issued in the Business Combination. Pursuant to the Merger Agreement: • holders of existing shares of Common Stock of Legacy Sonder, par value $0.000001 per share (Legacy Sonder Common Stock) (following the conversion of each issued and outstanding share of Legacy Sonder’s preferred stock and the convertible promissory notes issued by Legacy Sonder to certain purchasers pursuant to the Note Purchase Agreement, dated March 12, 2021, as amended, into shares of Legacy Sonder Common Stock prior to the effective time of the First Merger), received approximately 140,544,052 shares of the Company’s Common Stock, pursuant to the exchange ratio of 1.4686 shares for each share of Legacy Sonder Common Stock held; • holders of existing shares of Special Voting Series AA Common Stock, par value $0.000001 per share (Legacy Sonder Special Voting Common Stock), received approximately 32,296,539 shares of the newly created Post-Combination Special Voting Common Stock, par value $0.0001 per share (Post-Combination Special Voting Common Stock), pursuant to the exchange ratio of 1.4686 shares for each share of Legacy Sonder Special Voting Common Stock held; • holders of Series AA Common Exchangeable Preferred Shares (Legacy Sonder Canada Exchangeable Common Shares) of Sonder Canada Inc., a corporation existing under the laws of the province of Québec (Legacy Sonder Canada) received a new series of the same class of virtually identical Legacy Sonder Canada Exchangeable Common Shares (Post-Combination Exchangeable Common Shares) whose terms provide (a) for a deferral of any mandatory exchange caused by the Business Combination for a period of at least 12 months from the closing date of the Business Combination, and (b) that such Post-Combination Exchangeable Common Shares shall be exchangeable for Common Stock upon the completion of the Business Combination; and • holders of options to purchase Legacy Sonder Common Stock (Legacy Sonder Stock Options) received options to acquire approximately 30,535,549 shares of Company’s Common Stock (Rollover Options), pursuant to the Option Exchange Ratio of 1.5444 shares for each share of Legacy Sonder Stock Options held. As a result of the above, the share figures as of December 31, 2021 in the condensed consolidated statement of mezzanine equity and stockholders’ equity (deficit) for the three months ended March 31, 2022 have been adjusted for the application of the exchange ratio of 1.4686 per share. In addition, all options were adjusted for the Option Exchange Ratio of 1.5444 shares for each share of Legacy Sonder Stock Options held. Following the closing of the Business Combination, the Company owned all of the issued and outstanding equity interests in Legacy Sonder and its subsidiaries, and the Legacy Sonder Securityholders held approximately 79.7% of the Company. Following the closing of the Business Combination, the Company’s Common Stock and the Company’s Public Warrants began trading on the Nasdaq Global Select Market under the symbols “SOND” and “SONDW,” respectively. In addition to the consideration paid at the closing of the Business Combination, holders of Legacy Sonder Common Stock, Legacy Sonder Canada Exchangeable Common Shares and warrants of Legacy Sonder immediately prior to the effective time of the Business Combination may receive their pro rata share of up to an aggregate of 14,500,000 additional shares of Common Stock as consideration as a result of the Common Stock achieving certain benchmark share prices as contemplated by the Merger Agreement. The Business Combination was accounted for as a reverse recapitalization. Under this method of accounting, GMII was treated as the acquired company for financial statement reporting purposes. The most significant change in Sonder’s reported financial position and results is an increase in cash (as compared to Sonder’s consolidated balance sheet at December 31, 2021) of approximately $401.9 million, net of the pay down of $24.7 million outstanding principal of the 2020 Promissory Notes, as well as non-recurring transaction costs of $58.6 million. The $401.9 million includes $159.2 million of delayed draw notes, net of issuance costs The Business Combination was viewed as an acquisition of control of Legacy Sonder’s stock for tax purposes. As a result, the foreign capital loss carryforwards available to Legacy Sonder as of December 31, 2021 expired, and Sonder is no longer eligible to utilize these foreign capital loss carryforwards in future periods. Option awards granted to the CEO, including the CEO Performance Awards that were modified in the three months ended March 31, 2021, that are eligible to vest in connection with the Business Combination that otherwise achieves the applicable market conditions were estimated using a Monte Carlo simulation. The fair value of the option awards using the Monte Carlo simulation was $5.5 million, which is to be recognized over the requisite service periods. Closing of PIPE Investments Pursuant to subscription agreements entered into in connection with the Merger Agreement (Existing Subscription Agreements), certain investors agreed to subscribe for an aggregate of 20,000,000 newly issued shares of Class A Stock (which became Common Stock upon the effectiveness of the Amended and Restated Certificate of Incorporation) for a purchase price of $10.00 per share, or an aggregate of approximately $200 million (Existing PIPE Investment). In addition, pursuant to subscription agreements entered into in connection with Amendment No.1, certain investors agreed to subscribe for an additional 11,507,074 newly issued shares of Class A Stock (which became Common Stock upon the effectiveness of the Amended and Restated Certificate of Incorporation) for a purchase price of $8.89 per share, or an aggregate of approximately $102.3 million (New PIPE Investment). In addition, concurrently with the execution of Amendment No. 1, GMII entered into a subscription agreement with the Sponsor whereby the Sponsor separately agreed to purchase an additional 709,711 shares of Class A Stock (which became Common Stock upon the effectiveness of the Amended and Restated Certificate of Incorporation) in a private placement for $10.00, or an aggregate of approximately $7.1 million (Additional Sponsor PIPE Commitment and, together with the Existing PIPE Investment and the New PIPE Investment, the PIPE Investment). At the closing, the Company consummated the PIPE Investment. The following table reconciles the elements of the Business Combination to the condensed consolidated statement of cash flows and the consolidated statement of stockholders’ equity (deficit) for the three months ended March 31, 2022 (in thousands): Cash - PIPE Financing $ 309,398 Cash - GMII trust and cash, net of redemptions 16,530 Less: transaction costs and advisory fees (58,555) Net proceeds from Business Combination and PIPE $ 267,373 Proceeds from Delayed Draw Notes, net of issuance costs of $5,775 159,225 Repayment of debt (24,680) Net proceeds from Business Combination, PIPE, and Delayed Draw Notes $ 401,918 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP, U.S. GAAP, or generally accepted accounting principles). The condensed consolidated financial statements include the accounts of Sonder Holdings Inc., its wholly owned subsidiaries, and one variable interest entity (VIE) for which it is the primary beneficiary in accordance with consolidation accounting guidance. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of Sonder, the accompanying unaudited condensed consolidated financial statements contain all adjustments, including normal recurring adjustments, necessary to present fairly its financial position as of March 31, 2022, its results of operations and comprehensive income (loss), mezzanine equity and stockholders’ equity (deficit), and cash flows for the three months ended March 31, 2022 and 2021. Sonder’s condensed consolidated results of operations and comprehensi ve income (loss), mezzanine equity and stockholders’ equity (deficit ), and cash flows for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the full year. |
Principles of Consolidation | Sonder consolidates its VIE in which it holds a variable interest and is the primary beneficiary. Sonder is the primary beneficiary when it (1) has the power to direct the activities that most significantly impact the economic performance of this VIE and (2) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to this VIE. As a result, Sonder consolidates the assets and liabilities of this VIE. If Sonder is not deemed to be the primary beneficiary in a VIE, it accounts for the investment or other variable interest in a VIE in accordance with applicable U.S. GAAP. As of March 31, 2022 and December 31, 2021, Sonder’s consolidated VIE was not material to the condensed consolidated financial statements. |
