Latch announces further changes to improve operating efficiency
August 02 2022 - 4:00PM
Latch, Inc. (NASDAQ: LTCH), maker of LatchOS, the full-building
enterprise software-as-a-service (SaaS) platform, today announced a
plan to create further operating efficiencies, including through
the completion of an additional workforce reduction. Under this
plan, Latch will renew its focus on higher margin activities with
customers, continue to grow new high margin recurring revenue, and
more closely align its organizational structure with the size and
focus of the business.
The expected increase in operating efficiencies under this plan,
in conjunction with the changes announced in May 2022, are expected
to result in approximately $85 million to $95 million in total
annualized operating savings once fully completed. Latch estimates
annualized operating expenses and capital expenditures of $65
million to $75 million following the completion of these
changes.
The August workforce reduction impacts approximately 115 people,
or approximately 37% of Latch’s current full-time employees. The
reduction is expected to result in approximately $2.5 million to
$3.5 million of total cash restructuring and related charges
primarily related to severance and benefits costs (excluding the
impact of share-based compensation), substantially all of which is
expected to be incurred in the third quarter of 2022.
Latch’s guidance provided in its first quarter earnings release
does not reflect the changes announced today or the workforce
reduction and reorganization announced in May 2022. Accordingly,
such previous guidance should not be relied upon. Latch intends to
provide further information about these cost-savings efforts in
connection with the release of Latch’s second quarter earnings.
About Latch, Inc.
Latch makes spaces better places to live, work, and visit
through a system of software, devices, and services. For more
information, please visit https://www.latch.com.
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
Company’s future products, performance, and operations, and the
related benefits to shareholders, customers, and residents; the
impact of the 2022 workforce reductions on the Company’s business;
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
Annual Report on Form 10-K filed with the SEC on March 1, 2022, 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
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