Latch, Inc. (NASDAQ: LTCH) (“Latch” or the “Company”), maker of
LatchOS, the full-building enterprise software-as-a-service (SaaS)
platform, today reported financial results for the three months and
year ended December 31, 2021.
“It was another strong quarter for Latch, wrapping up a big 2021
for our team. Not only did we take the company public earlier in
the year, but we also experienced really strong growth, resulting
in a 129% increase in total revenue,” said Luke Schoenfelder, Latch
Co-Founder, CEO, and Chairman of the Board of Directors. “As we
look ahead, I’m confident that our focus on partnerships,
innovation, and new market expansion will continue to pave the way
for the industry and help deliver the power of LatchOS to even more
spaces, customers, and users.”
Three Months Ended December 31, 2021 and 2020 Financial
Highlights
$ in thousands (unaudited)
|
|
Three months ended December 31, |
|
|
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
$ Change |
|
% Change |
Revenue |
|
$ |
14,522 |
|
|
$ |
7,488 |
|
|
$ |
7,034 |
|
|
94 |
% |
Cost of revenue |
|
$ |
18,481 |
|
|
$ |
7,848 |
|
|
$ |
10,633 |
|
|
135 |
% |
Operating expenses |
|
$ |
57,059 |
|
|
$ |
15,535 |
|
|
$ |
41,524 |
|
|
267 |
% |
Other income (expense) (1) |
|
$ |
7,110 |
|
|
$ |
(3,298 |
) |
|
$ |
10,408 |
|
|
316 |
% |
GAAP net loss |
|
$ |
(53,908 |
) |
|
$ |
(19,193 |
) |
|
$ |
(34,715 |
) |
|
(181 |
%) |
Year Ended December 31, 2021 and 2020 Financial
Highlights
$ in thousands (unaudited)
|
|
Year ended December 31, |
|
|
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
$ Change |
|
% Change |
Revenue |
|
$ |
41,360 |
|
|
$ |
18,061 |
|
|
$ |
23,299 |
|
|
129 |
% |
Cost of revenue |
|
$ |
44,038 |
|
|
$ |
20,239 |
|
|
$ |
23,799 |
|
|
118 |
% |
Operating expenses |
|
$ |
145,890 |
|
|
$ |
59,619 |
|
|
$ |
86,271 |
|
|
145 |
% |
Other income (expense) (1)(2) |
|
$ |
(17,751 |
) |
|
$ |
(4,197 |
) |
|
$ |
(13,554 |
) |
|
(323 |
%) |
GAAP net loss |
|
$ |
(166,319 |
) |
|
$ |
(65,994 |
) |
|
$ |
(100,325 |
) |
|
(152 |
%) |
|
|
|
|
|
|
|
|
|
Net cash used in operations |
|
$ |
(105,860 |
) |
|
$ |
(53,642 |
) |
|
$ |
(52,218 |
) |
|
(97 |
%) |
Cash and Cash equivalents balance (3) |
|
$ |
124,782 |
|
|
$ |
60,529 |
|
|
|
|
|
(1) Other income (expense) includes income
taxes.
(2) Other income (expense) for the year ended
December 31, 2021 includes: (a) $12.6 million unfavorable change in
the fair value of the derivative liabilities related to our
convertible notes and warrants related to our term loan; (b) $4.1
million gain on the revaluation of our private placement warrants;
(c) $1.5 million loss on extinguishment of debt related to the
convertible notes and warrants related to our term loan; (d) $8.1
million interest expense primarily related to our convertible
notes; and (e) $0.3 million in investment income.
(3) During the year ended December 31, 2021,
Latch invested in available-for-sale securities, including high
quality asset backed securities, commercial paper, corporate bonds
and U.S. government agency debt securities. As of December 31,
2021, the fair value of Latch’s available-for-sale securities was
$261.9 million.
Key Business Metrics
- Total
Bookings: Total Bookings for the three months ended
December 31, 2021 were $96.8 million, up 113% compared to $45.3
million for the same period in 2020. Total Bookings for the year
ended December 31, 2021 were $360.2 million, up 118% compared to
$165.0 million for the same period in 2020.
