Latch 2023 Turnaround And Financials Analyzed
Jamie Siminoff scored a home run with Ring. Now investors are waiting to see if he can make the same magic happen by turning around Latch — a different type of security product targeting property owners and management companies instead of consumers.
In this note, we examine the changes implemented after Latch acquired Honest Day's Work, strategic options going forward, the opportunities the deal provides for Siminoff, and issues for Latch that still need to be resolved.
For background on Latch, see:
- Ring Founder Taking Over Latch (Latch / HDW Merger)
- Latch Lays Off 59% More Employees As Ex-Ring Founder Takes Over
- Latch's Broken Business Model Analyzed
- Latch Founder / CEO Is Forced Out, More Layoffs
- Latch, CEO, and CFO Sued; Alleges Fraud
- Ex-Latch Sales Director Sues Latch and CEO
- 3rd Lawsuit Filed Against Latch / Executives
Executive *******
********'* ********* ******** ** ***** ** a ***** **** *** **** *****, given *** **** ******** *** ********'* cache, *** ** *** *** *********** risks.
** *** ******** ****, ******** ******** a ***** ********* *** ********* ******** them ** (******) ****** *** ******** with *****'* *******. ****, ******** *********** obtains ~$*** ******* ** **** ** rebuild ***** *** ***** *** *** startup. ******** **** ********'* ********** ****-*******, the *** ***** *** * **** runway *** *** ****.
*** **** *** ********** *** *** growing ****** ** ******** ******** ******* Latch *** *** *** ** ***** and ********'* *******. ***** *** ******** are *** ********'* *****, ** ******** the ******* ** ********* ********* ******** liability. **** *************, ******** ** ********* 2 ********** **** *** ******** ******* but **** ********* **-**-*******.
Changing *** *********
****** ** ****** *****'* *** ***** this **** ***** *** **** **** his ******* ***, ******** **** ***** in *********** ******* *** *** *******'* business *** **** * ******* ***** for *** *********. (******** ********* ******** *****'* ***** ******** *******.)
***** *** ******** *** ** **-******* Luke ************, ******* "** ***** **"**** *********, ************, *** ****** ******* as * ***** ****-**** *********. ***** ******** *******, ***** ** ****** * ***** announcing *** ********* **** ***** ** January ****, ************ ***** ******* "** American ************, ********, *** ********."
******** *** * ********* *** ********** public ******* ** * ********* ********. The ****** **** "***** ****" ********** bounced**** **** ******* ** ***** * deal **** *** "******"*** *** ******* ***** ******** ** found *** ****** **************. ******** ***** **** **** ** the **** ** ****** "*****."
** *******,************ **** ******** *** * "**** pioneer" *** **** ** *** "******** for *** ** **** **** *** CEO **** ** ***** ** **** this **** *****."
Curbing **** ****
* *** ***** *** *****, ***** Siminoff *** ******* ******* ** ******, is *** **** ** ***** *** company *** ******* ******* ****.
**** ******** ** *** ******** *** ******* *** ** *********** deficit ** $***.* ******* *** *** on ***** ** **** ~$*** ******* in ********* ********, ******** **** **** $7.9 ******* - $**.* ******* ** annual ********* *******. ** *** **** losing ~$*** *** **** ** ******** sold, ******* ** **** **** ****** into *** ***.
**** ****** ******* *** *** ********* because *** ******* ** ********* ** the ******* ** ********* *************** ** ******** ***************** ********** ******. ** *** *** filed *** ********* ******* **** *** U.S. ********** *** ******** ********** ***** May ****.
******** ********* ******* *** ******, ***** started ******* ** ******** ******* ******** rounds ** **************** ** ****. *************** *** ************* ******* **** ***** *** ** under **.
***** ** *** ******* ** ******** for ** ****, ***** *** ** track ** ***** **** **** $*** million ** *******, *******, **************, *** marketing ******** *** *** **** ****** it ***** ******* *****. *******, *** total ********* ******** **** *** ** reach ** ***** $*** ******* *** the ****. **** ******* ** **** to *** **** $** ******* *** the ****, *** ******* *** ** track ** **** ** ***** $*** million ** ****
********* ** *** *********, ** *** first ******* ** ****, *** ****** spending **** ** ******** *** ******* down ** ***** $** *******. ** whittling *** ********* ** ***** **, Siminoff ****** *** ****** ******** ******** to ****** $** *******, ** ***** $22.8 *******, ********* ************* *****.
