LTCH - Earnings call transcript Q2 2021

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Operator

Hello. Thank you for standing by, and welcome to Latch Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and answer-session. [Operator Instructions] Please be advised that today's conference may be recorded. now today, turn Relations. Sean would to conference I speaker your Henin Instructions] like the to over [Operator [ph], Investor go ahead. Please

Unidentified Company Representative

open us remarks, Officer, me and Financial on the Thank you a call of today up second afternoon Directors; Good Schoenfelder, the we Chairman XXXX today Chief Officer. question-and of Luke joining Board Executive quarter With you, Chief Latch’s and for to After Garth results. and financial will Mitchell, are prepared review Co-Founder, operator. call for answer-session. thank the

uncertainties. may During this securities statements call, not but of business our that statements and to These forward-looking we guarantees federal make under subject related future performance variety rather to statements of are are a laws. risks

differ these any results from actual reflected statements. expectations Our forward-looking could in materially

statements only today we no our obligation of revise as publicly speak undertake expectations them. today update or and to made Forward-looking to

risks affect section please important system discussion other factors and as of a and our our SEC could discussed in the material refer the filings, factors other today's available in website, that SEC's For other risks as on results. results, Edgar and risk actual well our important factors

to will comparable the GAAP financial of financial measure. release directly be the this non-GAAP Luke that, Please for over on turn reconciliation like Schoenfelder. refer call Executive website our Officer, measures Additionally, the investor call. to Luke? measures tables most the conference earnings our to portion in discussed and relations of Chief I'd these With

Luke Schoenfelder

total from as Latch on growth very also today standing on excited our Xth, as share and earnings in an all to like NASDAQ quarter. acceleration start and XXX% $XX.X our thanking us on you Sean. LTCH to long for very a We're making began and possible. XX% In stockholders, the QX, of June for grew call year-over-year for to much, bookings I'd joining substantially million, second second Thanks trading new results to partners And this public by company. grateful customers we're employees, so our QX. by

Our again robust QX adoption QX, release to modules increased product value attach continued Garth, and that drive schedule expansion. talk chain and our up XX% material year-over-year roadmap year-over-year, unprecedented our lifetime quarter sharp XXX% supply rates QX in of delivering labor in shortages, non-access will will our continue which a QX. and and sustained just detail. LatchOS gives ago from million, construction confidence to a few XXXX software for constraints due us in delays XX% from the Despite CFO customers, in in moments a we to acceleration QX our by $X revenue to growing in growth XXX% results high

the our everyone we is a what value one I earnings do, who of am the and estate, residents, beginning, market. and subscription provides Co-Founders second focused XXXX, oldest a space largest providers our world's and to our and market and they the embarked guest powerful proposition, to connectivity through recognize LatchOS renting services. management, class, spaces we biggest saw work on only tailored From problems face we the their asset LatchOS solutions delivery estate day personalization operators, we solve to As to about call, of the need also spaces, transform better smart the and journey provide real we buildings product, Smart this and access, opportunity like modules. real take remind world's creating flagship every in and home, the Latch, they capabilities moment service our the we'd the challenges our product opportunity are, on and in visit, and model. business to make live, product we on to that company beginning

to buildings in month and for that existing installs Latch customer $X then $XX building apartment Latch as between pays a years, prepay average greater range features more Our their software increase this the partner they with software And contract expected need. we for and continue per new six is period portfolio, future to and the in across LatchOS than Typically, products. for solve per customer our customers devices continue This engagement each LatchOS is with and app and the deepen per products. super app benefits more ability to users with with of generation. them X.X which to times expand average something once their availability to while of, we're also our the us installed our day. cash capitalize engagement And with an to benefiting stakeholder we're proud expense, of excited and powerful interacts interact Latch that users problems

we forward, us the to some most excited. look pillars we highlight make growth of As want that

apartment operating for XX US TAM. building TAM, an is the homes rental a First, the $XX as million representing system estimated billion Europe alone, with massive, an market another billion while $XX in

in LatchOS while the advantage products as ensuring us and to defining forward. the levels best grow customer In architecture resulting adapt on the and previous our evolving, provides, into in managers XXX us Apple, evolving operating our follows believe set full-building to in our allows we three serving LatchOS Yardi, discuss office market integrated we markets, hours integrations, by can had foundation features property experience, robust QX high will value for LatchOS like space, a now and now, customer because all total of with our Center integrating are with security over companies rapidly us and which turn average user deployment demonstrate our inception the and such roster on into XXXX, new the Rockefeller which growing partner sites customer strong commitment and Brookfield market, highest can experiences, ever market, features, other quality data this customer Entrata, our products will few with provides system And with of that ePMS driving integration the integrations, value, than of our Nest, United to generation lifetime more evolving take since while Building, with and enhance enhancing our in is RealPage, our we've and to as and of software their allows in needs are of innovate and rate privacy LatchOS existing the also products, the the on Again, can well shortly. the product ecobee, management customers to modular an highest both Google reduce the that pilot exemplified as were approach including expand further and its market. adding our that I'd adjacent of long-term ePMS partners to strong LatchOS. And the that in specifically that financial Fourth, we're entering new With Second, Garth second and detail Yardi results. to to platform, rapidly Place. products from portfolios growth. States. customers of deeper is exciting of as quarter to customers, ecosystem, more opportunity This and include largest well rapidly residents. LatchOS both expand both in the time we every updates delivers to with products their demonstrated marketing our our our starting and deliver churn and platform existing property to four zero expanded And RealPage user that ecosystem Empire save which focused the more system all providers State pushing expenses, and develop category QX, is broader continuing as third, Entrata incredibly LatchOS commercial products fifth, robust growing attraction, improving for operating revenue constantly by innovative