- Booked
ARR: Booked ARR for the three months and year ended
December 31, 2021 was $71.5 million, up 130% compared to $31.1
million for the same periods in 2020.
-
Cumulative Booked Home Units: Cumulative Booked
Home Units for the three months and year ended December 31, 2021
were approximately 590,000, up 94% compared to approximately
304,700 for the same periods in 2020.
- Net
Loss: Net loss for the three months ended December 31,
2021 was $53.9 million, down compared to $19.2 million during the
same period in 2020. Net loss for the year ended December 31, 2021
was $166.3 million, down compared to $66.0 million in the same
period in 2020.
- Adjusted
EBITDA: Adjusted EBITDA for the three months ended
December 31, 2021 was $(44.4) million, down compared to $(12.9)
million during the same period in 2020. Adjusted EBITDA for the
year ended December 31, 2021 was $(101.9) million, down compared to
$(54.8) million in the same period in 2020. Please see below for a
reconciliation of Adjusted EBITDA to our closest GAAP metric, net
loss, as well as a discussion of why we view Adjusted EBITDA as an
important metric.
Recent Business Highlights
- In the fourth
quarter, Latch announced new partnerships with Marks USA, a
division of NAPCO Security Technologies (NASDAQ: NSSC), and
TownSteel, Inc., along with an intended partnership with dormakaba
Holding AG (SWX: DOKA). The combination of these partnerships
should bring LatchOS to even more residents, property managers, and
guests, and help accelerate Latch’s growth across new market
segments, lock formats, and verticals. The offerings with Marks,
TownSteel, and dormakaba are expected to be the first access-based
partner offerings in Latch’s growing ecosystem of integrated
first-, second-, and third-party devices, software, and
services.
Financial Outlook
Latch is providing guidance for first quarter
2022 and full year 2022 as follows:
- First
Quarter 2022 Guidance: We expect software revenue to be in
the range of $2.7 million to $2.8 million, a 67% to 73%
year-over-year increase. We expect total revenue to be in the range
of $12.7 million to $14.8 million, a 92% to 123% year-over-year
increase. We expect Adjusted EBITDA to be in the range of ($42)
million to ($38) million.
- Full
Year 2022 Guidance: We expect software revenue to be in
the range of $14 million to $15 million, a 70% to 82%
year-over-year increase. We expect total revenue to be in the range
of $75 million to $100 million, an 81% to 142% year-over-year
increase. We expect Adjusted EBITDA to be in the range of ($180)
million to ($160) million.
Quarterly Conference Call
Latch will host a conference call today at 5:00
p.m. Eastern Time to review the Company’s financial results for the
quarter and full year ended December 31, 2021. To access this call,
dial (833) 562-0132 for the United States or Canada, or (661)
567-1107 for callers outside the United States or Canada, with
Conference ID: 6764765. A live webcast of the conference call will
be accessible from the Investor Relations section of Latch’s
website at https://investors.latch.com, and a recording will be
archived and accessible at https://investors.latch.com.
Additional Information
For additional information regarding Latch’s
fourth quarter and full year 2021 financial results that management
believes to be useful for investors, please refer to the
presentation posted on the Investor Relations section of Latch’s
website at https://investors.latch.com.
About Latch, Inc.
Latch makes spaces better places to live, work,
and visit through a system of software, devices, and services. More
than one in ten new apartments in the U.S. are currently being
built with Latch products, serving customers in more than 44 states
through its flagship full-building operating system, LatchOS. For
more information, please visit https://www.latch.com.
Key Business Metrics
Latch reviews key business metrics to measure
its performance, identify trends affecting its business, formulate
business plans, and make strategic decisions that will impact the
future operational results of the Company. For definitions of our
key business metrics, see our most recent quarterly report on Form
10-Q or annual report on Form 10-K filed with the Securities and
Exchange Commission (the “SEC”). Increases or decreases in the
Company’s key business metrics may not correspond with increases or
decreases in its revenue.
The limitations these key business metrics have
as an analytical tool include: (1) they might not accurately
predict the Company’s future financial results, (2) the Company
might not realize all or any part of the anticipated value
reflected in its Total Bookings, and (3) other companies, including
companies in Latch’s industry, may calculate key business metrics
or similarly titled measures differently, which reduces their
usefulness as comparative measures.