Use of Estimates | The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of income and expense during the reporting periods. Such management estimates include revenue recognition, bad debt allowance, the fair value of share-based awards, valuation of common stock, estimated useful life of software development costs, valuation of intellectual property and intangible assets, contingent liabilities, and valuation allowance for deferred tax assets, among others. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from those estimates. |
Deferred Transaction Costs | Deferred transaction costs consist of expenses incurred in connection with Sonder becoming publicly traded, including legal, accounting, printing, and other related costs. Since Sonder became publicly traded, these deferred costs have been reclassified to stockholders’ equity (deficit) and recorded against the proceeds from the transaction. |
Recent Accounting Pronouncements | In August 2020, the Financial Accounting Standards Board (“ FASB ”) issued Accounting Standards Update (“ ASU ”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments. This guidance also eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. For public companies, the guidance is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted. Sonder has early adopted ASU 2020-06 beginning January 1, 2021, and the adoption did not have a material impact on its condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which has subsequently been amended by ASUs 2018-01, 2018-10, 2018-11, 2018-20, 2019-01, 2019-10 and 2020-05. The guidance requires the recognition of right of use (ROU) assets and lease liabilities for substantially all leases under U.S. GAAP. The guidance retains a distinction between finance leases and operating leases, and the classification criteria for distinguishing between finance leases and operating leases are substantially similar to that under previous U.S. GAAP. The expense recognition and cash flow treatment arising from either a finance lease or operating lease by a lessee have not changed significantly from previous U.S. GAAP. For operating leases, a lessee is required to do the following: (i) recognize a right-of-use (ROU) asset and a lease liability, initially measured at the present value of the lease payments, on the condensed consolidated balance sheets; (ii) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis; and (iii) classify all cash payments within operating activities in the statement of cash flows. ASU 2016-02 is effective for public entities and employee benefit plans that file or furnish financial statements with or to the SEC for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years and is effective for all other entities for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, except for employee benefit plans that file or furnish financial statements with or to the SEC or not-for-profit entities. Early adoption is allowed. In November 2019, the FASB issued amended guidance which defers the effective date for emerging growth companies (EGCs) for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. We implemented ASC 842 as of January 1, 2022. The most significant effects of Topic 842 were the recognition of $1,133.8 million in operating lease right-of-use assets, $143.0 million of current operating lease liabilities, $1,070.9 million of non-current operating lease liabilities, and a $66.1 million reduction to deferred rent, which was recorded as a reduction the ROU asset measured on adoption date. Sonder applied Topic 842 to all leases as of January 1, 2022, with comparative periods continuing to be reported under Topic 840. As part of the adoption of Topic 842, Sonder carried forward the assessment from Topic 840 of whether our contracts contain or are leases, the classification of leases, and remaining lease terms. See Note 6. Leases for further details. In December 2019, the FASB issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The objective of this element of the initiative is to simplify the accounting for income taxes by removing certain exceptions to general principles in ASC 740 and by clarifying and amending guidance that already exists within US generally accepted accounting principles (US GAAP). ASU 2019-12 was effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, and for all other entities for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Sonder has adopted this standard effective January 1, 2022, but there was no impact on Sonder’s condensed consolidated financial statements. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables — Nonrefundable Fees and Other Costs , which clarifies when an entity should assess whether a callable debt security is within the scope of accounting guidance, which impacts the amortization period for nonrefundable fees and other costs. For public entities, the guidance is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early application is not permitted. For all other entities, the guidance is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early application is permitted for all other entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Upon adoption, the amendments are to be applied on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. Sonder adopted the standard as of January 1, 2022, but it did not have any impact on its condensed consolidated financial statements. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which has subsequently been amended by ASUs 2018-19, 2019-04, 2019-05, 2019-10 and 2019-11. The guidance changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance replaces the current ‘incurred loss’ model with an ‘expected loss’ approach. This generally will result in the earlier recognition of allowances for losses and requires increased disclosures. ASU 2016-13 is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, and is effective for all other entities for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021, with early adoption permitted. In November 2019, the FASB issued amended guidance which defers the effective date for emerging growth companies (EGCs) for fiscal years beginning after December 15, 2022, and interim periods therein. Sonder is currently evaluating the impact ASU 2016-13 will have on its condensed consolidated financial position, results of operations, and cash flows. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) , which was subsequently amended by ASU 2021-04. The guidance provides optional expedients and exceptions to contract modifications and hedging relationships that reference the London Interbank Offered Rate or another reference rate expected to be discontinued. The standard is effective upon issuance through December 31, 2022 and may be applied at the beginning of the interim period that includes March 12, 2020 or any date thereafter. Sonder does not have any hedging relationships and currently does not have material contracts impacted by reference rate reform; however, Sonder will continue to assess contracts through December 31, 2022. In August 2020 the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , that simplifies the accounting for certain convertible instruments and contracts potentially settled in an entity’s own shares. The ASU changes the accounting for certain convertible instruments by eliminating two of the separation accounting models which will likely result in more convertible instruments being accounted for as a single unit. ASU 2020-06 is generally effective for public business entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Sonder early adopted ASU 2020-06 beginning January 1, 2021, and the adoption did not have a significant impact on its consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenue | The following table sets forth Sonder’s total revenues for the periods shown disaggregated between direct and indirect channels (in thousands): Three Months Ended March 31, 2022 2021 Direct revenue $ 31,934 $ 20,094 Indirect revenue 48,532 11,464 Total revenue $ 80,466 $ 31,558 |
Fair value measurement and fi_2
Fair value measurement and financial instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Liabilities Measured on Recurring Basis | The following table summarizes Sonder’s Level 2 and Level 3 financial liabilities measured at fair value on a recurring basis (in thousands): March 31, 2022 Level 2 Level 3 Total Financial liabilities: Other non-current liabilities: Earn Out liability $ 24,940 $ — $ 24,940 Public Warrants — 7,290 7,290 Private Placement Warrants — 4,455 4,455 Total financial liabilities measured and recorded at fair value $ 24,940 $ 11,745 $ 36,685 Sonder did not have any asset or liability measured at Level 1 or Level 2 as of December 31, 2021 on recurring or non-recurring basis. The following table summarizes Sonder’s Level 3 financial liabilities measured at fair value on a recurring basis (in thousands): December 31, 2021 Level 3 Financial liabilities: Other non-current liabilities: Preferred stock warrant liabilities $ 3,288 Share-settled redemption feature 30,322 Total financial liabilities measured and recorded at fair value $ 33,610 |
