Table of Contents Our Space-as-a-Service Offering We pioneered a “space-as-a-service” membership model. Across our global portfolio of locations, we offer individuals and organizations the flexibility to scale workspace up and down as needed, with the ability to consume space by the minute, by the month or by the year. Our space-as-a-service offering significantly reduces the complexity of leasing real estate to a simplified membership model, while delivering a premium experience to our members at a lower price relative to traditional alternatives and moving fixed lease costs to variable costs for our members. Our membership model is transforming the way individuals and organizations consume commercial real estate. Our space-as-a-service membership model offers members global, 24/7 access to our locations, beautifully designed workspaces, flexible workspace configurations as needed, a common set of amenities, on-site community teams, a growing number of value-added products and services and a member experience powered by technology. We have found that our membership model meets the employee needs of organizations of all sizes. In particular, through a variety of space solutions, we can meet an enterprise’s distinct needs on a flexible and cost-effective basis with availability around the world. As of June 1, 2019, 40% of our memberships were with enterprise members, including 51% of the Fortune 100 and 38% of the Fortune 500. In many cases, members have started in one of our locations and scaled globally, with 76% of our top 100 enterprise members having memberships with us across multiple countries. We believe that enterprises will continue to turn to us to solve their workspace needs as they realize the benefits of the flexibility, global mobility and variable and lower costs that we offer. As additional enterprise members adopt our space-as-a-service model, we have started to track a set of conventional software-as-a-service measurements across our member base, including run-rate revenue, committed revenue backlog, net membership retention rates, average commitment term of our membership agreements and member acquisition costs. From a revenue perspective, as of June 30, 2019, our run-rate revenue was $3.3 billion, representing 86% year-over-year growth, and our committed revenue backlog was $4.0 billion, approximately eight times our committed revenue backlog as of December 31, 2017. Our committed revenue backlog is principally driven by the average commitment term of our membership agreements, which has nearly doubled from approximately eight months as of December 1, 2017 to more than 15 months as of June 1, 2019. We believe that improvements in the products and services we offer on our platform, combined with the lower total cost of space that we offer our members compared to traditional alternatives, will continue to improve these metrics and our already positive net member retention rates. We similarly believe our scale and growing efficiencies will continue to decrease our member acquisition costs through reduction in our net capex per workstation added as well as more efficient marketing, lower-cost sales programs and the growing percentage of our revenue coming from existing members. For example, we have reduced our net capex per workstation added by 50%, from $7,289 for projects completed during 2014 to $3,661 for projects completed during the first half of 2019. The rapid adoption of our space-as-a-service offering, including growth in the number of partners who offer products and services on our platform, evidences the value proposition of our space-as-a-service membership model. 143