Latch Reports Impressive Market Momentum in Q1

Rhea-AI Summary

Latch, Inc. announced strong performance for Q1 2021, with preliminary bookings projected to rise by 86-88% and net revenue expected to increase by 135-140% year-over-year. This growth is attributed to increased market demand and new product offerings, including the Latch C2 smart access device, which has already booked 20,000 units. The company is also deepening its partnerships, such as with AvalonBay, and has expanded its leadership team with key appointments. Latch aims to complete its merger with TS Innovation Acquisitions Corp. (TSIAU) in Q2 2021.

Positive

• Bookings for Q1 2021 projected to rise 86-88% YoY.
• Net revenue for Q1 2021 expected to increase 135-140% YoY.
• Latch C2 smart access device booked 20,000 units contributing to Q1 outperformance.
• Increased attach rates of non-access LatchOS software modules to 75-80% of booked units.

Negative

• None.

Latch, Inc. (“Latch” or the “Company”), maker of LatchOS, the full-building enterprise software-as-a-service (SaaS) platform, along with TS Innovation Acquisitions Corp. (NASDAQ: TSIAU) (“TSIA”), a publicly traded special purpose acquisition company sponsored by Tishman Speyer, today announced an update of recent activity.

“The first quarter was a strong start to 2021, with a sharp acceleration in bookings and net revenue demonstrating increasing market demand for our product-driven approach to helping our partners drive more revenue and realize more efficiencies from their portfolios,” said Luke Schoenfelder, Latch co-founder and CEO. “We were pleased with our ability to execute our growth strategy as planned, and believe we will see sustained growth through the remainder of 2021 due to increased investments in sales and marketing, robust new product offerings and partnerships, and the expectation of a continued macro recovery. Furthermore, we are excited about the pending merger with TS Innovation and believe we are on track to complete the proposed transaction during the second quarter of this year.”

Financial Highlights

• Preliminary bookings for Q1 2021 are expected to be up 86-88% year-over-year, up nearly 2x from full year 2020 growth rates.
• Preliminary net revenue for Q1 2021 is expected to be up 135-140% year-over-year, up 6x from full year 2020 growth rates.
• Attach rates of non-access LatchOS software modules continued to increase and represented 75-80% of booked units in the quarter, up from 44% in Q4 2020. Currently, non-access LatchOS software modules include Intercom, Smart Home, and Package Room.
• Latch’s in-period booked LTV/CAC (with hardware losses) increased an expected 40-50% in part driven by increased attach rates growing its customer lifetime value over similar acquisition costs.

Recent Business Highlights

• The Latch C2, the company’s new smart access device, which debuted in Q1 2021, has already booked 20,000 units and was a contributing driver of Q1 bookings outperformance. The Latch C2 is competitively positioned to address the retrofit market due to its low cost, long battery life, and limited infrastructure needs.
• NFC Unlock functionality on Android was deployed across our product portfolio and builds on Latch’s industry-leading variety of unlock options, furthering the value of owning the company’s full technology stack, hardware, firmware, and software, by deploying new features that add immediate value to both building owners and residents, while simultaneously deepening technology integrations with Google.
• Latch deepened its status as a trusted technology partner with AvalonBay by developing a self-service touring experience that allows prospective residents to visit Kanso Twinbrook, its newest development concept, in a safe, contactless manner, illustrating how Latch unifies software, hardware and services in one single seamless experience for customers.
• Latch continues to expand its leadership team:
  • Chris Lee joined Latch as Chief Revenue Officer. Chris’ impressive track record, along with increased investments in sales and marketing, will expand Latch’s sales capacity and position the company to sustain strong growth year-over-year.
  • Deb Josephs has joined Latch as Chief People Officer. Deb’s experience leading people operations across a diverse set of fast growing technology companies will help Latch continue to thrive as it increases headcount, expands to new verticals and geographies, and continues to redefine how people interact with their space.
  • Latch has proposed a new board of directors for the post-combination company. The new board will be comprised of an experienced group of leaders with expertise in technology, real estate, proptech, security, finance, and capital markets, and will support Latch’s robust management team in steering Latch’s continued growth, including into new verticals and geographies.

About Latch, Inc.

Latch is reimagining the modern buildings of today

FAQ

What are the projected bookings for Latch in Q1 2021?

Bookings for Q1 2021 are expected to increase by 86-88% year-over-year.

What is the expected net revenue growth for Latch in Q1 2021?

Net revenue for Q1 2021 is projected to rise by 135-140% year-over-year.

What is the significance of the Latch C2 device in Q1 2021?

The Latch C2 has already booked 20,000 units, contributing significantly to bookings outperformance.

When is Latch's merger with TS Innovation Acquisitions Corp. expected to complete?

The proposed merger with TS Innovation Acquisitions Corp. (TSIAU) is expected to complete in the second quarter of 2021.