Schedule of Financial Liabilities Measured at Fair Value | The following table presents changes in Sonder’s Level 3 liabilities measured at fair value for the three months ended March 31, 2022 (in thousands): March 31, 2022 Level 3 Beginning balance $ 33,610 Public Warrants liability 23,604 Private Placement Warrants liability 14,465 Decrease in fair value of share-settled redemption feature upon conversion of Convertible Notes (30,322) Decrease in fair value of Public Warrants liability (16,314) Decrease in fair value of Private Placement Warrants liability (10,010) Conversion of preferred stock warrant liabilities to equity (3,288) Total financial liabilities measured and recorded at fair value $ 11,745 The following table presents changes in Sonder’s Level 3 liabilities measured at fair value for the year ended December 31, 2021 (in thousands): December 31, 2021 Level 3 Beginning balance $ 1,140 Recognition of share-settled redemption feature 45,156 Decrease in fair value of share-settled redemption feature (14,834) Increase in fair value of preferred stock warrant liabilities 2,148 Total financial liabilities measured and recorded at fair value $ 33,610 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt, Net | Long term debt, net consisted of the following (in thousands): March 31, 2022 December 31 Principal balance $ 168,112 $ 24,477 Less: Delayed Draw Warrants liability (5,598) — Less: unamortized deferred issuance costs (5,792) (625) Long term debt, net $ 156,722 $ 23,852 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Cost and Supplemental Information | Components of operating lease expense were as follows (in thousands): Three Months Ended March 31, 2022 Operating lease cost $ 62,947 Short-term lease cost 2 Variable lease cost 643 Total operating lease cost $ 63,592 Supplemental information related to operating leases was as follows (in thousands): Three Months Ended March 31, 2022 Cash payments for operating leases $ 49,765 New operating lease ROU assets obtained in exchange for operating lease liabilities 114,900 Weighted average remaining lease term 7.59 Weighted average discount rate 9.3 % |
Schedule of Future Minimum Lease Payments after Adoption | As of March 31, 2022, remaining maturities of operating lease obligations are as follows (in thousands): As of March 31, 2022 Amount remaining nine months of 2022 $ 185,445 2023 285,977 2024 246,659 2025 229,232 2026 199,287 2027 152,416 Thereafter 448,309 Gross lease payments 1,747,325 Less imputed interest (506,415) Total operating lease obligations, net $ 1,240,910 |
Schedule of Future Minimum Lease Payments before Adoption | As of December 31, 2021, prior to the adoption of Topic 842, future minimum payments lease payments under non-cancelable operating leases were as follows (in millions): As of December 31, 2021 Amount 2022 $ 279,093 2023 366,299 2024 418,156 2025 433,541 2026 403,582 Thereafter 1,641,237 Total minimum future lease payments $ 3,541,908 |
Preferred and Common Stock Wa_2
Preferred and Common Stock Warrants (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Warrants and Rights Note Disclosure [Abstract] | |
Schedule of Preferred Stock Warrants Outstanding | The number outstanding and exercise price are prior to the application of the merger exchange ratio in the Business Combination, which closed on January 18, 2022: Type of Warrant Number Outstanding Issuance Date Exercise Price Expiration Date Series A 59,440 10/20/2016 $ 1.36 10/20/2026 Series B 57,696 1/30/2018 $ 2.40 1/30/2028 Series C 218,417 12/28/2018 $ 5.04 12/28/2025 Series D 71,456 2/21/2020 $ 10.50 2/21/2027 |
Exchangeable shares and redee_2
Exchangeable shares and redeemable convertible preferred stock (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of Post-Combination Exchangeable Shares | At March 31, 2022 , Sonder had the following authorized and outstanding Post-Combination Exchangeable Common Shares (in thousands except per share amounts): March 31, 2022 Shares Shares Issuance Net Aggregate Post-Combination Exchangeable Common Shares 40,000 32,297 $ 1.54 $ 49,733 $ 49,733 Total exchangeable shares 40,000 32,297 $ 49,733 $ 49,733 |
Schedule of Exchangeable and Redeemable Convertible Preferred Stock | The figures below are prior to the application of the merger exchange ratio in the Business Combination, which closed on January 18, 2022 (in thousands except per share amounts): December 31, 2021 Shares Shares Issued and Outstanding Issuance Price Per Share Net Carrying Value Aggregate Liquidation Preference Series AA Common 22,518 9,421 $ — $ — $ — Series Seed 1 2,589 2,589 0.53 1,359 1,372 Series Seed 2 1,209 1,209 0.50 606 605 Series Seed 3 704 704 1.09 787 768 Series A 183 183 1.36 250 250 Series B 2,336 2,336 2.40 5,610 5,605 Series C 3,175 3,175 5.04 15,991 16,003 Series D 2,058 1,953 10.50 20,600 20,600 Series E 421 421 10.77 4,530 4,530 Total exchangeable shares 35,193 21,991 — $ 49,733 $ 49,733 The figures below are prior to the application of the merger exchange ratio in the Business Combination, which closed on January 18, 2022 ( in thousands except per share amounts) : December 31, 2021 Shares Shares Issuance Net Aggregate Series Seed 1 3,703 785 $ 0.53 $ 269 $ 416 Series Seed 1-A 3,703 328 0.53 $ 174 $ 174 Series Seed 2 1,720 471 0.50 $ 222 $ 235 Series Seed 2-A 1,720 39 0.50 $ 20 $ 20 Series Seed 3 704 — 1.09 $ — $ — Series Seed 3-A 704 — 1.09 $ — $ — Series A 7,023 6,780 1.36 $ 9,241 $ 9,221 Series A-1 7,023 — 1.36 $ — $ — Series B 15,611 13,218 2.40 $ 27,105 $ 31,723 Series B-1 15,611 — 2.40 $ — $ — Series C 19,071 12,144 5.04 $ 56,496 $ 61,204 Series C-1 19,071 3,514 5.04 $ 17,708 $ 17,708 Series D 21,603 3,482 10.50 $ 35,808 $ 36,560 Series D-1 21,603 16,049 10.50 $ 168,518 $ 168,518 Series E 34,933 18,956 10.77 $ 203,189 $ 204,159 Total redeemable convertible preferred stock 173,803 75,767 — $ 518,750 $ 529,938 |
Common Stock (Tables)
Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Shares of Common Stock Reserved for Future Issuance | As of March 31, 2022, Sonder has reserved the following shares of common stock for future issuance: March 31, 2022 Conversion of exchangeable shares 40,000,000 Outstanding stock options 30,802,205 Outstanding restricted stock units (RSUs) 72,254 Outstanding warrants liability 14,499,966 Shares issuable pursuant to Earn Out liability 14,500,000 Outstanding Delayed Draw Note warrants liability 2,475,000 Shares available for grant under the ESPP 6,564,031 Shares available for grant under the 2021 Equity Incentive Plan 28,171,591 Total common stock reserved for future issuance 137,085,047 As of December 31, 2021, Sonder reserved the following shares of common stock for future issuance: December 31, 2021 Conversion of preferred stock and exchangeable shares (1) 208,995,747 Outstanding stock options 19,865,244 Options available for grant under the 2019 Equity Incentive Plan 1,859,784 Total common stock reserved for future issuance 230,720,775 ____________ (1) Includes the warrants reclassified to equity as of December 31, 2021 and those issued in connection with the 2018 Loan and Security Agreement and related amendment as of December 31, 2021. |
Stockholders_ Equity (Deficit)
Stockholders’ Equity (Deficit) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation | Total stock-based compensation expense is as follows (in thousands): Three Months Ended March 31, 2022 2021 Operations and support $ 930 $ 406 General and administrative 4,929 13,491 Research and development 742 255 Sales and marketing 79 1 Total stock-based compensation expense $ 6,680 $ 14,153 |
Schedule of Key Assumptions used to Determine Fair Value of Stock Options | The following table summarizes the key assumptions used to determine the fair value of Sonder’s stock options granted to employees, non-employees, officers, and directors: Three Months Ended March 31, 2022 2021 Expected term (in years) 4.09 3.99 Expected volatility 55 % 64 % Dividend yield — % — % Risk-free interest Rate 1.79 % 0.41 % Weighted-average grant-date fair value per share $2.13 $4.54 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Loss per Share | The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except number of shares and per share amounts): Three Months Ended March 31, 2022 2021 Basic net income (loss) per share: Numerator Net income (loss) $ 22,392 $ (78,541) Less: Net income (loss) attributable to convertible preferred stock and exchangeable preferred stockholders (2,872) — Net income (loss) attributable to common stockholders $ 19,520 $ (78,541) Denominator Basic weighted-average common shares used in computing basic net income (loss) per share 176,326,658 10,656,458 Basic net income (loss) per share attributable to common stockholders $ 0.11 $ (7.37) Three Months Ended March 31, 2022 2021 Diluted net income (loss) per share: Numerator Net income (loss) $ 22,392 $ (78,541) Add: Convertible notes interest expense 2,727 — Less: Change in fair value of share-settled redemption feature and gain on conversion of Convertible Notes (29,512) — Less: Change in fair value of SPAC Warrants (26,324) — Net income (loss) attributable to common stockholders $ (30,717) $ (78,541) Denominator Number of shares used in basic net income (loss) per share computation 176,326,658 10,656,458 Weighted-average effect of potentially dilutive securities: Converted Notes 3,803,421 — Private Placement and Public Warrants (8,303,021) — Diluted weighted-average common stock outstanding 171,827,058 10,656,458 Diluted net income (loss) per share attributable to common stockholders $ (0.18) $ (7.37) |