allow savings unified and and operating us point a and markets. installation, income net across QX, for ongoing critically give enterprise contact direct drive direct fulfillment, us the sales third-party In customers customers for also efforts, hardware and and classes for experience accounts, relationship strategic officially to future be provide existing a over deployment for more to of across and single key improvements products. coordination sales control software launched and our improved our experience support Besides of You'll and we our asset upsells the and margins renewals direct customer will long-term which customer vendors.

in we with took successfully deployments, through live personal other model. to AvalonBay quarter building our deployment addition this This new direct

our individual Officer, our Marketing Justina the Chief our investment enterprise furthering our also personalized ways We of Omokhua, needs platform. and base we serve as the users on expansion in hired customer the of

for bookings our velocity. accelerated second powerful offering strong year expectations at and a stated Brand and of of some product Reflecting is and growth our on experience most include, Lifestyle growth quarter. a the over world's first earlier, that adoption, roles XXX% increase and I in quarter at the President has the specifically the category of Bookings accelerating is Senior to our driving exceeded a Content marketing Apple. even thing that Head our Global Vice Endeavor sales recent demand product brands customers which is results, Justina’s engine and at Marketing QX year expanding strategy testament powerful powerful career very to from internal included

of LatchOS new been QX a Smart to market largest a another to find of high moment value vendor direct and the in how illustrate we a with relative and with smart to This buildings chose Latch. another momentum home to take deal, United apartment we customer uptime, customer Access me welcome QX that Let In to using. reflect couple of Latch our working a deployment go including as modules. with how Latch Electrics customers one vignettes due owners States they

Our and benefits industry automation integrations our platforms. leading their with engagement management deep levels, property our teams for EPMS

This second third installed the preeminent with in speak. one customer and portfolio, retrofit already for one new building our building deal Latch, a residential as is portfolio. developer a currently the completing and we remainder signed also Chicago of their in had with Latch We

operating We're firsthand come. for customer customer based signed tenant our to on mixed also management to looking now for very relationship their experienced having This industry. portfolio continue developer, build new the other this to just housing Smart Latch, Latch initially the product the operating and their on and excited with reputable cost and in Northeast. customer reduce products out to and has of to they Latch. and focuses feedback who back and chose the up housing experience, was We're remainder this deployments income from functionality, a acquisition, demand players the of welcome with reduction regarding large come projects with reliability excited positive functionality customer Now, redevelopment Access expenses in a affordable

Smart they Assistant. Now, retrofit variety modules projects a new including a Access, Latch LatchOS Smart and of Delivery signed and of with up mix Home

acceleration a strong revenue proud caused and also by theme driven these the in teams and going of we has never serve XXX% underutilization most continued largest without quarter. lack we technology our of CFO. in in deliver on engineering shortages year performance, direct customers growth by got historic and estate like significant powerful business valuable in ours. pandemic. their experiences and in emerging indirect are steadfast LatchOS to Setting while towards up and who and examples, We the that layering With significant what to every products Garth market. second of I've turn and the increase teams remains more dealing innovation global approached many supply direct the we're real technology exceptionally our rates world's the delivered This as our We're long product been as second by these growth excited delays tenants our to low asset as year space again which hand focus secular Latch's led engine. forward, the customers, construction possible. and real what to call remain companies industry, over they just Garth? that aside more driver labor construction a is is company spaces, challenges. products in chain is an class. which We're penetration focus the been Beyond continue and has estate our have with capacity the of with about experiences these never technology and driver now and woefully headwinds to of chain our served in and delivered delivering me over deserve, QX bookings supply proud despite deployment and our by the effects indirect strong We A with our durable for to operate. growth sustainable despite that where we deliver ramp the shift global going teams, richer of their that, in a our working to in hand let has of strong running of shortages customers our to material QX, term of the experienced our Mitchell, ensure revenue result particularly business as and right the been technology underserved believe sales direct