The key business metrics presented for the three
months and year ended December 31, 2021 represent our key business
metrics for the year ended December 31, 2021. We have undertaken a
strategic review of these metrics and, beginning with the three
months ending March 31, 2022, we anticipate no longer reporting the
following metrics as key business metrics: Total Bookings, Booked
ARR, and Cumulative Booked Home Units. This change is intended to
better align our key business metrics with our internal priorities
and business plans for the Company for 2022 and beyond. Rather than
focusing on bookings-related metrics that represent future target
deliveries, we plan to focus on the near-term delivery of software
revenue. We intend to continue reporting Total Revenue (GAAP) and
Net Loss (GAAP) as key business metrics during the year ending
December 31, 2022, and we also intend to begin reporting Software
Revenue (GAAP) as an additional key business metric.
We anticipate reviewing and reporting new key
business metrics beginning with the three months ending March 31,
2022, including “ARR” and “Spaces.” Brief descriptions of these new
key business metrics are provided below. We will provide additional
detail regarding these key business metrics when we begin reporting
them in subsequent periods.
ARR is the value of annual recurring revenue
from software or services subscriptions at the end of the period,
net of promotional and term discounts.
Spaces is the count of units that actively
generate software or services revenue, in alignment with Latch’s
revenue recognition policy.
Non-GAAP Financial Measures
To supplement our financial statements presented
in accordance with generally accepted accounting principles
(“GAAP”) and to provide investors with additional information
regarding our financial results, we have presented in this press
release Adjusted EBITDA, a non-GAAP financial measure. Adjusted
EBITDA is not based on any standardized methodology prescribed by
GAAP and is not necessarily comparable to similarly titled measures
presented by other companies.
We define Adjusted EBITDA as our net loss,
excluding the impact of stock-based compensation expense,
depreciation and amortization expense, interest income, interest
expense, provision for income taxes, restructuring, one-time
litigation expenses, loss on extinguishment of debt, gain or loss
on change in fair value of derivative instruments, warrant
liabilities and trading securities, and our transaction related
expenses. The most directly comparable GAAP measure is net loss. We
monitor, and have presented in this press release, Adjusted EBITDA
because it is a key measure used by our management and Board of
Directors to understand and evaluate our operating performance, to
establish budgets, and to develop operational goals for managing
our business. In particular, we believe excluding the impact of
these expenses in calculating Adjusted EBITDA can provide a useful
measure for period-to-period comparisons of our core operating
performance. We believe Adjusted EBITDA helps identify underlying
trends in our business that could otherwise be masked by the effect
of the expenses that we include in net loss. Accordingly, we
believe Adjusted EBITDA provides useful information to investors,
analysts, and others in understanding and evaluating our operating
results, enhancing the overall understanding of our past
performance.
Adjusted EBITDA is not prepared in accordance
with GAAP and should not be considered in isolation of, or as an
alternative to, measures prepared in accordance with GAAP. There
are a number of limitations related to the use of Adjusted EBITDA
rather than net loss, which is the most directly comparable
financial measure calculated and presented in accordance with GAAP.
In addition, the expenses and other items that we exclude in our
calculations of Adjusted EBITDA may differ from the expenses and
other items, if any, that other companies may exclude from Adjusted
EBITDA when they report their operating results.
In addition, other companies may use other
measures to evaluate their performance, all of which could reduce
the usefulness of Adjusted EBITDA as a tool for comparison.
Latch has not reconciled its Adjusted EBITDA
guidance metrics to GAAP net earnings or loss because certain of
the reconciling items cannot be reasonably calculated or predicted
at this time. Accordingly, a reconciliation is not available
without unreasonable effort.
