Table of Contents The increase in membership and service revenue due to growth in our membership base was slightly offset by a decline in average revenue per WeWork membership for the year ended December 31, 2017 as compared to the year ended December 31, 2016. Average revenue per WeWork membership has experienced a decline primarily as we have expanded into different global markets with different pricing structures and in some cases may also use discounts to attract members as we open new locations at a faster rate. Other revenue increased $17.4 million to $19.1 million for the year ended December 31, 2017, from $1.7 million for the year ended December 31, 2016 due to the launch of our Powered by We solutions, which represented $13.7 million of the increase in other revenue during the year ended December 31, 2017. During 2017, we also acquired Meetup and Flatiron School. The collective revenue earned by these offerings for the periods subsequent to their acquisitions during the year ended December 31, 2017 contributed $3.2 million of the increase. The remaining increase in other revenue of $0.5 million relates to revenue from various other activities not directly related to our workplace solutions. Location Operating Expenses Comparison of the Six Months Ended June 30, 2018 and the Six Months Ended June 30, 2019 Six Months Ended June 30, Change (Amounts in thousands, except percentages) 2018 2019 $ % Real estate operating lease cost $ 416,016 $ 835,800 $ 419,784 101% Employee compensation and benefits (excluding stock-based compensation) 80,794 148,825 68,031 84% Stock-based compensation 6,420 25,953 19,533 304% Other location operating expenses 132,738 222,363 89,625 68% Total location operating expenses $ 635,968 $ 1,232,941 $ 596,973 94% N/M = Not meaningful Location operating expenses increased $597.0 million to $1.2 billion due to the overall growth of our global platform and the increase in the number of open locations. As a percentage of total revenue, location operating expenses for the six months ended June 30, 2019 was 80%, which remained relatively flat as compared to 83% for the six months ended June 30, 2018. Our most significant location operating expense is operating lease cost, which includes the following components and changes: Six Months Ended June 30, Change (Amounts in thousands, except percentages) 2018 2019 $ % Lease cost contractually paid or payable $ 337,729 $ 707,075 $ 369,346 109% Non-cash GAAP straight-line lease cost 117,178 198,124 80,946 69% Amortization of lease incentives (38,891) (69,399) (30,508) 78% Total location operating lease cost $ 416,016 $ 835,800 $ 419,784 101% 94

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