Schedule of Antidilutive Securities | The following potential common shares outstanding were excluded from the computation of diluted net income (loss) per share because including them would have been anti-dilutive (in thousands): As of March 31, 2022 2021 Options to purchase common stock 30,802 26,588 Common stock subject to repurchase or forfeiture 2,303 2,823 Redeemable convertible preferred stock(1) — 111,258 Exchangeable shares 32,297 32,334 Total common stock equivalents 65,402 173,003 ____________ (1) Includes the warrants reclassified to equity as of March 31, 2022 and those issued in connection with the 2018 Loan and Security Agreement and related amendment as of December 31, 2021 . |
Business Combination (Tables)
Business Combination (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Combinations, PIPE and Delayed Draw Notes | The following table reconciles the elements of the Business Combination to the condensed consolidated statement of cash flows and the consolidated statement of stockholders’ equity (deficit) for the three months ended March 31, 2022 (in thousands): Cash - PIPE Financing $ 309,398 Cash - GMII trust and cash, net of redemptions 16,530 Less: transaction costs and advisory fees (58,555) Net proceeds from Business Combination and PIPE $ 267,373 Proceeds from Delayed Draw Notes, net of issuance costs of $5,775 159,225 Repayment of debt (24,680) Net proceeds from Business Combination, PIPE, and Delayed Draw Notes $ 401,918 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 1,133,809 | ||
Total operating lease obligations, net | 1,240,910 | ||
Current operating lease liabilities | 143,014 | ||
Non-current operating lease liabilities | 1,070,896 | $ 0 | |
Decrease in deferred rent including tenant improvement allowances | 0 | (66,132) | |
Decrease in other liabilities | $ (36,603) | (3,906) | |
Cumulative Effect Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 1,133,800 | ||
Total operating lease obligations, net | 1,200,000 | ||
Current operating lease liabilities | 143,000 | ||
Non-current operating lease liabilities | 1,070,900 | ||
Decrease in deferred rent including tenant improvement allowances | $ 66,100 | ||
Decrease in other liabilities | $ 31,800 |
Revenue - Disaggregated Revenue
Revenue - Disaggregated Revenue by Channel (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 80,466 | $ 31,558 |
Direct revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 31,934 | 20,094 |
Indirect revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 48,532 | $ 11,464 |
Fair value measurement and fi_3
Fair value measurement and financial instruments - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 18, 2022 | Mar. 31, 2022 | Jan. 31, 2022 |
Common Stock | |||
Class of Warrant or Right [Line Items] | |||
Aggregate number of contingently issuable shares (in shares) | 14,500,000 | ||
Public Warrants | |||
Class of Warrant or Right [Line Items] | |||
Exercise price (in dollars per share) | $ 11.50 | $ 0.81 | $ 11.50 |
Public Warrants | Gores Metropoulos Sponsor II, LLC | |||
Class of Warrant or Right [Line Items] | |||
Number outstanding (in shares) | 9,000,000 | ||
Private Placement Warrant | |||
Class of Warrant or Right [Line Items] | |||
Number outstanding (in shares) | 5,500,000 | ||
Exercise price (in dollars per share) | $ 11.50 | $ 0.81 | |
Delayed Draw Warrants | |||
Class of Warrant or Right [Line Items] | |||
Exercise price (in dollars per share) | $ 12.50 | ||
Fair value of warrants | $ 5.6 |
Fair value measurement and fi_4
Fair value measurement and financial instruments - Schedule of Financial Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Other non-current liabilities: | ||
Total financial liabilities measured and recorded at fair value | $ 36,685 | |
Recapitalization Earn Out Shares | ||
Other non-current liabilities: | ||
Other non-current liabilities | 24,940 | |
Public Warrants | ||
Other non-current liabilities: | ||
Other non-current liabilities | 7,290 | |
Private Placement Warrant | ||
Other non-current liabilities: | ||
Other non-current liabilities | 4,455 | |
Level 2 | ||
Other non-current liabilities: | ||
Total financial liabilities measured and recorded at fair value | 24,940 | |
Level 2 | Recapitalization Earn Out Shares | ||
Other non-current liabilities: | ||
Other non-current liabilities | 24,940 | |
Level 3 | ||
Other non-current liabilities: | ||
Total financial liabilities measured and recorded at fair value | 11,745 | $ 33,610 |
Level 3 | Public Warrants | ||
Other non-current liabilities: | ||
Other non-current liabilities | 7,290 | |
Level 3 | Private Placement Warrant | ||
Other non-current liabilities: | ||
Other non-current liabilities | $ 4,455 | |
Level 3 | Preferred stock warrant liabilities | ||
Other non-current liabilities: | ||
Other non-current liabilities | 3,288 | |
Level 3 | Share-settled redemption feature | ||
Other non-current liabilities: | ||
Other non-current liabilities | $ 30,322 |
Fair value measurement and fi_5
Fair value measurement and financial instruments - Financial Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Public Warrants | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 23,700 | ||
Increase (decrease) in fair value | (16,400) | ||
Ending balance | 7,300 | $ 7,300 | |
Private Placement Warrant | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 14,500 | ||
Increase (decrease) in fair value | (10,000) | ||
Ending balance | 4,500 | 4,500 | |
Level 3 | Fair Value, Recurring | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 33,610 | $ 1,140 | |
Ending balance | $ 11,745 | 11,745 | 33,610 |
Level 3 | Fair Value, Recurring | Public Warrants | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Issuances | 23,604 | ||
Increase (decrease) in fair value | (16,314) | ||
Level 3 | Fair Value, Recurring | Private Placement Warrant | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Issuances | 14,465 | ||
Increase (decrease) in fair value | (10,010) | ||
Level 3 | Fair Value, Recurring | Share-Settled Redemption Feature | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Issuances | 45,156 | ||
Increase (decrease) in fair value | (30,322) | (14,834) | |
Level 3 | Fair Value, Recurring | Preferred Stock Warrant Liabilities | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Increase (decrease) in fair value | $ 2,148 | ||
Conversion of preferred stock warrant liabilities to equity | $ (3,288) |
Debt - Narrative (Details)
Debt - Narrative (Details) | Dec. 10, 2021$ / sharesshares | Jan. 31, 2022USD ($)shares | Mar. 31, 2021USD ($) | Feb. 29, 2020USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||||
Proceeds from delayed draw notes | $ 159,225,000 | $ 0 | ||||||||
Amount outstanding | 156,722,000 | $ 23,852,000 | ||||||||
Principal balance | 168,112,000 | 24,477,000 | ||||||||
Deferred loan issuance costs | 5,792,000 | 625,000 | ||||||||
Delayed draw warrant liabilities | 5,598,000 | 0 | ||||||||
Gain on conversion | 29,512,000 | 0 | ||||||||
Current portion of long-term debt | 0 | 13,116,000 | ||||||||
Repayment of debt | 24,680,000 | 2,018,000 | ||||||||
Early termination fees | 3,065,000 | 0 | ||||||||
Write-off of debt issuance costs | 362,000 | 0 | ||||||||
Restricted cash | $ 500,000 | 683,000 | 500,000 | 215,000 | ||||||
Delayed Draw Warrants | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number outstanding (in shares) | shares | 2,475,000 | 2,475,000 | ||||||||
Exercise price (in dollars per share) | $ / shares | $ 12.50 | |||||||||
Amount outstanding | 10,700,000 | |||||||||
Principal balance | 24,500,000 | |||||||||
Deferred loan issuance costs | 600,000 | |||||||||
Delayed draw warrant liabilities | 5,600,000 | |||||||||
Share-Settled Redemption Feature | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Gain on conversion | $ 29,500,000 | |||||||||
Issuance of common stock upon exercise of common stock warrants | 159,200,000 | |||||||||
Write-off of share-based settlement feature | 30,300,000 | |||||||||
Write-off of debt discount | 10,000,000 | |||||||||
Write down of accrued interest expense | 1,400,000 | |||||||||
