Latch Stock Declines After Lowering Full Year Revenue Guidance
Latch's stock price declined ~17% the day after it announced its Q2 2021 earning and lowered full-year revenue guidance.
However, the company remains bullish as it increased bookings guidance.
In this report, IPVM examines:
- Lowered full year revenue guidance
- Supply shortages behind revenue shortfall
- Q2 2021 revenue
- Bookings rise
- Hardware v. software gross margins
- Comments on customer churn
- Market reaction
*** *********, ********'* ** **** ********* ****************** **** **********.
Latch **********
***** ** ** ****** ******* ******* that **** ****** ** **** **** through * **** (*******-******* *********** *******) sponsored ** ******* ******, * ********* commercial ****-****** *******, *** ****** ********* ************, * ****-***** **. *** ******* raised ~$*** ******* *** *** ****** at $*.** ******* ******* ***** **** than $** ******* ** ******* ** 2020.
*** **** *** ************* ** ****** control, ******** ** *** **** ** millions ** ******* ***** ****** ******* companies *** ****** **********. *** ******** Latch ********, ******** **** ******, ****** ~$*** ******* At $*.** ******* *********.
Stock *****
***** ***** ******* ~**% *** *** after ** **** ******* **** *********, showing *** ******** ************** **** *** news:
Company ****** **** **** ******* ********
***** ******* *** **** **** *** revenue ******** ~**% **** *** ***** of $** *******-$** ******* *** **** to $** *******-$** ******* ***, ** its ****** ** **** ******** ****:
** ****, ** *** ****** **** year ******* ** *** ***** ** $38 ******* ** $** *******, ********** 110% ** ***% ****-****-**** ****** ******** to *** ***** ***** ** $** million ** $** *******.
** *****'* *** ********, *** ******* laid *** ** ********* *********, ********** expecting $** ******* ** *** *** of ****. ***** ********* *** *** revenue ** **** **** *** **** 2020 ** ****:
**** ************* ***** *** ******* ***** expects ** ****:
**** ** *****'* ***** ******** **** since ***-*** *** **** ** **** 2021.
Labor *** ******** ********* ***** ******* *********
** **** ******* *** **** **** expected ******* ** ***** *** ******** material *********, ******** ************:
******** **** ** *** ***** *** of *** ****** ******* ******** ***** as ** ***** ** *** **** of *** ****** ** ***** *** building ********* ********* ** *** *** of *** *******, **** ******* ** the ***** ** ****. ***** *** products *** ********* ***** *** ***** materials ********* ****** ********** *** ************ and ******* ********, ********** ****** *** have ** ******** ****** ** ********** periods.
******* ********************* **** ***** ******** ****** ** installed ** *** ***** ** *** completely ***** **** *** ********/******* ****:
*** ****** *** ************ ******** ********* that *** ***** ****** *** ******** are **** ********** ********* **, ******* they're ********* *** *********. ******* * give * **** ******** *******, ******* our ******** *** *****, **** ** the **** ******** ** ** ********* before * ****** ***** **** *** space. ** ***** ** * ******** in *****, ** *****'* * ******** in ********, **** ******** *** ****** the ******** ******** ** **** ** this ******** ******.
******** ***** *** **** **** ** deliver ******* ** *** ******* **** its *** ****** *****, ************ ******** that ***** **** *** **** ** much ******* **** *** *********' ****** shortages:
******** ****** **** ****** ******** **** June *** *** ***** ***** **** [supply *********] ****** ******* ** ****** a *** ** *** ********* *** I *****, *** **, **'* **** for ** ** ******* ****** **** are ******* ** *** *******.
*****'* ********** **** **** ** ***** due ** ****** *********:
***** *** *********, ************ ******* *** end ** *** *******, ***** ** costs ** **** ** ******** ********** to **** *** ********, *** ***** in *** ******** **** ** *** and ****** ** ******** ** *** supply ***** *************, **'** **** **** to ******** ** ******* **** ** many ***** ********* **** *** **** able **. ** ** *** **** again ** * **** ****** ** competitive *************** ***** *******.
***** ** ******** *** ************ ****** will ******** ********** ****, ***** ****** the **** **** ******* ********:
******** **** ******** **** *** ******** could ********** **** ****** ****** *** end ** *** ****, *** ** are ********* ******** *** ************ ****** process *** *** ********* ** ****.
Q2 **** ******* $* ******* ***
*****'* ** **** ******* *** ~$* million ***, ** ***% **** ~$*.* million ** ** ****:
*** *** ******* *****, ***** *** beat *** ****** ******* ********** ** 165%.
Bookings ******** **** *%
** *** ******** **** *** *****, the ******* ****** *** ****-**** ******** expectations ~*%. ********** ** *** *** presentation, ***** ******** ~$*** ******* ** booked ******* ** *** *** ** 2021. ***** *** ******* ~$*** *******:
**'** *** ******* *** ****-**** ***** bookings ************ ** *** ***** ** $325 ******* ** $*** ******* ********** 97% ** ***% ****-****-**** ******, ******** to *** ******** ******** ***** ** $290 ******* ** $*** *******.
***** *** **** *** **** **** since *** ******** *** **** ****** than ** ********* * **** *** that *** ************ ** *** ******** are **** ******** ***** **********, ***** bookings **** **** **** *******, ** delays *** ********. ***********, *** ****** did *** ******* ********** ** ***** results.
Gross ******* - ******** ** **%, ******** ********* *** ***** ********
*****'* ******** ***** ******* *** ****, ~90%, ***** ** ******* *** ******* software:
*** ******** ***** ****** *** **% for *** ****** *******, * ******** difference ******** ** **% ** *** second ******* ** ****. ** ******* these ******** ******* ******** ** *********** the ******** ** *****’* ******** ***** and ********* *** ******** *** ******* software *****, ***** ******* *** ** LatchOS *************, ********* *********** ***** *** third ***** ******** *******.
***** ***** ********, ******** ***** ******* are ********* **** -**% ** ** 2020 ** -**% ** ** ****, with ***** ******:
** ******* * ****** *********** ** hardware ****** ** ******** **% *** the ****** ******* ******** ** ******** 65%, ** *** ****** ******* ** 2020 *** ** **** ******** **% a ******* ***. **** *** ******* driven ** ***** ************ *** **** cost ********* **** ********** ****** ********.
***** ******* ******** ******* ** ****** a ******* ******* ** ******* *******, which ***** ******** ******* ***** *******:
**** ****, ** ****** ******** ******** to ******** ** * ********** ** our ******* ***, * *** ****** for ****-**** ***** ****** *********.
*******, ******** ********* ******** *** ~**% of ***** *******:
*******, *****, ** *** *** ************, projected **** **** ******* **** ***** come **** ********, **** ** ****:
Rival *******
*** ***** ******** ********* *** ***** is **** ******** ********* ** ********** *** *********** ***** ** ** public **** ****, ** ****** ****. The ******** ** ***** **** *********, combined **** *** *********** ** ** open ************ *********** ** ***** ***** increase ***********. ** **** ** ******* Smartrent ***** ****** **** ****.