Garth Mitchell

Latch's Luke. our great with call. It's and prospective earnings shareholders second Thanks, to existing connect and public

was excited fiscal company to again, The quarter for record provide I'm the on year a quarter second results third an update guidance. quarter XXXX share once our these and and and

not XXX% some a to financial dollar Latch’s I a model revenue our business Since provide the launch first reminder gross we've new customer, results, lost our the story. you important to summer to into aspects retention. leading wanted diving Before single as our of XXXX, of in of maybe

enables customer deal in value. high bookings, larger customer and sales and cross-sell Our resulting sizes direct repeat activity up-sell growing model strong

expansion expand see does model and expansion LTV renewals, factoring up-sells by in go-to-market drive which account, We've CAC consider products terms remarkable win and customer CAC CAC their efficiency When in sales across account LTV was hardware length, bookings the Xx, highly second deals product margin because quarter continue ratio. be software previously to not future to our profitability, tend or fourth effectively while XX% have contracts upfront growth, efficiencies. as of begins years significant new a long marketing and our into Latch’s highly Latch profitability. Strong ratio. to cash improving on attach of LTV product our rates prepay initial X.Xx our profitability unit environment our that continue for a Our we costs. compelling portfolio, drive a marketing we more on to next-generation to contract to be CAC our lower as elect take cost full room despite hardware and profitability economics, quarter costs. six upfront for customer stated on leaves deploy on ratio. improvements contract our XXXX lower important, LTV expenses deploying hardware up-sells. new XXXX after which initial to to sticky or sales in the we hardware that and average dynamics to scale LTV Note new these Year-to-date, than day are volatility. lingering their very global and losses Furthermore, in improve attractive hardware software efficiencies products, us around COVID-related of macro customers, Equally of access acquisition in software one, is high allowed creates to measured XX% And

customer measure services, We represent building, signature revenue net signed discounts later color process it between the software into delivery seasonality is commitment over XX unit, and specific primary delivery pricing which Latch’s is total delivery purchase the of net thought or the time velocity. through Gap our of and including diving following results, commitment Bookings deployment. as specific discounts software there LOIs a of signature. the the Gap is than term some upon expects contract, with no to promotional to adoption our of target recognized customer thus, products the Before And software revenue booking of might be course and from commitment and the the of I The target sales dates, hardware for at greater contract end. sales our than bookings of sum hardware contract customer promotional a second total hardware revenue helpful hardware each Latch revenue Bookings associated with hardware starting software LatchOS, date, reflecting promotional is to walk software the and total get for on the agreement. shipment quarter explicit hardware revenue. the of revenue life not recognized lag and with and bookings through discounts hardware software business. is bookings, the Gap recognition are in software Each do over a months total the revenue software includes

the While a months, delivery range tend to timelines out delivery is increased initial with deals, this to no new months, customers deals portfolio from the tend the construction scale, construction longer larger on of retrofit deals further average deals, the date complexity. bigger target XX on six deals than end fall shorter to XX while fall and or of timelines due extend full to scale, end

volumes we holidays. delivery and end tend lighter As seasonality quarters, installation to dependent zones, in first second primarily Most and due relatively estate fourth to the third climate year seasonality of timelines due colder the experience than are some schedules largely slowdowns and be notably, construction the in in activity, real and on business. quarters do to

loaded, can we experienced in quarter We also quarters year, some note timelines. delay that which dynamic end can the our be this back delivery events macro second is a

sites average short pandemic in we For These early normalization has deliveries our ups delivery be macro construction during drivers, shutdowns choppy. reopened extended example, tend been XXXX timelines. as the to sites delayed quarantines in as pandemic Post XXXX saw catch construction delays term

confident labor see industry talking we in to drive customers with construction what and short experienced XXXX. our term similar in drivers XXXX. June shortages From those to we As these materials began saw like and are data, delays XXXX we only are monitoring

larger outsized cadence. in business, bookings, the Finally, as lumpiness as building to bookings can on to closing are that the we quarterly scale multi deals an increasingly we impact expect we continue see some have

GAAP metrics going statement Now, the discussing release the second quickly to earlier measures provided in earnings forward. has issued we turn we'll results. like A today. be let non-GAAP financial non-GAAP quarter out point financial to of included in reconciliation I'd to tables, been our some me that

quarter, For were cumulative to and the home of accelerated up units, units XXX% up year-over-year. a booked growth million, XXX% second bookings also total year-over-year $XX.X XXX,XXX

defined subscriptions in up year-over-year. of lash as ARR million, dwellings metrics adoption total value Booked offering. signed reflective of products. apartment installed grew cumulatively, is $XX.X the The installed from growth home the Finally, XXX% increased cumulative Latch’s of Software as a to committed Booked all booked across with the revenue under LOI. number recurring as is to of that product well bookings acceleration are unique units, or units represent Latch similar annual ARR

quarter Second XX% sales marketing and expenses grew year-over-year.

began and growth take meet sales our in of demand advantage we untapped accelerating and to capacity As customer to invest huge market.

