Wed, Mar 26, 8:16 PM (31 days ago)
**Latch, Inc. (LTCHQ) Q3 2023 Financial Summary** **Financial Health & Performance:** - **Revenue:** $9.7M (Q3 2023) vs. $8.8M (Q3 2022) - **Hardware:** $3.2M (Q3 2023) vs. $4.0M (Q3 2022) - **Software:** $4.7M (Q3 2023) vs. $3.4M (Q3 2022) - **Installation Services:** $1.8M (Q3 2023) vs. $1.4M (Q3 2022) - **Net Loss:** $27.3M (Q3 2023) vs. $34.8M (Q3 2022) - **Cash Flow:** Negative $73.9M (Q3 2023) vs. Negative $113.6M (Q3 2022) - **Earnings per Share (EPS):** -$0.16 (Q3 2023) vs. -$0.24 (Q3 2022) - **Adjusted EBITDA:** -$13.4M (Q3 2023) vs. -$21.5M (Q3 2022) **Key Metrics & Trends:** - **Revenue Growth:** 9.4% YoY - **Software Revenue Growth:** 36.9% YoY - **Hardware Revenue Decline:** 20.2% YoY - **Installation Services Revenue Growth:** 27.6% YoY - **Cost of Revenue Decline:** 47.4% YoY - **Operating Expenses:** Relatively flat YoY - **Cash Position:** $56.3M (Q3 2023) vs. $109.8M (Q2 2023) **Uncertainties & Future Operations Impact:** - **Delisting from Nasdaq:** Completed in April 2024 - **SEC Investigation:** Ongoing, outcome uncertain - **Legal Contingencies:** Multiple lawsuits and settlements - **Restructuring:** Completed reduction in force (RIF) in Q4 2023 - **Acquisitions:** HDW Acquisition completed in Q2 2023, HelloTech Merger completed in Q2 2024 - **Cash Flow:** Negative trend, but improved YoY - **Revenue Recognition Issues:** Ongoing remediation of material weaknesses - **Market Conditions:** Struggling with brand issues and customer relationships **Conclusion:** Latch, Inc. faces significant challenges, including revenue recognition issues, legal contingencies, and cash flow management. Despite a positive trend in software revenue, the company's hardware revenue and overall financial health remain under pressure. The delisting from Nasdaq and ongoing SEC investigation add to the uncertainties. The company is focusing on restructuring and remediation efforts to address these issues. Investors should closely monitor the company's progress in resolving these challenges and improving its financial performance.