The following table reconciles Adjusted EBITDA
to net loss, the most directly comparable financial measure
calculated and presented in accordance with GAAP.
|
|
For the three months ended December 31, |
|
For the year ended December 31, |
(In thousands) |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net loss |
|
$ |
(53,908 |
) |
|
$ |
(19,193 |
) |
|
$ |
(166,319 |
) |
|
$ |
(65,994 |
) |
Depreciation and amortization |
|
|
1,072 |
|
|
|
475 |
|
|
|
3,239 |
|
|
|
1,382 |
|
Interest (income) expense, net (1) |
|
|
810 |
|
|
|
2,363 |
|
|
|
7,781 |
|
|
|
3,172 |
|
Provision for (benefit from) income taxes |
|
|
(47 |
) |
|
|
5 |
|
|
|
53 |
|
|
|
8 |
|
Loss on extinguishment of debt |
|
|
- |
|
|
|
199 |
|
|
|
1,469 |
|
|
|
199 |
|
Change in fair value of derivative liabilities |
|
|
- |
|
|
|
848 |
|
|
|
12,588 |
|
|
|
863 |
|
Change in fair value of warrant liability |
|
|
(7,813 |
) |
|
|
- |
|
|
|
(4,085 |
) |
|
|
- |
|
Change in fair value of trading security |
|
|
(50 |
) |
|
|
- |
|
|
|
(50 |
) |
|
|
- |
|
Restructuring costs (2) |
|
|
- |
|
|
|
95 |
|
|
|
- |
|
|
|
1,065 |
|
Transaction-related costs (3) |
|
|
576 |
|
|
|
1,568 |
|
|
|
6,606 |
|
|
|
1,568 |
|
Litigation costs (4) |
|
|
6,927 |
|
|
|
- |
|
|
|
6,927 |
|
|
|
1,046 |
|
Stock-based compensation and warrant expense (5) |
|
|
8,019 |
|
|
|
778 |
|
|
|
29,884 |
|
|
|
1,848 |
|
Adjusted EBITDA |
|
$ |
(44,414 |
) |
|
$ |
(12,862 |
) |
|
$ |
(101,907 |
) |
|
$ |
(54,843 |
) |
(1) As a result of significant
discounts provided to our customers on our longer-term software
contracts paid upfront, the Company has determined that there is a
significant financing component related to the time value of money
and has therefore broken out the interest component and recorded it
as a component of interest income (expense), net on the
consolidated statements of operations and comprehensive loss. The
interest expense is recorded using the effective interest method,
which has higher interest expense at inception and declines over
time to match the underlying economics of the transaction where the
outstanding principal balance decreases over time. Interest expense
associated with the significant financing component included in
interest (income) expense, net was $0.9 million and $0.5 million
for the three months ended December 31, 2021 and 2020,
respectively, and $3.1 million and $1.5 million for the years ended
December 31, 2021 and 2020, respectively.
(2) The Company initiated a restructuring plan
in the first quarter of 2020 as part of its efforts to reduce
operating expenses and preserve liquidity due to the uncertainty
and challenges stemming from the COVID-19 pandemic. The
restructuring included a reduction in force involving an
approximate 25% reduction in headcount, which resulted in severance
and benefit costs for affected employees and other miscellaneous
direct costs. These costs are primarily included within research
and development, sales and marketing, and general and
administrative based on the department to which the expense
relates.
(3) Transaction costs related to the business
combination of TS Innovation Acquisitions Corp. (“TSIA”) and Latch.
These costs are included within operating expenses.
(4) Legal and settlement fees incurred in
connection with non-ordinary course litigation and other disputes,
including $6.8 million related to an estimated liability recorded
in connection with a dispute with a service provider during the
year ended December 31, 2021. These costs are included within
operating expenses.
(5) Stock-based compensation and warrant expense
associated with equity compensation plans, including $14.6 million
related to RSUs granted during the year ended December 31, 2021 and
$13.8 million related to the secondary purchase transaction during
the year ended December 31, 2021.
