Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. freshman Avg
|
New words:
aging, avoid, broadly, bucket, carrier, Chicago, commodity, conclusion, Constant, currency, Denver, discontinue, disposition, dispute, dwelling, elevated, Entrata, failure, fewer, foreign, fuel, geography, harm, hypothetical, implicit, inability, inflation, inflationary, intangible, lessor, metric, modification, pattern, pooled, promotional, quantity, reached, refund, relevant, repair, ROU, RSU, speculative, strive, substantive, substitution, translation, transportation, uncollectible, unpurchased, withholding
Removed:
advantage, advisory, amendment, approval, April, attestation, bear, carried, comply, convert, earliest, emerging, firm, fulfill, implementing, initially, intended, intent, Jumpstart, listed, negative, opt, recently, reconcile, record, reduced, reducing, repay, revised, Rule, standard, stockholder, subsequently, transition, volume, written
Financial report summary
?Risks
- Risks Related to our Business and Industry
- We are an early-stage company with a history of losses. We have not been profitable historically and may not achieve or maintain profitability in the future.
- Our operating results and financial condition may fluctuate from period to period.
- Our rapid growth and the quickly changing markets in which we operate make it difficult to evaluate our current business and future prospects, which may increase the risk of investing in our common stock.
- Growth may place significant demands on our management and our operational and financial infrastructure and require us to commit substantial financial, operational and technical resources to attract, service and retain an increasing number of customers. If we are unable to hire, retain, manage and motivate our employees, we may not be able to grow effectively, and our business, results of operations and financial condition could be adversely affected.
- Our future operating results will rely in part upon the successful execution of our strategic partnerships, which may not be successful. If these companies choose not to partner with us, our business and results of operations may be harmed.
- If our security controls are breached or unauthorized, or inadvertent access to customer information or other data or to control or view systems are otherwise obtained, our products, software or services may be perceived as insecure, our business may be harmed, and we may incur significant liabilities.
- Our integrated direct selling and deployment strategy may subject us to additional risks.
- We may be unable to attract new customers and maintain customer satisfaction with current customers, which could have an adverse effect on our business and rate of growth.
- We rely on certain third-party providers of licensed software and services that are important to the operation of our business.
- We rely on our channel partner network to sell and deploy our products, and the inability of our channel partners to effectively perform to our standards, or the loss of key channel partners, could adversely affect our operating results.
- Potential customer turnover in the future, or costs we incur to retain and upsell our customers, could materially and adversely affect our financial performance.
- If we are unable to develop new solutions, adapt to technological change, sell our software, services and products into new markets or further penetrate our existing markets, our revenue may not grow as expected.
- We operate in the emerging and evolving smart building technology industry, which may develop more slowly or differently than we expect. If the smart building technology industry does not grow as we expect, or if we cannot expand our platforms and solutions to meet the demands of this market, our revenue may decline, fail to grow or fail to grow at an accelerated rate, and we may incur operating losses.
- We are in the process of expanding our international operations, which exposes us to significant risks.
- The markets in which we participate could become more competitive and many companies, including large technology companies, point solution providers such as traditional lock companies and other managed service providers, may target the markets in which we do business, including the smart building technology industry. If we are unable to compete effectively with these potential competitors, our sales and profitability could be adversely affected.
- We identified material weaknesses in our internal control over financial reporting which, if not corrected, could affect the reliability of our consolidated financial statements and have other adverse consequences.
- We may expand through acquisitions of, or investments in, other companies, each of which may divert our management’s attention, result in additional dilution to our stockholders, increase expenses, disrupt our operations and harm our results of operations.
- Customers may choose to adopt point products that provide control of discrete functions rather than adopting our integrated LatchOS platform. If we are unable to increase market awareness of the benefits of our unified solutions, our revenue may not continue to grow, or it may decline.
- Changes in effective tax rates, or adverse outcomes resulting from examination of our income or other tax returns, could adversely affect our results of operations and financial condition.
- We may be unable to use some or all of our net operating loss carryforwards, which could materially and adversely affect our reported financial condition and results of operations.
- We may require additional capital to pursue our business objectives and to respond to business opportunities, challenges or unforeseen circumstances. If capital is not available to us, our business, results of operations and financial condition may be adversely affected.
- We must successfully upgrade and maintain our information technology systems.
