Latch, Inc. reported its financial results for the third quarter of 2023, revealing a total revenue of $9.7 million, a 9.4% increase from $8.8 million in the same period last year. The growth was primarily driven by a 36.9% rise in software revenue, which reached $4.7 million, and a 27.6% increase in installation services revenue, totaling $1.8 million. However, hardware revenue declined by 20.2% to $3.2 million, attributed to lower unit deliveries and higher returns. The company recorded a net loss of $27.3 million, an improvement from a loss of $34.8 million in the prior year, reflecting a 21.6% reduction in losses.
In terms of operational changes, Latch completed the acquisition of Honest Day’s Work (HDW) on July 3, 2023, which involved issuing $22 million in unsecured promissory notes and approximately 29 million shares of common stock as merger consideration. This acquisition is expected to enhance Latch's technology offerings and operational capabilities. Additionally, the company underwent a significant reduction in force in July 2023, impacting about 70% of its workforce, aimed at streamlining operations and reducing costs.
The company’s total assets decreased to $289.6 million as of September 30, 2023, down from $316.7 million at the end of 2022. This decline was primarily due to a reduction in cash and cash equivalents, which fell to $56.3 million from $109.8 million. Latch's total liabilities increased to $106.5 million, largely driven by the reclassification of the promissory notes as current liabilities due to anticipated repayment within the next year. The company’s stockholders' equity also decreased to $183.1 million from $240.8 million, reflecting the ongoing net losses.
Looking ahead, Latch aims to leverage the HDW acquisition to expand its product offerings and improve customer engagement. The company is focused on enhancing its go-to-market strategy and investing in research and development to drive innovation. Despite the challenges posed by market conditions and operational restructuring, Latch remains optimistic about its future growth potential, supported by its strategic initiatives and a commitment to improving its financial performance.
About Latch, Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.