FORWARD-LOOKING STATEMENTS
This release contains certain forward-looking
statements within the meaning of the federal securities laws,
including statements regarding adoption of Latch’s technology and
products. These forward-looking statements generally are identified
by the words "believe," "project," "expect," "anticipate,"
"estimate," "intend," "strategy," "future," "opportunity," "plan,"
"may," "should," "would," "will continue," "will likely result,"
and similar expressions. Forward-looking statements are
predictions, projections, and other statements about future events
that are based on current expectations and assumptions and, as a
result, are subject to risks and uncertainties. Forward-looking
information includes, but is not limited to, statements regarding:
the use of proceeds received in connection with the business
combination with TSIA, the Company’s future products, performance,
and operations, and the related benefits to shareholders,
customers, and residents; and the Company’s strategy. Many factors
could cause actual future events to differ materially from the
forward-looking statements in this document, including Latch’s
ability to implement business plans and changes and developments in
the industry in which Latch competes. The foregoing list of factors
is not exhaustive. You should carefully consider the foregoing
factors and the other risks and uncertainties described in the
"Risk Factors" section of our Registration Statement on Form S-1
filed with the SEC on June 25, 2021, our most recent annual report
on Form 10-K, and other documents filed by Latch from time to time
with the SEC. These filings identify and address other important
risks and uncertainties that could cause actual events and results
to differ materially from those contained in the forward-looking
statements. Forward-looking statements speak only as of the date
they are made. Readers are cautioned not to put undue reliance on
forward-looking statements, and the Company assumes no obligation
to update or revise these forward-looking statements, whether as a
result of new information, future events, or otherwise, except as
required by law, including the securities laws of the United States
and the rules and regulations of the SEC. The Company does not give
any assurance that it will achieve its expectations.
CONTACTS:
Investors:
investors@latch.com
Media:
press@latch.com
Latch, Inc. and
SubsidiariesConsolidated Balance
SheetsAs of December 31, 2021 and
2020(in thousands, unaudited)
|
December 31, 2021 |
|
December 31, 2020 |
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
124,782 |
|
|
$ |
60,529 |
|
Available-for-sale securities
- current |
|
158,973 |
|
|
|
— |
|
Accounts receivable, net |
|
25,642 |
|
|
|
8,227 |
|
Inventories, net |
|
11,615 |
|
|
|
8,293 |
|
Prepaid expenses and other
current assets |
|
11,606 |
|
|
|
3,309 |
|
Total current assets |
|
332,618 |
|
|
|
80,358 |
|
Property and equipment,
net |
|
2,039 |
|
|
|
753 |
|
Available-for-sale securities
- non-current |
|
102,878 |
|
|
|
— |
|
Internally developed software,
net |
|
12,475 |
|
|
|
7,416 |
|
Other non-current assets |
|
2,294 |
|
|
|
1,082 |
|
Total assets |
$ |
452,304 |
|
|
$ |
89,609 |
|
Liabilities, Redeemable Convertible Preferred Stock and
Stockholders’ Equity (Deficit) |
Current liabilities |
|
|
|
Accounts payable |
$ |
6,229 |
|
|
$ |
3,732 |
|
Accrued expenses |
|
24,184 |
|
|
|
5,781 |
|
Deferred revenue—current |
|
6,016 |
|
|
|
2,344 |
|
Other current liabilities |
|
4,342 |
|
|
|
— |
|
Total current liabilities |
|
40,771 |
|
|
|
11,857 |
|
Deferred
revenue—non-current |
|
24,190 |
|
|
|
13,178 |
|
Term loan, net |
|
— |
|
|
|
5,481 |
|
Convertible notes, net |
|
— |
|
|
|
51,714 |
|
Warrant liability |
|
9,787 |
|
|
|
— |
|
Other non-current
liabilities |
|
— |
|
|
|
1,051 |
|
Total liabilities |
|
74,748 |
|
|
|
83,281 |
|
Commitments and contingencies
(see Note 11) |
|
|
|
Redeemable convertible
preferred stock: $0.00001 par value, 63,877,518 shares authorized,
63,756,438 shares issued and outstanding as of December 31,
2020; liquidation preference—$165,562(1) |
|
— |
|
|
|
160,605 |
|
Stockholders’ equity
(deficit) |
|
|
|
Common stock, $0.0001 par
value, 1,000,000,000 shares authorized, and 141,592,388 and
8,168,780 shares issued and outstanding as of December 31,
2021 and 2020, respectively(1) |
|
25 |
|
|
|
— |
|
Additional paid-in
capital |
|
706,713 |
|
|
|
7,901 |
|
Accumulated other
comprehensive income (loss) |
|
(676 |
) |
|
|
9 |
|
Accumulated deficit |
|
(328,506 |
) |
|
|
(162,187 |
) |
Total stockholders’ equity
(deficit) |
|
377,556 |
|
|
|
(154,277 |
) |
Total liabilities, redeemable
convertible preferred stock and stockholders’ equity (deficit) |
$ |
452,304 |
|
|
$ |
89,609 |
|
(1) Shares outstanding for all
periods reflect the adjustment for the Exchange Ratio of 0.8971 as
a result of the business combination of TSIA and Latch. Shares
issued and outstanding as of December 31, 2021 excludes
738,000 shares subject to vesting requirements. Latch, Inc.