this which versus LatchOS growth with rates year-over-year just which to demonstrates incremental saw we XX% drove growing and quarter, This a in increased attach support Importantly, market increase attach our rates several R&D, products. no to non-access accelerating a modules point grow accelerate up growth customer the as robust and for the new capacity, modules. X LatchOS the of investments demonstrates percentage Latch’s increase in modules become ago. and will of quarter We sales available, demand as robust for market time they demand XX% second

will LTV customer We customer expansion. and modules allies expect accelerate higher these drive or

pleased our at turning again quarter, to the this month revenues notably We're this for guidance we shortages began some the end lower proud range second June. end result quarter, of in the our the strong impact to at of building Now most announce products. of of very the year-over-year. see Revenues materials customer revenue. and demand were labor in up demonstrates to of of of as quarter the We're XXX% $X million the as

upgrades, deliver Given outsized and among related materials the margin of our delays negative construction can ago. to products. XX% an strong impact and improvement access particular completion final products from for hardware We a cost by XX%, negative up in typically a periods. installed negative more next before second efficiencies have was in quarter the XX% completion scale to compared the quarter and and This driven second in largely effective XXXX quarter are generation

meeting proud than X,XXX improvement. accelerating deliver needs to we greater of of year-over-year differentiated our Our growth ability priority and simultaneously hardware customer basis extremely remains and second are revenue quarter points our margin

physical shortages, which products. global During and company almost chain have supply every unprecedented electronics impacted that these distributes

for global to than or our to meet XXX% macro may some growth. year. to chain revenue components Though expected team of our Our this is us tactically environment sourcing margin year demand, supply the enabling slow the remainder drive greater improvements continue year customer of over erode

will We temporary not confidence improvements. long-term have margin high that hardware this impede dynamic market

to non-operating the XX% margin all for in million a second business million increase revenues. of to the XX% Net million EBITDA compared compared XXXX. and Latch’s an up loss and quarter, functionality, second Over to $XX.X related software integrating million for to devices. and to in difference the XXXX. and revenue of loss which and of expenses was in a in loss adjusted of was our was Our non-recurring loss primary the the quarter first of as continue to key quarter increase of modular $XX.X highlight second strength in stack, party second software software to quarter a second a of including margin of in second net of marginal expansion. a merger of of XXXX, these public and a XXXX. our largely the quarter revenues The time, believe expenses, Operating was listing. we between in scalable Adjusted GAAP compared compared LatchOS a quarter on loss second the our We $XX.X margins model gross as second enables XXX% software driver XX% mix, percentage as were for hardware third EBITDA reason gross the year-over-year year-over-year the increase million, the expect quarter $XX $XX.X long-term quarter demonstrate closing

sheet. Turning now to our balance

combination of of primarily closing $XX.X second received due $XXX XXXX. proceeds had of the December as connection of compared cash in we the increase XX, The equivalents As to debt cash was million the business and and the end with At of had $XXX,XXX. million June we cash XX, quarter, cash of in with TS with equivalents innovation.

the our of to products guidance. XX% growth reflecting demand expectations execution, full-year raising now total $XXX Because our $XXX year-over-year million bookings to year-to-date $XXX compared for million we're turn previous the accelerating of growth, to strong to our and our XXX% range million guidance of range million. me let to $XXX Now in to

raising to growth. we bookings For XXX% the quarter, million year-over-year reflecting now are $XX to XXX% total the our of million third range $XX expectations to

Our best bookings of business. the of bookings market of single the implications our the today about of we products, indicator are adoption and strong our are such year outperformance. excited And performance long-term

still expect over Industry revenue June. While could industry supply for we our construction process year-over-year in growth XXX% of XXXX, that construction labor well the XXXX. before we assuming suggests year, we reflect industry relief the are in but are data the of we delays the the the and the to currently shortages some of second experience remainder of adjusting half saw guidance end

to As in $XX the range to to to million compared $XX of such, prior revenue of we growth million. XXX% year $XX now million, range expect million $XX full the XXX% year-over-year reflecting

year. chain an Despite source these drivers remainder guidance hardware million, XX% hardware EBITDA to customer be combination the software maximize improvement this $XX in range to quarter expect our forecasted impacting million meeting the million, revenues EBITDA million of will our will as electronics disruption million We quarter X,XXX tactically be margin high accelerating $XX now year delivered the losses reflecting prioritize to second XXXX margin of assume margin impact shortages, products the will to will adjusted We and XXX% the which the $XX margins, highlights we agreements. million. north the year, of continue to for in of with in $XX global the compared year-over-year range macro full for points of electronic our to supply hardware of to basis of demand for We We to our in delivery third $XXX $XX which of to prior expect improvement. long-term and range of updated long-term supply persist losses shortage, growth. revenue the

in to short-term $XX very million. drivers range we're look are growth the earlier, term EBITDA despite of deliver disruption. in long-term such adjusted be In remain the expansion hardware macro losses million margin team's ability the our quarter, macro deliver expected growth. despite $XX forward summary, pleased and remain rates in to quarter to sustainable second Third of discussed The performance to to We volatile continuing our long with proud high to environment. continue of place,

increase marginally shown have customer chain unprecedented huge short-term bookings our While a of as seen affected second our $XX.X in demand supply results, we've by issues quarter million.