Convertible Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | 165,000,000 | 165,000,000 | ||||||||
Proceeds from convertible notes, net of issuance costs | 162,400,000 | |||||||||
Issuance costs | $ 2,600,000 | $ 2,600,000 | ||||||||
Delayed Draw Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt term | 5 years | |||||||||
Interest rate payable annually | 9.00% | |||||||||
Proceeds from delayed draw notes | $ 165,000,000 | |||||||||
Amount outstanding | 156,700,000 | |||||||||
Principal balance | 168,100,000 | |||||||||
Principal amount excluding payment-in-kind interest | 165,000,000 | |||||||||
Payment-in-kind interest included in unpaid principal | 3,100,000 | |||||||||
Deferred loan issuance costs | 5,800,000 | |||||||||
Delayed Draw Notes | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable interest rate | 0.26161% | |||||||||
Variable interest rate floor | 1.00% | |||||||||
Convertible Promissory Note | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of shares issued (in shares) | shares | 19,017,105 | |||||||||
Value of common stock upon conversion | $ 159,200,000 | |||||||||
2018 Loan and Security Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount outstanding | 10,700,000 | |||||||||
Principal balance | 11,300,000 | |||||||||
Deferred loan issuance costs | 600,000 | |||||||||
Current portion of long-term debt | 13,100,000 | |||||||||
2018 Loan and Security Agreement | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 50,000,000 | |||||||||
Write down of accrued interest expense | 200,000 | |||||||||
Unused commitments | 25,000,000 | |||||||||
Interest expense | $ 4,900,000 | |||||||||
Repayment of debt | 24,500,000 | |||||||||
Debt extinguishment costs | 2,500,000 | |||||||||
Early termination fees | 600,000 | |||||||||
Write-off of debt issuance costs | $ 400,000 | |||||||||
2020 Credit Facility | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 50,000,000 | |||||||||
Letter of credit fee percentage | 1.50% | |||||||||
Non-use fee percentage | 0.25% | |||||||||
Additional liquidity covenant amount | $ 25,000,000 | |||||||||
Cash collateral percentage | 105.00% | |||||||||
Potential increase in interest rate | 2.00% | |||||||||
2020 Credit Facility | Revolving Credit Facility | Eurodollar | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable interest rate | 2.00% | |||||||||
2020 Credit Facility | Revolving Credit Facility | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable interest rate | 2.00% | |||||||||
2020 Credit Facility | Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount outstanding under line of credit | $ 27,600,000 | |||||||||
2020 Québec Credit Facility | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt term | 10 years | |||||||||
Interest rate payable annually | 6.00% | 6.00% | ||||||||
Maximum borrowing capacity | $ 25,000,000 | |||||||||
Conditional-Refund Financial Contribution Facility | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt term | 10 years | |||||||||
Interest rate payable annually | 6.00% | 6.00% | ||||||||
Maximum borrowing capacity | $ 5,000,000 | |||||||||
Potential reduction in principal and accrued interest | $ 5,000,000 | |||||||||
Facility fee | $ 300,000 |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Principal balance | $ 168,112 | $ 24,477 |
Less: Delayed Draw Warrants liability | (5,598) | 0 |
Less: unamortized deferred issuance costs | (5,792) | (625) |
Long term debt, net | $ 156,722 | $ 23,852 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Jan. 01, 2022 | Dec. 31, 2021 | |
Operating Leased Assets [Line Items] | ||||
Operating lease right-of-use assets | $ 1,133,809 | |||
Operating lease liability | 1,240,910 | |||
Decrease in other liabilities | (36,603) | $ (3,906) | ||
Future lease payments for leases not yet commenced | $ 1,750,000 | |||
Lease term for leases not yet commenced | 16 years | |||
Rent expense for operating leases | $ 65,100 | $ 37,900 | ||
Cumulative Effect Adjustment | ||||
Operating Leased Assets [Line Items] | ||||
Operating lease right-of-use assets | $ 1,133,800 | |||
Operating lease liability | $ 1,200,000 | |||
Reclassification of prepaid expenses | 200 | |||
Decrease in other liabilities | $ 31,800 | |||
Cost of Revenue | ||||
Operating Leased Assets [Line Items] | ||||
Rent expense for operating leases | 63,600 | 35,900 | ||
Operations and Support | ||||
Operating Leased Assets [Line Items] | ||||
Rent expense for operating leases | 700 | 900 | ||
General and Administrative | ||||
Operating Leased Assets [Line Items] | ||||
Rent expense for operating leases | $ 800 | $ 1,100 |
Leases - Lease Cost and Supplem
Leases - Lease Cost and Supplemental Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Lease, Cost [Abstract] | |
Operating lease cost | $ 62,947 |
Short-term lease cost | 2 |
Variable lease cost | 643 |
Total operating lease cost | 63,592 |
Cash payments for operating leases | 49,765 |
New operating lease ROU assets obtained in exchange for operating lease liabilities | $ 114,900 |
Weighted average remaining lease term | 7 years 7 months 2 days |
Weighted average discount rate | 9.30% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Non-Cancellable Leases After Adoption (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Operating Leases | |
remaining nine months of 2022 | $ 185,445 |
2023 | 285,977 |
2024 | 246,659 |
2025 | 229,232 |
2026 | 199,287 |
2027 | 152,416 |
Thereafter | 448,309 |
Gross lease payments | 1,747,325 |
Less imputed interest | (506,415) |
Total operating lease obligations, net | $ 1,240,910 |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Lease Payments before Adoption (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Operating Leases | |
2022 | $ 279,093 |
2023 | 366,299 |
2024 | 418,156 |
2025 | 433,541 |
2026 | 403,582 |
Thereafter | 1,641,237 |
Total minimum future lease payments | $ 3,541,908 |
Preferred and Common Stock Wa_3
Preferred and Common Stock Warrants - Schedule of Preferred Stock Warrants Outstanding (Details) | Mar. 31, 2022$ / sharesshares |
Series A | |
Class of Warrant or Right [Line Items] | |
Number outstanding (in shares) | shares | 59,440 |
Exercise price (in dollars per share) | $ / shares | $ 1.36 |
Series B | |
Class of Warrant or Right [Line Items] | |
Number outstanding (in shares) | shares | 57,696 |
Exercise price (in dollars per share) | $ / shares | $ 2.40 |
Series C | |
Class of Warrant or Right [Line Items] | |
Number outstanding (in shares) | shares | 218,417 |
Exercise price (in dollars per share) | $ / shares | $ 5.04 |
Series D | |
Class of Warrant or Right [Line Items] | |
Number outstanding (in shares) | shares | 71,456 |
Exercise price (in dollars per share) | $ / shares | $ 10.50 |
Preferred and Common Stock Wa_4
Preferred and Common Stock Warrants - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 18, 2022 | Jan. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 10, 2021 |
Class of Warrant or Right [Line Items] | ||||||
Proceeds from delayed draw notes | $ 159,225 | $ 0 | ||||
Public Warrants | ||||||
Class of Warrant or Right [Line Items] | ||||||
Fair value of liability | $ 23,700 | $ 7,300 | 7,300 | |||
Increase (decrease) in fair value | (16,400) | |||||
Private Placement Warrant | ||||||
Class of Warrant or Right [Line Items] | ||||||
Fair value of liability | $ 14,500 | 4,500 | $ 4,500 | |||
Increase (decrease) in fair value | $ (10,000) | |||||
Delayed Draw Warrants | ||||||
Class of Warrant or Right [Line Items] | ||||||
Proceeds from delayed draw notes | $ 165,000 | |||||
Number outstanding (in shares) | 2,475,000 | |||||
Exercise price (in dollars per share) | $ 12.50 | |||||
Warrants term | 5 years | |||||
Public Warrants | ||||||
Class of Warrant or Right [Line Items] | ||||||
Exercise price (in dollars per share) | $ 11.50 | $ 11.50 | $ 0.81 | $ 0.81 | ||
Warrants term | 5 years | |||||
Number of units required to be purchased (in units) | 5 | |||||
Public Warrants | Gores Metropoulos Sponsor II, LLC | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number outstanding (in shares) | 9,000,000 | |||||
Private Placement Warrant | ||||||
Class of Warrant or Right [Line Items] | ||||||
Exercise price (in dollars per share) | $ 11.50 | $ 0.81 | $ 0.81 | |||
Number outstanding (in shares) | 5,500,000 | |||||
Additional Paid-in Capital | ||||||
Class of Warrant or Right [Line Items] | ||||||
Reclassification of warrants from liability to equity | $ 2,000 | |||||
Sonder Legacy Warrants | ||||||
Class of Warrant or Right [Line Items] | ||||||
Conversion of warrants | $ 1,243 | |||||
Sonder Legacy Warrants | Additional Paid-in Capital | ||||||
Class of Warrant or Right [Line Items] | ||||||
Issuance of common stock upon conversion | 1,200 | |||||
Conversion of warrants | 1,243 | |||||
Delayed Draw Warrants | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number outstanding (in shares) | 2,475,000 | 2,475,000 | ||||
Exercise price (in dollars per share) | $ 12.50 | |||||
