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Latch Inc. (LTCH) has submitted its 10-Q filing for the quarterly period ended March 31, 2023.
The filing details a decrease in total revenue to $11,150,000 from $13,556,000 in the same quarter the previous year. This decline was primarily due to a reduction in hardware revenue, which fell to $5,345,000 from $9,288,000.
Software revenue, however, increased by 46.8% to $3,973,000, reflecting growth in subscriptions. Installation services revenue also increased by 17.4% to $1,832,000.
Cost of revenue decreased slightly to $13,641,000 from $13,944,000, with a notable increase in the expense for excess and obsolete reserves.
Operating expenses decreased significantly to $30,636,000 from $52,855,000, primarily due to reductions in research and development and sales and marketing expenses following restructuring initiatives.
The company reported a net loss of $32,924,000, an improvement from a net loss of $46,832,000 in the previous year.
Latch also disclosed ongoing legal proceedings, including securities litigation and a service provider demand, which have resulted in significant legal expenses.
The filing highlights the company's cash position, with $209.8 million in unrestricted cash and cash equivalents as of March 31, 2023, and outlines its efforts to address material weaknesses in internal controls identified in previous audits.
Latch continues to focus on remediating these material weaknesses and enhancing its internal control environment, with several initiatives underway to strengthen financial reporting and compliance.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Latch Inc. quarterly 10-Q report dated March 26, 2025. To report an error, please email earnings@qz.com.