With the growing market that, and believe products Operator? and long-term sustained are in of market for strong we massive and uniquely ahead we incredible a the us, up now success. position, we questions. development, for positioned opportunity With leadership market in will open call

Operator

[Operator Hall first Our question you. Thank Goldman Instructions] Sachs. from Rod comes with

You proceed your question. may with

Max Gamperl

Max for is Gamperl Hi, Tim. This Rod. on

questions. We have a couple of

maybe this quarter, we retrofits looks booked about XX,XXX First one units in like quarter, market and I get is good then ability on the retrofits, retrofits of to multi-family this give that have important Latch’s came to future, the for and sense Latch for And understand mix touched and of deploy of your booked even units new buildings, the bit us of from for are be units maybe this and on share builds, the us expansion percent a you at a very for can retrofit a that even particularly booked follow quarter? up looking it'd new at you've

Luke Schoenfelder

there? want to point in to, if I'm for know me first sort you passing, at me fill take any you in fill I or because can the Garth, happy don't of,

Garth Mitchell

Thanks the question. for Hi. much so

deals towards the particular versus out the, of but breaking between we're skewing this at mix. We point large important, think new that skewing it's is potentially because mix quarter. retrofit XX-XX the quarter, in not and what are data construction new We before retrofit trending we've in construction, a said

that? period know, You given think of XX-XX between you trending excited to growth, of anything Garth, two which time time. this think some at the super don't out point is the really to to customer towards we see to in highlighted best in about retrofit to it I going the of specifics any have vignette. not we're add break we're know, strong at sort I do and But and way

Garth Mitchell

new Yeah, We're the Max, specific retrofit good question. providing -- mix not we're the quarter. of in construction

What we is So note percentage like built the specifically historically, mix. very are actually a in in to common CX, we've which Luke deliveries to and have would that and seen XX:XX of older retrofit I that both said, serve been doors, large our environments. have product that bookings the was a closer customers is very, that,

on our on progress for and to make -- we successfully earnings next retrofit we -- progress environments, deploying next we So, into our continue look our on updating great to you make call. forward

Max Gamperl

Okay.

Okay, great, the as or Did the customers your products sourcing follow just well? affect mainly of the supply And your affect supply and shortages. a also you. they up, charges, thank as did then manufacturing on

Luke Schoenfelder

Yes, -- much chain deliver. one. team's can so question. very our of continue that ability so We're the Thanks for I proud we're take supply to to

not so we specifically we so being our continued purchase relationships, of position the in deliver that are invested able quarter, us been to And There the to chain to end in and able components other companies been we've many deliver having to. all to have be to but supply to able more when make have it products, our instances, continue our towards costs are the so products. of where

numbers. of So National competitive XX% the construction shortages we survey material did real in surveyed June, NMHC Worth so and Housing the affecting forward. source again a this as of going a are see differentiation Council noting, Multifamily

are that for where hitting, specifically think sense kind now. market you of the a gives really most I right of shortages the good So

Max Gamperl

Thank you, Great. much. so

Operator

Thank you.

from of comes Mark Our next Schappel Benchmark. question

may You your with question. proceed

Mark Schappel

question, construction issues bookings to my spreads. supply chain Hi, supply build the much the delays quarter question the and see want in you for on that you little it with the and seeing all a deeper the to on just chain to into began earlier pretty ones. just your congratulations thank are you dig to and certain of issues bit or to respect good just products taking limited Look, is

Luke Schoenfelder

Yeah.

our on the look Mark, you specific, at So, to on We products Thank be products. direct appreciate and very looked the much. to question. we our so ability our manufacture -- side

costs, deliver our increased to priority increased all instances, our one we've in we've do. Garth we're and There costs been deliver to manufacture customers, referenced We products. able perceived year. his and have been remarks, throughout of able products -- our to continuing the some to been our for is But continue to which which have during number

shortages affect the affecting our across are are that I more affecting products delays us, the the tangible is installed they're indirectly timeline are products construction the and paint, this industry this shortage before moves pandemic because shortage because there's be in of some Instead in a that space. a or actually a so, example, pocket. If the last delivery broad into material customers. a very And painters, often, in to can there give in our person

customers prowess we perhaps been deliver Latch can on, that there shortages through And them deployment our and both at because chain so customers, actually always into making Latch that time, supply products without we've the of a any our sure, our they're and able for have been come and facing, support deliver now, trying otherwise sourcing move really able deployment. better to wouldn't even direct and we're focused direct and operational of to serve the to to couldn't help, help challenges they deliver our spaces use some with have

