LATCH(US:LTCH)2025-03-26 19:37Financial Performance - Software revenue for Q2 2023 was $4,413,000, a 36.2% increase from $3,239,000 in Q2 2022[223] - Total revenue for Q2 2023 was $10,178,000, up 3.5% from $9,830,000 in Q2 2022[223] - Net loss for Q2 2023 decreased to $30,876,000 from $51,616,000 in Q2 2022, representing a 40.2% improvement[223] - Adjusted EBITDA for Q2 2023 was $(20,112,000), a 43.5% improvement from $(35,584,000) in Q2 2022[223] - Software revenue for the first half of 2023 was $8,386,000, a 41.0% increase from $5,946,000 in the same period of 2022[223] - Total revenue for the first half of 2023 was $21,328,000, down 8.8% from $23,386,000 in the first half of 2022[223] - Net loss for the first half of 2023 was $63,800,000, a 35.2% improvement from $98,448,000 in the first half of 2022[223] Revenue Breakdown - Total revenue for the three months ended June 30, 2023, was $10.178 million, a 3.5% increase from $9.830 million in the same period of 2022[244] - Software revenue increased by $1.174 million (36.2%) to $4.413 million, driven by growth in subscriptions[244][246] - Hardware revenue decreased by $0.447 million (9.5%) to $4.263 million, primarily due to lower units delivered[244][246] Cost and Expense Management - Total cost of revenue decreased by $6.802 million (52.0%) to $6.278 million, mainly due to a $6.622 million decrease in hardware sales related costs[244][247] - Research and development expenses decreased by $8.050 million (48.2%) to $8.660 million, attributed to reduced personnel-related expenses[244][248] - Sales and marketing expenses decreased by $12.446 million (74.0%) to $4.378 million, primarily due to lower personnel-related and marketing expenses[244][249] - General and administrative expenses increased by $8.176 million (66.3%) to $20.517 million, driven by higher professional fees and litigation expenses[244][250] Other Income and Cash Flow - Total other income increased by $1.568 million (143.5%) to $475 thousand, primarily due to a smaller decrease in the price of common stock[244][252] - Total other income decreased by $4.6 million for the six months ended June 30, 2023, compared to the same period in 2022, largely due to a $9.3 million unfavorable change in the fair value of the Private Placement Warrants liability[263] - Net cash used in operating activities decreased by $38.2 million for the six months ended June 30, 2023, compared to the same period in 2022, primarily due to a decrease in net loss of $34.6 million[282] - Net cash provided by investing activities increased by $10.4 million to $55.3 million for the six months ended June 30, 2023, compared to $44.9 million for the same period in 2022[283] Strategic Initiatives - The company completed a merger with HDW on July 3, 2023, which is expected to enhance market presence[217] - The company is focusing on evolving its go-to-market strategy to achieve higher sales volumes at lower incremental costs[218] - Research and development expenses are expected to decrease for the remainder of 2023 due to restructuring initiatives[237] - The company incurred $8.6 million in restructuring costs during the year ended December 31, 2022, resulting from the 2022 RIFs[267] - The company issued $22.0 million in unsecured promissory notes as merger consideration in connection with the HDW Acquisition in July 2023[269] - The company expects to use its current cash and cash equivalents and available-for-sale securities to fund operational cash requirements for at least 12 months from the date of the report[272] Cash Position - As of June 30, 2023, the company's unrestricted cash and cash equivalents were approximately $190.2 million, with available-for-sale securities totaling $75.5 million[265]