******** *** **** ***** ** **** losses **** ******** ***** ** ******** on***** *******, ***** ****** ***** ** ** be ********** **** ***** ********* *** devices. * ***** **** ***"**** '** *** *****; **** '** the ******" ******** *********** *********** *** ****-****** **** ********* should **** **** **** ***** ** check.
$200M+ ** *******
***** ****** ** **** * ******** of *** ***-**** **** ********* ******* ****** **** * ********** ** ******* ******, *** *** cash ******** *** ***** ******* ****** account *** ********* *** ** *** total****** ***** ** ****** $*** *******.
**** ******** ****** * **** **** Latch ** *** ****, *** ****** value *** **** *****: ***** $*** million, ** **** **** *** **** value *** ******** **** **** **** the **** *** ********** ********** ** had ** ****. *** ***** ***** has ***** ************* ***** *** **** with ******** *** *********, **** ~$*.** - ~$*.**.
******* *** ******** ******, ***** ** well-capitalized. *** **** ****** *** * related **** *********** ******** ****** $*** million ** **** **** ***** ** 2021.
********* ** *** *******'* **** ********-*, *** ** ****, ***** *** ~$*** ******* ** cash *** **** *********** *** ~$*** million ** ***** *****-**** ********** *********** at *** *** ** ****. *** company **** **** ******-**** ********** ******** ~$103 ******* *** *** ** *********** long-term ****.
******** *** ******* *** **** ** to ** ***** $*** ******* ** reserves, ******** **** **** ************ ********* for ****** ********* *********** *** ************* Latch ***/** ******** *** *** ******* HDW.
Latch/HDW ***********
******** *** *** ********* **** ************* focuses — ***** ******** ******* ***** systems *** ********* *********, *** *** aims ** ******* ************* ********* *** residential ******* ********* **** ** ***** cleaners *** *** ******* — ***** is ** *********** *******.
* *** ******** **** ******* ********** post-merger ** *** ***** *** ********'* HDW **** ******** ********. ***** *** a *** ******** ********* ***** ******** could ******** ******:
- *********** **** ***** *** *** ** two ******** ****** *** **********
- *********** ***** ** *** *** ******** its **** ***** ** ***'* *****
- ********* *** ******** **** ***** *** concentrating ** *****'* ********
********** ** ******* ***** *** ******** out *** ***** ** ********* ** do ************** *** **** *** ******** company *** **** ** *********.
* *********** ********** *********** ***** ** using *** ****** ** ****** *****'* identity ********. *** ***** ******* * new **** *** * ********** ***** start.
*******, *** ******* **** ***** **** months ****** *** ****** ****** *** had ** *********** ********. *** ****** mission ** ******** "************ ******* **********" for *********** ******* ********* **** **** it ** * ******* ***** **** already ******* **** **** ***********,***,*****,****, *************.
*** *** ********* ******, ***/***** ** oriented ****** *** ***** ******. * spokesperson *** *** **** **** **** for ***, *****'* ***** **** ****** in ******. *** ************ *** *** answer ****'* ********* ***** **** **** happen ** *** *** ***** *** business **** ** ******* **** **** be ********** ******** ***** *****.
** **** ****, ** *** ********* as *** ******** ***** *** ***** brand. *** ********* **** ** ** create * ******** ********** *** ******. Latch **** ****** ******* ** *** mission ** **** ** ****** *** customers ** ******* *** **** ******** living ********** ** ***** *********.
**** ***** *********** ******* **-**-****** **********, and ************ ********* **** ********** *** externally ** ******* ********* **** *** best ******** *** ******** ** *** lowest ****. ***** ******** ****** ****** in ********* ***** *** ******* ** support ****-**** ******** ******.
Legal ***********
*** ***** *** ******** ******** **** have ** **** **** ** *** to ******* *****'* ***** *********** ****. Latch ********* **** ***** ** ***** four ******** ***** ****** **** **** Latch's ********** ** *** ********** ********, the *********** ** *** **********, *** a ******* ***** ** *** ***** price.