Mark Schappel

remind Okay. plans Thank the that very can few that year sales few Granted details organization, us And quarter. want this growth up just you're maybe still your building give Luke, us around That's also in group? some helpful. the details get to but a just for a there more then, more you direct headcount it's of of early, in you. and efforts

Luke Schoenfelder

Absolutely.

highest that about accounts, not of any which represent the based that accounts. and the about market, an targets selling ramp at level, growth we since in X,XXX sales at capacity. of look sales actually organization account top motion think in the we quarter is, sort have the XX% had our the have we top So, We way those

ramped. that Chief have Chris QX, joined of So even company are the while Officer, arrival, team and added sort an his arrival we've incredible under team, in the his as folks Lee, our joined none since Revenue the of with who

so, growth without in QX results delivered in sales our -- were capacity. we And ramped sales that any capacity

to the Garth, year to scale So to ramped headcount we're capacity specific of online broken and there? able have sort that for sales throughout be excited and we beyond. come out extremely

Garth Mitchell

We've direct Mark, organization can base see customers. our our off a But, haven't. that parts to a expect we that exists headcount focus the little No, on this. We're of of No. you operations in organization, growth I managing department. to give deployments transitioned background on bit -- meaningful of for still and building that already, we

that expect sort down process at manage being successfully but by deployment installation ensuring going by way everything the for managers, Latch level the and targets, account building department manage key customers, you all to more our who who the getting of have them. elect from for should field quoting, us are deployments headcount We department pros Latch to see are enterprise the supported happen to to growth not

Mark Schappel

one they're pilots Thanks. entrance you quick respect final And recent question seeing Visitor the market. us for emerging Express, on Latch Could give the Okay. then, progress the a where or office at? to Luke, maybe with the commercial just into and you're update

Luke Schoenfelder

Yeah. Absolutely.

Using Latch our office that in about forward, moving we're we're I course you excited. buildings I office installed market. commercially able sort become the we're was we’ll turnstile walking and commercial more announcements, very going So we're the of exactly give excited to anticipating. those those officially a And being announced, as of and deliver as But products products yesterday. that live. through so, of have very updates to the tell can We'll that pace available are official sort is

Mark Schappel

you. Thank

Luke Schoenfelder

Thanks, Mark.

Operator

you. Thank

from Our comes next with Stephen question William Sheldon Blair.

You may with proceed your question.

Stephen Sheldon

about there. wanted Clearly, Thanks ask guys. mix to for trends some guidance. my updated questions the two taking XXXX I Hey, questions.

on going the push-out new been in any in there outs Has notable too? -- there your developments then, or push So, retrofits revenue expectations? exceeding better two, developments on booking you And or one, have any have or been new delays module traction can Is to or detail live been rates? mainly were retrofits it that share where generation attach expectations with the due delays. more in

Luke Schoenfelder

I'll start Great questions. with the second one first.

sort So Housing were from NMHC, of going of, and back construction XX% were what members Council experiencing we XX% National labor material shortages. to that experiencing survey -- shortages Multifamily again, June,

when installing and to product retrofit install to a even the needs to in environment, retrofit people we're the us, there unit. for be So

And And modules. not more so what I broader rate to guess It's affecting on there a construction two the those We're a -- we're based. side, see XX% challenge. seeing then the attach definitely of very LatchOS sort seeing and booking you shortages broader we're it's broad very both. are the, or on sort of just excited of new market that

Just was from as that over that's in so a reminder, year. of a than QX up doubling last year XX% less in

sort construction. And XX-XX new to in new exciting. we're of and we've and broader uptake also very that's So but excited them, to exciting, which that across software our solving growth board. for the retrofitting we're obviously and then the seeing growth see we're to both And broader across retrofit adoption that again, also super then broad based hover needs customers around speaks of I continue said problems think before, And that the construction. just and is in

Garth Mitchell

Yeah, Steven.

there. something add just me Let

resembled have where prepared deploy crux The their in have a the installed a our customer I oftentimes we're and is or stories in that has and a ROI had and activity point of LatchOS more of into portfolios. taking in building that portfolio, decided some both of their you customer the buildings the think to stories I what second the that more we good that lot broadly of Latch back we the customers saw retrofit construction remarks, some of incremental a new from provided a seeing quarter earlier LatchOS their opportunities experienced, of modules. they talked to realize about two, the lot we

development But for to I customer about capabilities to existing again, retrofit are with buildings level think LatchOS grow direct experience include provide at we the you and customers the customers customer I'd recognize think and can urge their think as growth, more opportunities that So talk understand this both new the our retrofit about market. about that the to excited Latchs I to of question, and latter ROI deployment with buildings. portfolios going we're opportunities the and they, construction, more

Stephen Sheldon

guess I And sense. just then Makes it. one follow-up. Got

and -- channel I installation I what's capacity with and think, of the how guess maybe moving kind know you to side, as licensed partners? maybe call getting wanted on past the side pros kind the supply your about of on we installation chain have like with issues the and construction you Latch them the think completed, about I Latch I contractors but pros, if capacity just ask trained there.