and SubsidiariesConsolidated Statements of
Operations and Comprehensive LossYears ended
December 31, 2021, 2020 and 2019(in thousands,
except share and per share amounts, unaudited)
|
Year Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
Revenue: |
|
|
|
|
|
Hardware and other related revenue |
$ |
33,135 |
|
|
$ |
14,264 |
|
|
$ |
13,501 |
|
Software revenue |
|
8,225 |
|
|
|
3,797 |
|
|
|
1,386 |
|
Total revenue |
|
41,360 |
|
|
|
18,061 |
|
|
|
14,887 |
|
Cost of revenue(1)(2): |
|
|
|
|
|
Cost of hardware and other related revenue |
|
43,290 |
|
|
|
19,933 |
|
|
|
17,084 |
|
Cost of software revenue |
|
748 |
|
|
|
306 |
|
|
|
213 |
|
Total cost of revenue |
|
44,038 |
|
|
|
20,239 |
|
|
|
17,297 |
|
Operating expenses: |
|
|
|
|
|
Research and development(2) |
|
45,848 |
|
|
|
25,314 |
|
|
|
18,340 |
|
Sales and marketing(2) |
|
34,985 |
|
|
|
13,126 |
|
|
|
13,084 |
|
General and administrative(2) |
|
61,818 |
|
|
|
19,797 |
|
|
|
15,146 |
|
Depreciation and amortization |
|
3,239 |
|
|
|
1,382 |
|
|
|
723 |
|
Total operating expenses |
|
145,890 |
|
|
|
59,619 |
|
|
|
47,293 |
|
Loss from operations |
|
(148,568 |
) |
|
|
(61,797 |
) |
|
|
(49,703 |
) |
Other income (expense) |
|
|
|
|
|
Change in fair value of derivative liabilities |
|
(12,588 |
) |
|
|
(863 |
) |
|
|
— |
|
Change in fair value of warrant liability |
|
4,085 |
|
|
|
— |
|
|
|
— |
|
Change in fair value of trading security |
|
50 |
|
|
|
— |
|
|
|
— |
|
Loss on extinguishment of debt |
|
(1,469 |
) |
|
|
(199 |
) |
|
|
(916 |
) |
Interest income (expense), net |
|
(7,777 |
) |
|
|
(3,172 |
) |
|
|
443 |
|
Other income (expense) |
|
1 |
|
|
|
45 |
|
|
|
— |
|
Total other expense |
|
(17,698 |
) |
|
|
(4,189 |
) |
|
|
(473 |
) |
Loss before income taxes |
|
(166,266 |
) |
|
|
(65,986 |
) |
|
|
(50,176 |
) |
Provision for income
taxes |
|
53 |
|
|
|
8 |
|
|
|
50 |
|
Net loss |
$ |
(166,319 |
) |
|
$ |
(65,994 |
) |
|
$ |
(50,226 |
) |
Other comprehensive income
(loss) |
|
|
|
|
|
Unrealized loss on available-for-sale securities |
|
(677 |
) |
|
|
— |
|
|
|
— |
|
Foreign currency translation adjustment |
|
(8 |
) |
|
|
9 |
|
|
|
— |
|
Comprehensive
loss |
$ |
(167,004 |
) |
|
$ |
(65,985 |
) |
|
$ |
(50,226 |
) |
Net loss per common
share: |
|
|
|
|
|
Basic and diluted net loss per common share |
$ |
(1.92 |
) |
|
$ |
(9.12 |
) |
|
$ |
(7.65 |
) |
Weighted average shares
outstanding: |
|
|
|
|
|
Basic and diluted |
|
86,473,291 |
|
|
|
7,238,708 |
|
|
|
6,564,820 |
|
(1) Exclusive of depreciation and amortization
shown in operating expenses below.(2) Stock-based
compensation expense included in cost of revenue and operating
expenses is as follows:
Cost of hardware and other related revenue |
$ |