* ************ *** ***/***** ******** ** comment **** ***** ** **** ***** the *********** ***** ******. *** ************ said:
***** **** *** ******* ** ***** matters. *** *********** *** ***** *** ongoing *** ** *** ******* **** to **** *** ****** *********.
***** ** ********* *** ********** *** all ** **** *** *** ***** quarter ** **** *** ** "******* recognition ******," ***** ******* ** *** company's ******** ** "******* ** ******" as * ******* ********* ** ******* growth. *** **** ***** *** *** lead ** *****, ********* ** ***** booking************* **** ******* **** ********.
"******" **** *** *** *********** *** not *****. *** ** ********** ** the ******** *** **** **** ***** executives ***** ********* ** **** ******** disregard *** *** *****, **** ***** could ** ****** *** *********** ***** fraud *******.
*** ** *** ***** ****** *******. A **** ********* *** **** ********* in *** ******** ******** ***** ****** filed,******* *. ***** ***., *** *** ***** *** **** the ***** **** ** ******* ** file ** ******* ********* ***** ***** submits ******** ********* ******* ** *** SEC ** ****** ****.
Shareholder ********** ******
*** **** ****** *******,* *********** ********** ********* ** ***** ******** ****** ********, accuses ****** ***** ********** *** ******* Speyer ********** ******** ** *** **** deal ** ********* ********* ******.
***** ** **** *** ****** *****, the *********** ********** **** ***** ****** headaches *** ******** ** ** ***** to ***** *** ******* **** ****** ground. *** **** ***** *********** **** the ********** ********** *** ** ***** requiring **** ************ **** **** **************, including ********** ************ ** ******** ** least **** *** ********** ** *** board.
******** ***** **** ***** ** ******* from *** ******** *** *** ******* from *** ********** ****. ********* *** HDW ****, ** **** * **.*% stake ** *** *******, ********* *** 19,075,675 ****** ** ******** **** ***** in ******** *** *** *** **,*** shares ** ****** ** *** **** market ** ***. **, ****,********* ** * **-*.
SmartRent **********
* ********* *** ********* *****'* *********** going ******* ***** ***********, * ********* ******** ********** *** smart **** ******** *** ******** ******* that **** ****** ** ****** **** through * ****** **** * **** backed ** ******* ******* **** ***** Wall.
********* ****** ~$*** ******* *** ******** a $*.* ******* *********** *** **** ************ **** *****'* ~$*** ******* ****** at *$*.** ******* *********. ***** *** ***** ***** *** SmartRent *** **** ******* ************* ***** then, ** *** ****** **** *********** than *****'*.
********* ****** ** ~$*.**, ****** ** * ***** ****** value ** ***** $*** *******, **** about **% **** **** ** ***** traded ********. *****'* ****** ***** *** fallen ** ***** **%.
******* *** ****** *** **** ********** problems, ********* *** ******* ******* *** open ************ *** ***** "******** ********" when ** **** ******, *************** ** from *****.
*********'* ***** ******* ** **** *** also ****** ***** ***** *****'* ** the **** ****, ** $***.* ******* compared **** $**.* ******* *** *****. SmartRent **** ******** **** ***** ****** from ********** *** **** ** $**.* million ******** **** $***.* ******* *** Latch, ****** *****.
** ****, *********'* ******* ****** ** 52% ** $***.* *******, ***** *** losses **** ********** **** ** **% to $***.* *******.
*********'* **** ********* ** ********** ******* **** ****** **-*** *****:
*******, *** ******** ********** ** **** SmartRent ******* ******* ** ******* ****** control ******** ** ********* ******* ***** is *** ********* *** ******** **** business (***** ** *** ***** ********* cut **** ** *********) *** ********'* emerging ********.
******:***** *** *** *********** *** **** / *********** ** ~$192 *******, ** *** **** ***** of *** ~$*** ******* ** ******** projected.
*** *** **** ** **** ***** still ***'* **** *** ********** (*** over * ****) *** **** ** suspended **** *******:
***** ** *** *** ****** ****** is * ********* *** *****, ****** if ******** ***** ****** ****** *** they *** **** ** ******* ******* NASDAQ *****, **** *** ** ********.