Garth Mitchell

Yeah.

that So is pro excited what's something that the interesting is the program about really is about. market Latch

to customer, us. really it served this the but important, installed better experience to have is be really also which allows super exciting and allows customers us products, which on for a want to Our our holistically for even better is provide us margins really

In that very terms we're labor brand. have a we brand and if differentiated about base think exciting a the of capacity, you working very with,

Latch taking Pro and Latch people of to we our with be join that to attract to associated our as is and we with about really Latch the and started network, mantle. were talent continue pro and team. get very now products initially best aware Latch on build high, out excited just are our that that the our go and industry so products work But as to And ability we excited folks from to

Luke Schoenfelder

one Latch of Yes, and is just partners that. with of to program an all add of The the component kinds. on interacts our evolution Latch development of way channel

and going to also them kinds for co-marketing them just the not grow asking other direct really on their are We to for work with incentives direct all exclusively opportunities incremental do sales, offering employment and of Latch, businesses to Latch’s them Latch. opportunities, we're

for channel to our demand deployments pros drive nationwide building us us of LatchOS customers deeper meet output relationship and portfolios. an demand deeper those direct with a is demands that help network opportunities, Latch for use it will our broad also we into partners think of So but more our customer employment

Stephen Sheldon

my for taking questions. thanks Great,

Luke Schoenfelder

Thanks, Steven.

Operator

you. Thank

from question comes Our Sherlund next Fitzgerald. Cantor with Ben

your with proceed may question. You

Ben Sherlund

there? bit longer you really to Hey, guys. regards thinking my able With start base, big install a term. before of do an to I'm Thanks monetizing experiences, taking kind question. how to for of you the have see you're think residential little

Luke Schoenfelder

on and to really about of and we resident very the said sure for what mind the where much monetization as we a experience we've be deliver begin we have so the excited threshold for for when be service and thanks differentiated think a my units, the the XXX,XXX to better we're Yes, question. in are sort at I Ben, opportunities and that product making can those look for before, is really products Hey in really threshold, experiences now about roadmap experience was continuing start fantastic monetize we the we're excited resident, the a to is experience better to focused resident, minimum position on that. that

so call, features and progress we updates this on specific on still any really but able don't we are are our the for launch have to those residents. to making make to excited And side, product be

Ben Sherlund

great. Thank Okay, you.

Luke Schoenfelder

Thank you, Ben.

Operator

you. Thank

Baird. Our comes from question Vruwink with Joe next

may proceed your with You question.

Joe Vruwink

entails there a I down upside units, normal sequential is and is the Great. a Maybe any booked from course quarter a healthier the I unit step just Hi, happening itself. to in because the that seems just to half? seasonality then begin get or units. on revenue, was was the hoping detail the and like booked growth sequential definitely in everyone. anything think I'm business is standpoint, second to guy component, of little a more It curious just particular in else that maybe probably drivers there

Luke Schoenfelder

this I'll – take take one. I'll

good Joe, So you. hear it's from it's to good,

of are that to on The second meaningful that to lot expect at holidays, see the June, further disruption. scenario the would account provided. we've should outperformance that of these we improves the saw but just ranges, the macro Latch, is all, we one customers – the – environment I a that macro for environment. and that macro expect guidance range still we that demand that our persisted improvement macro quarters If in expect guidance previously, fourth lower able relative we macro given quarter the still seasonally part, year, of the a which our as our we extent July, for see assumes outperformance discussed the to there's be on On we the ranges in into deliver we – any the disruption to for persist remainder ranges in

Joe Vruwink

a it has like then, and high of a start from software seem new bit the the thinking provided does just products business, year at so, about projections, point, changed number quite have this substantial maybe financial Okay, the more at been of the about Latch level I'm launched.

offsets think point unit I price earlier in You getting just some that's retrofit. opportunity attached good. to your think again tracking, with so might lineup. higher think about slightly a relative do this, either start yeah, that's has as in lower The cases lower software CX you hardware, referenced it I'm about product point of rates level. going the to in There's there also some businesses think or deviations, grand-scheme good some of is But high you projections you so And price be points just slight where as wondering, bad? the and is I'm retrofits. where the that. maybe those seems appreciate, that with of and maybe the Retrofits because price you projections? How better on

Luke Schoenfelder

Yeah.

board. important think all I totally a across massive hasn't before. thank And new done much for delivering question. emphasize been as what's so is a did all So to ecosystem the And that you Yeah. way there's you product a in opportunities we're the market into across incredible

this in of a of, development public. were sort products year several referenced going cycle. two post-announcing we go typically product You to that have year, that we sort We announced

next year got the announced many them. so The planned a long ago. were time CX if deliver we've that think the two to years we're were And very from -- products you that efficiencies about before we going that,

we and anticipated saw the also opportunities right of so, capturing we're the now, challenges. of some and many And that

was lower our retrofit really was at products of higher a that for CX so to about it about customer. and even even was the price earlier again And look product the able really you provide if that design, it an retrofit. better at being point functionality best taking And aspects