Conversion of warrants | 5,598 | |||||
Delayed Draw Warrants | Additional Paid-in Capital | ||||||
Class of Warrant or Right [Line Items] | ||||||
Conversion of warrants | $ 5,600 | $ 5,598 | ||||
Post-Combination Exchangeable Common Shares | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of shares converted (in shares) | 150,092 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Jul. 30, 2020USD ($) | Mar. 31, 2022USD ($)suretyProvider | Dec. 31, 2021USD ($) |
Loss Contingencies [Line Items] | |||
Number of surety providers | suretyProvider | 7 | ||
Amount outstanding | $ 156,722 | $ 23,852 | |
Surety Bond | |||
Loss Contingencies [Line Items] | |||
Aggregate principal amount | 65,800 | ||
Amount outstanding | 32,900 | ||
Broad Street Investigation | |||
Loss Contingencies [Line Items] | |||
Damages sought by other parties | $ 3,900 | ||
Estimated accrual for potential losses | $ 3,200 | $ 5,300 |
Exchangeable shares and redee_3
Exchangeable shares and redeemable convertible preferred stock - Schedule of Post-Combination Exchangeable Common Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Jan. 18, 2022 | Jan. 17, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 40,000,000 | |||
Shares outstanding (in shares) | 32,297,000 | |||
Net carrying value | $ 49,733 | |||
Aggregate liquidation preference | $ 49,733 | |||
Post-Combination Exchangeable Common Shares | ||||
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 40,000,000 | |||
Shares outstanding (in shares) | 32,297,000 | |||
Issuance price per share (in dollars per share) | $ 1.54 | |||
Net carrying value | $ 49,733 | |||
Aggregate liquidation preference | 49,733 | |||
Post-Combination Exchangeable Common Shares | Common Stock | ||||
Class of Stock [Line Items] | ||||
Shares issued upon conversion (in shares) | 32,296,539 | |||
Issuance of common stock upon exercise of common stock warrants | $ 49,700 | |||
Shares outstanding (in shares) | 32,296,539 | |||
Exchangeable AA Common | ||||
Class of Stock [Line Items] | ||||
Shares authorized (in shares) | 22,518,000 | |||
Shares outstanding (in shares) | 9,421,000 | |||
Exchangeable Shares | Common Stock | ||||
Class of Stock [Line Items] | ||||
Shares outstanding (in shares) | 21,991,418 |
Exchangeable shares and redee_4
Exchangeable shares and redeemable convertible preferred stock - Schedule of Exchangeable and redeemable Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 18, 2022 | Mar. 31, 2022 | Jan. 17, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Temporary Equity [Line Items] | ||||||
Shares authorized (in shares) | 40,000,000 | |||||
Shares outstanding (in shares) | 32,297,000 | |||||
Net carrying value | $ 0 | $ 568,483 | ||||
Total exchangeable shares | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 35,193,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 21,991,000 | |||||
Net carrying value | $ 49,733 | |||||
Aggregate liquidation preference | $ 49,733 | |||||
Series Seed 1 | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 2,589,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 2,589,000 | |||||
Issuance price per share (in dollars per share) | $ 0.53 | |||||
Net carrying value | $ 1,359 | |||||
Aggregate liquidation preference | $ 1,372 | |||||
Series Seed 2 | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 1,209,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 1,209,000 | |||||
Issuance price per share (in dollars per share) | $ 0.50 | |||||
Net carrying value | $ 606 | |||||
Aggregate liquidation preference | $ 605 | |||||
Series Seed 3 | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 704,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 704,000 | |||||
Issuance price per share (in dollars per share) | $ 1.09 | |||||
Net carrying value | $ 787 | |||||
Aggregate liquidation preference | $ 768 | |||||
Series A | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 183,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 183,000 | |||||
Issuance price per share (in dollars per share) | $ 1.36 | |||||
Net carrying value | $ 250 | |||||
Aggregate liquidation preference | $ 250 | |||||
Series B | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 2,336,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 2,336,000 | |||||
Issuance price per share (in dollars per share) | $ 2.40 | |||||
Net carrying value | $ 5,610 | |||||
Aggregate liquidation preference | $ 5,605 | |||||
Series C | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 3,175,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 3,175,000 | |||||
Issuance price per share (in dollars per share) | $ 5.04 | |||||
Net carrying value | $ 15,991 | |||||
Aggregate liquidation preference | $ 16,003 | |||||
Series D | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 2,058,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 1,953,000 | |||||
Issuance price per share (in dollars per share) | $ 10.50 | |||||
Net carrying value | $ 20,600 | |||||
Aggregate liquidation preference | $ 20,600 | |||||
Series E | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 421,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 421,000 | |||||
Issuance price per share (in dollars per share) | $ 10.77 | |||||
Net carrying value | $ 4,530 | |||||
Aggregate liquidation preference | $ 4,530 | |||||
Total redeemable convertible preferred stock | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 173,803,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 0 | 75,757,555 | 75,767,000 | 111,257,435 | 111,121,045 | |
Net carrying value | $ 0 | $ 518,750 | $ 518,750 | $ 517,730 | ||
Aggregate liquidation preference | $ 529,938 | |||||
Series Seed 1 | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 3,703,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 785,000 | |||||
Issuance price per share (in dollars per share) | $ 0.53 | |||||
Net carrying value | $ 269 | |||||
Aggregate liquidation preference | $ 416 | |||||
Series Seed 1-A | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 3,703,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 328,000 | |||||
Issuance price per share (in dollars per share) | $ 0.53 | |||||
Net carrying value | $ 174 | |||||
Aggregate liquidation preference | $ 174 | |||||
Series Seed 2 | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 1,720,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 471,000 | |||||
Issuance price per share (in dollars per share) | $ 0.50 | |||||
Net carrying value | $ 222 | |||||
Aggregate liquidation preference | $ 235 | |||||
Series Seed 2-A | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 1,720,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 39,000 | |||||
Issuance price per share (in dollars per share) | $ 0.50 | |||||
Net carrying value | $ 20 | |||||
Aggregate liquidation preference | $ 20 | |||||
Series Seed 3 | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 704,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 0 | |||||
Issuance price per share (in dollars per share) | $ 1.09 | |||||
Net carrying value | $ 0 | |||||
Aggregate liquidation preference | $ 0 | |||||
Series Seed 3-A | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 704,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 0 | |||||
Issuance price per share (in dollars per share) | $ 1.09 | |||||
Net carrying value | $ 0 | |||||
Aggregate liquidation preference | $ 0 | |||||
Series A | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 7,023,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 6,780,000 | |||||
Issuance price per share (in dollars per share) | $ 1.36 | |||||
Net carrying value | $ 9,241 | |||||
Aggregate liquidation preference | $ 9,221 | |||||
Series A-1 | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 7,023,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 0 | |||||
Issuance price per share (in dollars per share) | $ 1.36 | |||||
Net carrying value | $ 0 | |||||
Aggregate liquidation preference | $ 0 | |||||
Series B | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 15,611,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 13,218,000 | |||||
Issuance price per share (in dollars per share) | $ 2.40 | |||||
Net carrying value | $ 27,105 | |||||
Aggregate liquidation preference | $ 31,723 | |||||
Series B-1 | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 15,611,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 0 | |||||
Issuance price per share (in dollars per share) | $ 2.40 | |||||
Net carrying value | $ 0 | |||||
Aggregate liquidation preference | $ 0 | |||||
Series C | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 19,071,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 12,144,000 | |||||
Issuance price per share (in dollars per share) | $ 5.04 | |||||
Net carrying value | $ 56,496 | |||||
Aggregate liquidation preference | $ 61,204 | |||||
Series C-1 | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 19,071,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 3,514,000 | |||||