192 |
|
$ |
15 |
|
$ |
50 |
Cost of software revenue |
|
18 |
|
|
— |
|
|
1 |
Research and development |
|
10,743 |
|
|
413 |
|
|
559 |
Sales and marketing |
|
3,747 |
|
|
210 |
|
|
163 |
General and administrative |
|
15,184 |
|
|
887 |
|
|
2,761 |
Total stock-based compensation |
$ |
29,884 |
|
$ |
1,525 |
|
$ |
3,534 |
Latch, Inc. and
SubsidiariesConsolidated Statements of Cash
FlowsYears Ended December 31, 2021, 2020 and
2019 (in thousands, unaudited)
|
Year ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2019 |
|
Operating
activities |
|
|
|
|
|
Net loss |
$ |
(166,319 |
) |
|
$ |
(65,994 |
) |
|
$ |
(50,226 |
) |
Adjustments to reconcile net loss to net cash used by operating
activities |
|
|
|
|
|
Depreciation and amortization |
|
3,239 |
|
|
|
1,382 |
|
|
|
723 |
|
Non-cash interest expense |
|
4,537 |
|
|
|
1,292 |
|
|
|
157 |
|
Change in fair value of derivatives |
|
12,588 |
|
|
|
863 |
|
|
|
— |
|
Change in fair value of warrant liability |
|
(4,085 |
) |
|
|
— |
|
|
|
— |
|
Change in fair value of trading security |
|
(50 |
) |
|
|
— |
|
|
|
— |
|
Loss on extinguishment of debt |
|
1,469 |
|
|
|
199 |
|
|
|
916 |
|
Loss on disposal of property and equipment |
|
— |
|
|
|
36 |
|
|
|
— |
|
Warrant expense |
|
— |
|
|
|
391 |
|
|
|
38 |
|
Provision for excess and obsolete inventory |
|
186 |
|
|
|
145 |
|
|
|
150 |
|
Allowance for doubtful accounts |
|
1,892 |
|
|
|
67 |
|
|
|
266 |
|
Stock-based compensation |
|
29,884 |
|
|
|
1,525 |
|
|
|
3,534 |
|
Changes in assets and liabilities |
|
|
|
|
|
Accounts receivable |
|
(19,307 |
) |
|
|
(1,267 |
) |
|
|
(6,453 |
) |
Inventories |
|
(3,508 |
) |
|
|
(2,285 |
) |
|
|
(3,376 |
) |
Prepaid expenses and other current assets |
|
(2,450 |
) |
|
|
(1,753 |
) |
|
|
(733 |
) |
Other non-current assets |
|
(661 |
) |
|
|
(551 |
) |
|
|
(201 |
) |
Accounts payable |
|
2,496 |
|
|
|
(58 |
) |
|
|
2,871 |
|
Accrued expenses |
|
17,946 |
|
|
|
2,861 |
|
|
|
(1,424 |
) |
Other current liabilities |
|
974 |
|
|
|
— |
|
|
|
— |
|
Other non-current liabilities |
|
626 |
|
|
|
1,051 |
|
|
|
— |
|
Deferred revenue |
|
14,683 |
|
|
|
8,454 |
|
|
|
6,133 |
|
Net cash used in operating activities |
|
(105,860 |
) |
|
|
(53,642 |
) |
|
|
(47,625 |
) |
Investing
activities |
|
|
|
|
|
Purchase of available-for-sale securities |
|
(269,237 |
) |
|
|
— |
|
|
|
— |
|
Proceeds from sales and maturities of available-for-sale
securities |
|
4,644 |
|
|
|
— |
|
|
|
— |
|
Purchase of trading security |
|
(4,250 |
) |
|
|
— |
|
|
|
— |
|
Purchase of property and equipment |
|
(1,541 |
) |
|
|
(269 |
) |
|
|
(908 |
) |
Development of internal software |
|
(6,579 |
) |
|
|
(5,000 |
) |
|
|
(2,854 |
) |
Purchase of intangible assets |
|
(700 |
) |
