Latch, Inc. (LTCH)·Q3 2024 Earnings Summary

Executive Summary

• Q3 2024 revenue was $14.94M, up from $9.67M in Q3 2023, while net loss narrowed to $(17.06)M from $(27.28)M; basic/diluted loss per share was $(0.11) .
• Sequentially, losses improved versus Q2 2024 (net loss $(16.94)M, loss per share $(0.11)) amid continued operating discipline .
• The company did not file an 8‑K 2.02 or host a Q3 earnings call; it notified the SEC of late filing for Q3 (NT 10‑Q) and continued restatement/remediation efforts .
• Leadership transition and product/brand initiatives were highlighted around the period: Jamie Siminoff moving to advisory role (Doorman) and continued execution under the DOOR brand, positioned as catalysts for narrative and strategy .

What Went Well and What Went Wrong

What Went Well

• Strong YoY revenue growth: Q3 2024 revenue rose to $14.94M from $9.67M in Q3 2023 as the company expanded offerings and execution under DOOR .
• Management emphasized operational discipline and efficiency, with the St. Louis HQ anchoring the execution strategy: “With a continued focus on operational discipline and efficiency, the company will be executing its strategy from its headquarters in St. Louis.” .
• Product and platform expansion under DOOR: The company launched the DOOR app and introduced IoT hardware (M3 Retrofit Lock, R2 Retrofit Kit, smart sensors), and acquired HelloTech to strengthen last-mile installation/service capabilities .

What Went Wrong

• Reporting delays persisted; Latch filed an NT 10‑Q indicating inability to timely file Q3 2024 due to ongoing restatement and remediation work, which limited disclosure cadence and investor visibility .
• Legal overhang: proposed class action settlements (e.g., $1.95M each for Brennan and Schwartz matters, subject to court approval) and a larger fiduciary litigation settlement ($29.75M, with Latch’s expected share $14.875M before insurer contribution) underscored continued non‑ordinary legal costs .
• No Q3 earnings call transcript or 8-K 2.02 press release; investor communication for the quarter relied on subsequent filings and press updates rather than typical earnings-day materials .

Financial Results

Notes:

• Q3 2024 YoY comparison: revenue rose from $9.67M to $14.94M, loss per share improved to $(0.11) .
• Nine-month 2024 totals: revenue $39.92M; net loss $(47.63)M .

Segment breakdown and KPIs:

• The company’s disclosures commonly categorize revenue into hardware, software, and services; Q2 MD&A noted increases across hardware (+$1.3M), professional services (+$0.8M), and software (+$0.6M) but did not present Q3 category totals in sources reviewed .

Guidance Changes

• No formal revenue/EPS/margin guidance was found in Q3 2024 materials, and no 8‑K 2.02 guidance update was filed in the period .

Earnings Call Themes & Trends

Management Commentary

• “With a continued focus on operational discipline and efficiency, the company will be executing its strategy from its headquarters in St. Louis.”
• “We have invented around the future of multifamily property management… introducing innovative new products, and launching the DOOR brand and app to expand the possibilities of what Latch can do.”
• Restatement milestone: “The completion of the restatement and the filing of the associated reports with the SEC are major milestones… The Company… expects to make [2023 filings] in the first quarter of 2025.”

Q&A Highlights

• No Q3 2024 earnings call transcript was found; therefore, no Q&A highlights or in‑call guidance clarifications were available .

Estimates Context

• S&P Global consensus estimates (EPS and revenue) for Q3 2024 were unavailable through our tool due to missing CIQ mapping; we attempted retrieval but could not access consensus via S&P Global. As such, we cannot present a vs. consensus comparison for Q3 2024 [GetEstimates error; internal tool logs].

Key Takeaways for Investors

• Revenue momentum: Q3 revenue growth to $14.94M (from $9.67M YoY) shows demand traction and broader contribution from hardware, software, and services; monitor whether Q4 and FY 2024 filings confirm sustained sequential growth .
• Communication cadence: Absence of the standard 8‑K 2.02 and earnings call for Q3 underscores reliance on subsequent filings/press releases; NT 10‑Q confirms restatement-driven timing constraints .
• Legal overhang: Proposed settlements (subject to court approval) and ongoing SEC-related matters imply continued non‑ordinary legal expense near‑term; watch insurer recovery and cash flow impacts .
• Strategy execution: DOOR brand, AI “Doorman,” and IoT portfolio expansion, plus HelloTech integration, position the company to broaden monetization across property technology/services—focus on software attach and service margin uplift .
• Operational discipline: St. Louis HQ build-out and leadership changes (e.g., Siminoff to advisory role; continuing management team) support centralized execution—track opex trends and unit economics as filings resume .
• Near-term trading: Catalysts include progress to current SEC status and clarity on 2024/2025 performance via filed 10‑Qs/10‑K; risks relate to legal settlements, timing of filings, and lack of traditional earnings-day communication .

Sources Read and Search Notes

• We searched for an 8‑K 2.02 press release and a Q3 2024 earnings call transcript; none were found for Q3 2024 in the document catalog. We read:
  • 8‑K and exhibit press release on restatement progress (Dec 20, 2024) .
  • NT 10‑Q for Q3 2024 late filing notice (Nov 15, 2024) .
  • 8‑K and press release regarding management transition (Nov 19, 2024) .
• For quantitative results, we used third‑party news aggregations summarizing the company’s Q1–Q3 2024 filings:
  • Q3 2024: revenue/net loss/EPS .
  • Q2 2024: net loss and loss per share; revenue context .
  • Q2 revenue: $12.94M (event tracking site) .
  • Q1 2024: revenue/net loss .
• S&P Global consensus retrieval was attempted but unavailable via our tool owing to missing CIQ mapping (cannot present vs. consensus).