And contemplated. that look were and to surprise see with think and us I long-term experiences, capabilities continue to initially new so you'll And on delight continue new product not roadmap.

continuing Garth our grow we you to into you offering so very exciting excited don't that. about if large this and feel and I to product want market. incredibly add know And anything to scaling have

Garth Mitchell

for doesn't to day Unit discussed Booked going for on a get for that Booked to is we've on one, Because different that to add in referring Joe, revenue the the it we're the you're opportunities Unit a it the increase account up-sells, on to Luke. that customer of a business. overtime. as to doesn't the long-term just but Home the doesn't for the create past, Yeah, lowest the is in that really foundation be a focused because us customer growth on for outperformance renewals, that to growth really LTV it's that, account on we LTV, to on Home what account of number

and health unit adoption our the increase market flux So you of cumulative the outperformance and for for that just additions this during described of home parameter the really business is product. the best

see best about again, what's first missed. question; driving those building forgot And starting over the had us your refer of of us portfolios. continue for lot you to understanding Unit that Booked the what's acceleration LatchOS will we have our may over Latch time. much to back actually believe that Home to each more larger a sets really would an a of driving back customers, incremental release, deals higher for their stories to modules, long-term, I We're and across home Given flow that we grow I our much get a actually to the some growth Home spread broadly of the to customer LTVs in with to the units. we experience bring actually foundation Units. the I missed and on underlying that platform. That's driving individual LTVs good think start that the come customer

barometer So, opportunity performance about actually feel we business, a ahead our of of extremely the as the by the presented us confident about year-to-date. as

Joe Vruwink

just quick follow-up then And one on this.

the to software catch-up the that's macro recognition, beginning hope disruptions for? therefore, get ultimately, all but then as discussing may exists supply comeback product, more trajectory place, period, cumulative about deliveries hoped of be original have your units, that's that's still going so backlog of a XXXX ability impacting the when question some complete you these things about of and the the chain are Do would disruptions backlog you we're this online thinking to you and kind we're is, in and your have booked obviously, So, customers' normalize. what back to point, ultimately at been in

Garth Mitchell

Absolutely Joe.

we've I made going think over and investments XXXX, into incremental have XX and of the new the booked units in backlog customers, the improvements rates -- confidence over us time. sales next to reference into we've the bunch the to this course about -- periods we're and hardware of long-term discussed give deliver year, of marketing, to a particular ability really our that home our sustainable going that again growth with high deliver that and are sustained margin, high

Joe Vruwink

much. Okay, great. Thank very you

Garth Mitchell

Joe. Thanks

Operator

Celino question with next Our Markets. Jason from Instructions] Capital comes [Operator you. KeyBanc Thank

proceed may question. You your with

Jason Celino

Hey any thoughts this Garth, the market hey surprise Luke. And The me these Thanks have enrolled in quarter fitting compare total here, then maybe delays last supply and not trends how so units in. documented the for when media, trended maybe itself? quarter? construction the chain maybe corrects on but a

Luke Schoenfelder

Hey, thanks so Jason. much,

we that, to team this, and manage source continued it's really was relationships, that tent for What most of started things. things in we and us being we've predict of are in I where competitive June a been that to always for our able the customers as pole for us, for customers are that suggests sure space, fact, and for able focused and deliver long industry the and our excited outside started data to of differentiation and really continue month was in customers, a really we've have affect deep see to hard of think, these delivering been we control. this really to sort the our do see something delivering of, proud of that these supply our survey lot So to the and actually and products June continue is our on because not to making a I'm chain the

for are We lot more other really than their that affecting control have less that just to chain. indirect of over evidence more And control our levers having that's that a those supply sourcing over materials, and own supply of having we're shortages folks indirectly. of our customers those products control -- a -- are proud -- are and pull lot now, chain, the

our are direct with demand spaces also the about as supply components what we then and deployment teams bit continue customer a further And our some focused And of to getting try so maintain we're meet I to help customers working the deliver our well. more be think ancillary products sourcing on. able that's our as be with of to optimistic Latch to well, around our the little for we're into to also products

Jason Celino

where discussed, module was great. uptick if sorry, this the was quarters No, software the sense. And you. Thank that you Okay, rates? but attach first the then, in one makes already of this saw

Luke Schoenfelder

attach XX% QX, attach modules. we module actually reported reporting two in in rate; in LatchOS or XX% Yes, we’re QX, now Jason. more rate reported Hey attach so and of XX% module rate; QX, we

So, it QX. to both is QX a continued increase and relative

Jason Celino

Thank Excellent. for the context. you

Operator

not today's I'm for Thank you participating. you. time. This Thank further showing questions at concludes conference call. And any this

You now disconnect. may

Latch (LTCH) 12 Aug 212021 Q2 Earnings call transcript