Issuance price per share (in dollars per share) | $ 5.04 | |||||
Net carrying value | $ 17,708 | |||||
Aggregate liquidation preference | $ 17,708 | |||||
Series D | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 21,603,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 3,482,000 | |||||
Issuance price per share (in dollars per share) | $ 10.50 | |||||
Net carrying value | $ 35,808 | |||||
Aggregate liquidation preference | $ 36,560 | |||||
Series D-1 | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 21,603,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 16,049,000 | |||||
Issuance price per share (in dollars per share) | $ 10.50 | |||||
Net carrying value | $ 168,518 | |||||
Aggregate liquidation preference | $ 168,518 | |||||
Series E | ||||||
Temporary Equity [Line Items] | ||||||
Mezzanine equity, shares authorized (in shares) | 34,933,000 | |||||
Mezzanine equity, shares outstanding (in shares) | 18,956,000 | |||||
Issuance price per share (in dollars per share) | $ 10.77 | |||||
Net carrying value | $ 203,189 | |||||
Aggregate liquidation preference | $ 204,159 | |||||
Common Stock | ||||||
Temporary Equity [Line Items] | ||||||
Shares authorized (in shares) | 400,000,000 | |||||
Shares issued upon conversion (in shares) | 111,271,424 | |||||
Issuance of common stock upon conversion | $ 518,800 |
Common Stock - Narrative (Detai
Common Stock - Narrative (Details) $ / shares in Units, $ in Millions | Jan. 18, 2022USD ($)$ / sharesshares | Mar. 31, 2022shares | Jan. 17, 2022shares | Dec. 31, 2021shares | Mar. 31, 2021shares | Dec. 31, 2020shares |
Class of Stock [Line Items] | ||||||
Shares authorized (in shares) | 690,000,000 | |||||
Common stock, shares authorized (in shares) | 40,000,000 | |||||
Preferred stock, shares authorized (in shares) | 250,000,000 | |||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 400,000,000 | |||||
Shares issued upon conversion (in shares) | 111,271,424 | |||||
Issuance of common stock upon exercise of common stock warrants | $ | $ 518.8 | |||||
Common Stock | Legacy Sonder Common Stockholders | ||||||
Class of Stock [Line Items] | ||||||
Exchange rate | 1.4686 | |||||
Post-Combination Exchangeable Common Shares | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 40,000,000 | |||||
General Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 440,000,000 | |||||
Special Voting Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 40,000,000 | |||||
Redeemable Convertible Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Mezzanine equity, shares outstanding (in shares) | 0 | 75,757,555 | 75,767,000 | 111,257,435 | 111,121,045 |
Common Stock - Schedule of Shar
Common Stock - Schedule of Shares of Common Stock Reserved for Future Issuance (Details) - shares | Mar. 31, 2022 | Dec. 31, 2021 |
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 137,085,047 | 230,720,775 |
Warrants | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 14,499,966 | |
Earnout Liability | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 14,500,000 | |
Recapitalization Earn Out Shares | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 2,475,000 | |
2021 Equity Incentive Plan | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 28,171,591 | |
Stock Options | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 30,802,205 | 19,865,244 |
Stock Options | 2020 Equity Incentive Plan | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 1,859,784 | |
Restricted Stock Units (RSUs) | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 72,254 | |
Exchangeable Shares | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 40,000,000 | |
Preferred Stock and Exchangeable Shares | ||
Class of Stock [Line Items] | ||
Total common stock reserved for future issuance (in shares) | 208,995,747 |
Stockholders_ Equity (Deficit_2
Stockholders’ Equity (Deficit) - Narrative (Details) $ / shares in Units, $ in Thousands | Jan. 01, 2023shares | Jan. 18, 2022shares | Jan. 17, 2022 | Jan. 14, 2022USD ($)$ / sharesshares | Feb. 18, 2021$ / sharesshares | Nov. 15, 2019USD ($)shares | Mar. 31, 2022USD ($)shares | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Total stock-based compensation expense | $ | $ 6,680 | $ 14,153 | |||||||
Chief Executive Officer | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares granted and available for purchase (in shares) | 3,061,794 | 5,613,290 | |||||||
Number of shares issued (in shares) | 1,855,938 | ||||||||
Purchase price of stock (in dollars per share) | $ / shares | $ 13.85 | ||||||||
Aggregate purchase price | $ | $ 25,700 | ||||||||
Chief Executive Officer | IPO Condition | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Average share value (in dollars per share) | $ / shares | $ 25.16 | ||||||||
Chief Executive Officer | Qualified Financing Condition | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Average share value (in dollars per share) | $ / shares | 37.74 | ||||||||
Chief Executive Officer | Market Capitalization Condition | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Average share value (in dollars per share) | $ / shares | $ 44.03 | ||||||||
Chief Executive Officer | Promissory Note | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Amounts due from related party | $ | $ 24,600 | ||||||||
Interest rate payable annually | 2.00% | ||||||||
Debt term | 4 years | ||||||||
Related party notes receivable | $ | $ 25,200 | ||||||||
Common Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Aggregate number of contingently issuable shares (in shares) | 14,500,000 | ||||||||
Special Voting Series AA Common Stock | Legacy Sonder Special Voting Common Stockholders | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Exchange rate | 1.4686 | ||||||||
Sonder Holdings Inc. 2021 Management Equity Incentive Plan | Common Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of capital stock held | 5.00% | ||||||||
Aggregate number of contingently issuable shares (in shares) | 14,500,000 | ||||||||
Sonder Holdings Inc. 2021 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized for issuance (in shares) | 31,507,349 | ||||||||
Percentage of outstanding common stock authorized for issuance | 12.00% | ||||||||
Percentage of shares outstanding as of last day of preceding year | 5.00% | ||||||||
Sonder Holdings Inc. 2021 Equity Incentive Plan | Forecast | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized for issuance (in shares) | 32,820,155 | ||||||||
Percentage of outstanding common stock authorized for issuance | 12.50% | ||||||||
Sonder Holdings Inc. 2021 Equity Incentive Plan | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of additional shares authorized for issuance (in shares) | 26,171,806 | ||||||||
Stock Options | 2013 Stock Option and Grant Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Contractual term | 10 years | ||||||||
Requisite service period | 4 years | ||||||||
Stock Options | Sonder Holdings Inc. 2021 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Contractual term | 10 years | ||||||||
Restricted Stock Units (RSUs) | Sonder Holdings Inc. 2021 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Contractual term | 1 year | ||||||||
Employee Stock | Sonder Holdings Inc. 2021 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of shares outstanding as of last day of preceding year | 1.00% | ||||||||
Employee Stock | Sonder Holdings Inc. 2021 Equity Incentive Plan | Forecast | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized for issuance (in shares) | 6,564,031 | ||||||||
Percentage of outstanding common stock authorized for issuance | 2.50% | ||||||||
Employee Stock | Sonder Holdings Inc. 2021 Employee Stock Purchase Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized for issuance (in shares) | 5,251,225 | ||||||||
Percentage of outstanding common stock authorized for issuance | 2.00% | ||||||||
Percentage of employee compensation eligible for contribution | 15.00% | ||||||||
Offering period | 27 months | ||||||||
Purchase price of common stock, percentage of fair market value | 85.00% | ||||||||
Service-Based Awards | Chief Executive Officer | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Requisite service period | 72 months | ||||||||
Number of shares granted and available for purchase (in shares) | 2,041,197 | ||||||||
Grant date fair value of options | $ | $ 3,200 | $ 1,300 | |||||||
Total stock-based compensation expense | $ | $ 900 | $ 11,600 | |||||||
CEO Performance Awards | Chief Executive Officer | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares granted and available for purchase (in shares) | 3,572,093 | ||||||||
CEO Performance Awards | Chief Executive Officer | IPO Condition | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares granted and available for purchase (in shares) | 1,530,897 | ||||||||
CEO Performance Awards | Chief Executive Officer | Qualified Financing Condition | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares granted and available for purchase (in shares) | 1,020,598 | ||||||||