- If we are unable to acquire necessary intellectual property or adequately protect our intellectual property, we could be competitively disadvantaged.
- Accusations of infringement of third-party intellectual property rights could materially and adversely affect our business.
- Our products and services may be affected from time to time by design and manufacturing defects that could adversely affect our business and result in harm to our reputation.
- Our new software, services and products may not be successful.
- If we fail to continue to develop our brand or our reputation is harmed, our business may suffer.
- Our applications run on mobile operating systems, networks and devices that we do not control.
- Potential problems with our information systems, third-party systems and infrastructure that we rely on could interfere with our business and operations.
- We collect, store, process and use personal information and other customer data, which subjects us to legal obligations and laws and regulations related to security and privacy, and any actual or perceived failure to meet those obligations could harm our business.
- We rely on a limited number of suppliers, manufacturers and logistics partners for our products. A loss of any of these partners could negatively affect our business.
- We have limited control over our suppliers, manufacturers and logistics partners, which may subject us to significant risks, including the potential inability to produce or obtain quality products and services on a timely basis or in sufficient quantity.
- Increases in component costs, long lead times, supply shortages and changes, labor shortages and construction delays could disrupt our supply chain and operations and have an adverse effect on our business, financial condition and operating results.
- Some of our products and services contain open source software, which may pose particular risks to our proprietary software, technologies, products and services in a manner that could harm our business.
- From time to time, we may be subject to legal proceedings, regulatory disputes and governmental inquiries that could cause us to incur significant expenses, divert our management’s attention and materially harm our business, financial condition and operating results.
- The COVID-19 pandemic could have an adverse effect on our business, results of operations and financial condition.
- Our smart building technology is subject to varying state and local regulations, which may be updated from time to time.
- We may fail to comply with import and export, bribery and money laundering laws, regulations and controls.
- Our operating results could be adversely affected if we are unable to accurately forecast customer demand for our products and services and adequately manage our inventory.
- If we are unable to sustain pricing levels for our software, services and products, our business could be adversely affected.
- Insurance policies may not cover all of our operating risks, and a casualty loss beyond the limits of our coverage could negatively impact our business.
- Downturns in general economic and market conditions and reductions in spending may reduce demand for our software, services and products, which could harm our revenue, results of operations and cash flows.
- We may face exposure to foreign currency exchange rate fluctuations.
- Our private placement warrants are accounted for as liabilities, and the changes in value of our warrants could have a material effect on our financial results.
- Our common stock price may be volatile or may decline regardless of our operating performance. You may lose some or all of your investment.
- We do not intend to pay dividends on our common stock for the foreseeable future.
- Our issuance of additional shares of common stock or convertible securities could make it difficult for another company to acquire us, may dilute your ownership of us and could adversely affect our stock price.
- Future sales, or the perception of future sales, of our common stock by us or our existing stockholders in the public market could cause the market price for our common stock to decline.
- Our management has limited experience in operating a public company.
- Anti-takeover provisions in our governing documents and under Delaware law could make an acquisition of us more difficult, limit attempts by our stockholders to replace or remove our current management and limit the market price of our common stock.
- Our Charter and Bylaws provide that the Court of Chancery of the State of Delaware is the sole and exclusive forum for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.
- Climate change and related environmental issues may have an adverse effect on our business, financial condition and operating results.
- Our business is subject to the risk of earthquakes, fires, power outages, floods and other catastrophic events, and to interruption by man-made problems such as terrorism.
- The requirements of being a public company may strain our resources, divert management’s attention and affect our ability to attract and retain senior management and qualified board members.
- If securities analysts do not publish research or reports about us, or if they issue unfavorable commentary about us or our industry or downgrade our common stock, the price of our common stock could decline.
Management Discussion
- Revenue increased $23.3 million driven by an $18.9 million increase in hardware and other related revenue and a $4.4 million increase in software revenue. We experienced delays in unit deliveries in the first half of 2020 as a result of the impact of COVID-19 on the residential multi-family construction market, but as the construction market and economy began to improve, hardware unit deliveries started increasing during the third quarter of 2020. The 132% hardware and other related revenue growth is also attributable to accelerated demand, including for new 2021 product releases such as C2, Latch Intercom and third-party smart home devices as well as our new professional services offerings. The software revenue growth of 117% reflects the continued growth in the home units install base as a result of the hardware units delivered in 2020 and 2021.