|
|
(199 |
) |
|
|
(4 |
) |
Net cash used in investing activities |
|
(277,663 |
) |
|
|
(5,468 |
) |
|
|
(3,766 |
) |
Financing
activities |
|
|
|
|
|
Proceeds from issuance of Series B preferred stock, net of issuance
costs |
|
— |
|
|
|
— |
|
|
|
246 |
|
Proceeds from issuance of Series B-1 preferred stock, net of
issuance costs |
|
— |
|
|
|
10,300 |
|
|
|
56,542 |
|
Proceeds from issuance of convertible promissory notes, net of
issuance costs |
|
— |
|
|
|
49,955 |
|
|
|
8,995 |
|
Proceeds from issuance of term loan, net of issuance costs |
|
— |
|
|
|
4,927 |
|
|
|
— |
|
Proceeds from business combination and private offering, net of
issuance costs |
|
447,955 |
|
|
|
— |
|
|
|
— |
|
Repayment of term loan |
|
(5,000 |
) |
|
|
— |
|
|
|
— |
|
Proceeds from unsecured loan |
|
— |
|
|
|
3,441 |
|
|
|
— |
|
Repayment of unsecured loan |
|
— |
|
|
|
(3,441 |
) |
|
|
— |
|
Proceeds from issuance of common stock |
|
3,258 |
|
|
|
226 |
|
|
|
304 |
|
Payments for tax withholding on net settlement of equity
awards |
|
(1,799 |
) |
|
|
— |
|
|
|
— |
|
Proceeds from revolving credit facility |
|
7,934 |
|
|
|
— |
|
|
|
— |
|
Repayment of revolving credit facility |
|
(4,566 |
) |
|
|
— |
|
|
|
— |
|
Net cash provided by financing activities |
|
447,782 |
|
|
|
65,408 |
|
|
|
66,087 |
|
Effect of exchange rates on
cash |
|
(6 |
) |
|
|
13 |
|
|
|
— |
|
Net change in cash and cash
equivalents |
|
64,253 |
|
|
|
6,311 |
|
|
|
14,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
|
|
|
|
Beginning of year |
|
60,529 |
|
|
|
54,218 |
|
|
|
39,522 |
|
End of year |
$ |
124,782 |
|
|
$ |
60,529 |
|
|
$ |
54,218 |
|
Supplemental
disclosure of cash flow information |
|
|
|
|
|
Cash paid during the year
for: |
|
|
|
|
|
Interest |
$ |
348 |
|
|
$ |
92 |
|
|
$ |
— |
|
Income taxes |
$ |
70 |
|
|
$ |
8 |
|
|
$ |
58 |
|
Supplemental
disclosure of non-cash investing and financing
activities |
|
|
|
|
|
Capitalization of stock-based compensation to internally developed
software |
$ |
901 |
|
|
$ |
35 |
|
|
$ |
133 |
|
Bifurcation of derivative liabilities component of issuance of
convertible promissory notes and term loan |
$ |
— |
|
|
$ |
12,527 |
|
|
$ |
— |
|
Capitalization of transaction costs |
$ |
— |
|
|
$ |
653 |
|
|
$ |
— |
|
Accrued issuance costs |
$ |
— |
|
|
$ |
42 |
|
|
$ |
— |
|
Accrued fixed assets |
$ |
480 |
|
|
$ |
— |
|
|
$ |
— |
|
Private placement warrants received as part of business
combination |
$ |
13,872 |
|
|
$ |
— |
|
|
$ |
— |
|
Prepaid expense received as part of business combination |
$ |
510 |
|
|
$ |
— |
|
|
$ |
— |
|
Latch (NASDAQ:LTCH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Latch (NASDAQ:LTCH)
Historical Stock Chart
From Jul 2023 to Jul 2024