CEO Performance Awards | Chief Executive Officer | Market Capitalization Condition | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares granted and available for purchase (in shares) | 1,020,598 |
Stockholders_ Equity (Deficit_3
Stockholders’ Equity (Deficit) - Schedule of Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 6,680 | $ 14,153 |
Operations and support | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 930 | 406 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 4,929 | 13,491 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 742 | 255 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 79 | $ 1 |
Stockholders_ Equity (Deficit_4
Stockholders’ Equity (Deficit) - Schedule of Fair Value Inputs for Options (Details) - Stock Options - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 4 years 1 month 2 days | 3 years 11 months 26 days |
Expected volatility | 55.00% | 64.00% |
Dividend yield | 0.00% | 0.00% |
Risk-free interest Rate | 1.79% | 0.41% |
Weighted-average grant-date fair value per share (in dollars per share) | $ 2.13 | $ 4.54 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Schedule of Basic Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator | ||
Net income (loss) | $ 22,392 | $ (78,541) |
Less: Net income (loss) attributable to convertible preferred stock and exchangeable preferred stockholders | (2,872) | 0 |
Net income (loss) attributable to common stockholders | $ 19,520 | $ (78,541) |
Denominator | ||
Basic weighted-average common shares used in computing basic net income (loss) per share (in shares) | 176,326,658 | 10,656,458 |
Basic net income (loss) per share attributable to common stockholders (in dollars per share) | $ 0.11 | $ (7.37) |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Schedule of Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator | ||
Net income (loss) | $ 22,392 | $ (78,541) |
Add: Convertible notes interest expense | 2,727 | 0 |
Less: Change in fair value of share-settled redemption feature and gain on conversion of Convertible Notes | (29,512) | 0 |
Less: Change in fair value of SPAC Warrants | (26,324) | 0 |
Net income (loss) attributable to common stockholders | $ (30,717) | $ (78,541) |
Denominator | ||
Basic (in shares) | 176,326,658 | 10,656,458 |
Weighted-average effect of potentially dilutive securities: | ||
Converted Notes (in shares) | 3,803,421 | 0 |
Private Placement and Public Warrants (in shares) | 8,303,021 | 0 |
Diluted weighted-average common stock outstanding (in shares) | 171,827,058 | 10,656,458 |
Diluted net income (loss) per share attributable to common stockholders (in dollars per share) | $ (0.18) | $ (7.37) |
Net Income (Loss) Per Common _5
Net Income (Loss) Per Common Share - Schedule of Anti-Dilutive Securities (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents (in shares) | 65,402,000 | 173,003,000 |
Options to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents (in shares) | 30,802,000 | 26,588,000 |
Common stock subject to repurchase or forfeiture | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents (in shares) | 2,303,000 | 2,823,000 |
Redeemable convertible preferred stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents (in shares) | 0 | 111,258,000 |
Exchangeable shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents (in shares) | 32,297,000 | 32,334,000 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 31 | $ 23 |
Effective tax rate | 0.00% | 0.10% |
Related party transactions (Det
Related party transactions (Details) - USD ($) $ in Millions | Feb. 18, 2021 | Nov. 15, 2019 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Convertible Debt | |||||
Related Party Transaction [Line Items] | |||||
Aggregate principal amount | $ 165 | ||||
Convertible Notes | Convertible Debt | |||||
Related Party Transaction [Line Items] | |||||
Aggregate principal amount | $ 165 | ||||
Convertible Notes | Convertible Debt | Sonder Investors and Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Aggregate principal amount | $ 43.3 | ||||
Chief Executive Officer | |||||
Related Party Transaction [Line Items] | |||||
Number of shares granted and available for purchase (in shares) | 3,061,794 | 5,613,290 | |||
Chief Executive Officer | Promissory Note | |||||
Related Party Transaction [Line Items] | |||||
Amounts due from related party | $ 24.6 | ||||
Interest on notes receivable from related party | $ 1.1 | ||||
Related party notes receivable | $ 25.2 |
Business Combination - Narrativ
Business Combination - Narrative (Details) $ / shares in Units, $ in Thousands | Jan. 18, 2022USD ($)$ / sharesshares | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Jan. 17, 2022$ / shares | Jan. 14, 2022 |
Business Acquisition [Line Items] | |||||
Increase in cash from business combination | $ | $ 401,918 | ||||
Repayment of debt | $ | 24,680 | $ 2,018 | |||
Nonrecurring transaction costs | $ | 58,555 | ||||
Proceeds from delayed draw notes | $ | $ 159,225 | $ 0 | |||
Existing PIPE Investment holders | |||||
Business Acquisition [Line Items] | |||||
Number of shares issued (in shares) | shares | 20,000,000 | ||||
Purchase price of stock (in dollars per share) | $ / shares | $ 10 | ||||
Aggregate purchase price | $ | $ 200,000 | ||||
New PIPE Investment Holders | |||||
Business Acquisition [Line Items] | |||||
Number of shares issued (in shares) | shares | 11,507,074 | ||||
Purchase price of stock (in dollars per share) | $ / shares | $ 8.89 | ||||
Aggregate purchase price | $ | $ 102,300 | ||||
Gores Metropoulos Sponsor II, LLC | |||||
Business Acquisition [Line Items] | |||||
Number of shares issued (in shares) | shares | 709,711 | ||||
Purchase price of stock (in dollars per share) | $ / shares | $ 10 | ||||
Aggregate purchase price | $ | $ 7,100 | ||||
Common Stock | |||||
Business Acquisition [Line Items] | |||||
Number of shares issued in transaction (in shares) | shares | 190,160,300 | ||||
Common stock par value (in dollars per share) | $ / shares | $ 0.0001 | ||||
Aggregate number of contingently issuable shares (in shares) | shares | 14,500,000 | ||||
Unrecognized stock-based compensation | $ | $ 5,500 | ||||
Common Stock | Legacy Sonder Common Stockholders | |||||
Business Acquisition [Line Items] | |||||
Number of shares issued in transaction (in shares) | shares | 140,544,052 | ||||
Exchange rate | 1.4686 | ||||
Common Stock | Legacy Sonder Stock Option Holders | |||||
Business Acquisition [Line Items] | |||||
Number of shares issued in transaction (in shares) | shares | 30,535,549 | ||||
Exchange rate | 1.5444 | ||||
Special Voting Series AA Common Stock | |||||
Business Acquisition [Line Items] | |||||
Common stock par value (in dollars per share) | $ / shares | $ 0.0001 | ||||
Special Voting Series AA Common Stock | Legacy Sonder Special Voting Common Stockholders | |||||
Business Acquisition [Line Items] | |||||
Number of shares issued in transaction (in shares) | shares | 32,296,539 | ||||
Exchange rate | 1.4686 | ||||
Legacy Sonder | Common Stock | |||||
Business Acquisition [Line Items] | |||||
Common stock par value (in dollars per share) | $ / shares | $ 0.000001 | ||||
Legacy Sonder | Special Voting Series AA Common Stock | |||||
Business Acquisition [Line Items] | |||||
Common stock par value (in dollars per share) | $ / shares | $ 0.000001 | ||||
Sunshine Merger Sub I, LLC | Sunshine Merger Sub II, LLC | |||||
Business Acquisition [Line Items] | |||||
Percentage of outstanding stock owned | 100.00% | ||||
Sunshine Merger Sub II, LLC | |||||
Business Acquisition [Line Items] | |||||
Percentage of outstanding stock owned | 100.00% | ||||
Legacy Sonder | |||||
Business Acquisition [Line Items] | |||||
Percentage of outstanding stock owned | 79.70% |
Business Combination - Schedule
Business Combination - Schedule of Business Combination, PIPE and Delayed Draw Notes (Details) - USD ($) $ in Thousands | Jan. 18, 2022 | Jan. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Business Acquisition [Line Items] | ||||
Cash - PIPE Financing and GMII trust and cash, net of redemptions | $ 325,928 | $ 0 | ||
Less: transaction costs and advisory fees | 58,555 | |||
Net Business Combination and PIPE | 267,373 | |||
Proceeds from Delayed Draw Notes, net of issuance costs of $5,775 | 159,225 | 0 | ||
Repayment of debt | 24,680 | $ 2,018 | ||
Net Business Combination, PIPE, and Delayed Draw Notes | 401,918 | |||
PIPE Financing | ||||
Business Acquisition [Line Items] | ||||
Cash - PIPE Financing and GMII trust and cash, net of redemptions | 309,398 | |||
GMII Trust | ||||
Business Acquisition [Line Items] | ||||
Cash - PIPE Financing and GMII trust and cash, net of redemptions | $ 16,530 | |||
Delayed Draw Notes | ||||
Business Acquisition [Line Items] | ||||
Proceeds from Delayed Draw Notes, net of issuance costs of $5,775 | $ 165,000 | |||
Issuance costs | $ 5,775 |