LATCH(US:LTCH)2025-11-05 20:08Financial Performance - Software revenue for Q3 2024 was $5.077 million, an increase of 8.9% from $4.660 million in Q3 2023[264] - Total revenue for Q3 2024 reached $14.943 million, representing a 54.5% increase from $9.673 million in Q3 2023[264] - Net loss for Q3 2024 improved to $(17.056) million, a reduction of 37.5% compared to $(27.278) million in Q3 2023[264] - Adjusted EBITDA for Q3 2024 was $(12.409) million, a slight improvement of 7.7% from $(13.444) million in Q3 2023[264] - Total revenue for the nine months ended September 30, 2024, increased by $8.9 million (28.8%) to $39.9 million compared to $31.0 million in 2023, driven by a $5.8 million increase in professional services revenue, a $2.1 million increase in software revenue, and a $1.0 million increase in hardware revenue[299] - Net loss for the nine months ended September 30, 2024, was $47.6 million, a reduction of $43.4 million (47.7%) compared to a net loss of $91.1 million in 2023[299] - Basic and diluted net loss per common share improved to $0.30 for the nine months ended September 30, 2024, compared to $0.62 in 2023, reflecting a 51.6% improvement[299] Revenue Breakdown - Professional services revenue surged by 247.9% to $6.3 million, driven by $4.1 million from HelloTech and $0.8 million from DPM[290] - Hardware revenue rose by 12.3% to $3.6 million, while software revenue increased by 8.9% to $5.1 million[288] - Total revenue for the three months ended September 30, 2024, increased by $5.3 million to $14.9 million, a 54.5% increase compared to the same period in 2023[288] Expenses and Costs - Total cost of revenue increased by $5.3 million to $8.9 million, with professional services costs rising by $3.2 million and hardware costs by $2.1 million[291] - Research and development expenses decreased by 52.4% to $4.9 million, primarily due to a reduction in restructuring costs and personnel-related expenses[292] - General and administrative expenses decreased by $6.0 million to $12.8 million, mainly due to lower personnel-related expenses and professional fees[294] - Loss from operations improved by 39.2% to $17.4 million compared to the prior year[288] - Cost of revenue decreased by $2.0 million (8.7%) to $21.5 million for the nine months ended September 30, 2024, primarily due to a $6.4 million decrease in hardware costs, partially offset by a $4.4 million increase in professional services costs[300] - Research and development expenses decreased by $15.9 million (57.0%) to $12.0 million for the nine months ended September 30, 2024, mainly due to a $10.4 million decrease in personnel-related expenses[301] - Sales and marketing expenses decreased by $4.0 million (31.7%) to $8.7 million for the nine months ended September 30, 2024, primarily due to a $1.5 million decrease in personnel-related expenses and a $1.4 million decrease in restructuring costs[302] - General and administrative expenses decreased by $13.1 million (24.0%) to $41.4 million for the nine months ended September 30, 2024, primarily due to a $8.3 million decrease in professional fees[303] Cash Flow and Liquidity - As of September 30, 2024, the company's unrestricted cash and cash equivalents were approximately $91.2 million, an increase from $44.1 million as of September 30, 2023[307] - Net cash used in operating activities for the nine months ended September 30, 2024, decreased by $12.0 million to $(61,972) thousand compared to $(73,934) thousand in 2023[323] - Net cash provided by investing activities increased by $51.5 million to $71,874 thousand for the nine months ended September 30, 2024, driven by a $105.6 million decrease in purchases of available-for-sale securities[324] - Net cash used in financing activities for the nine months ended September 30, 2024, was $(22,000) thousand, primarily due to the repayment of Promissory Notes[325] - The Company maintained a liquidity ratio of at least 4.00, tested monthly, as required by the Loan Agreement[321] - As of September 30, 2024, the Company was in compliance with all covenants under the Loan Agreement[321] Corporate Actions - The company completed the merger with HelloTech, assuming approximately $6.9 million in outstanding borrowings as of July 1, 2024[258] - The new loan agreement with Customers Bank amounts to $6.0 million, maturing on July 15, 2029, with interest payable at a minimum of 6.0%[260] - The Company issued a warrant to Customers Bank to purchase 1,000,000 shares of common stock at an exercise price of $1.25 per share, expiring on July 15, 2030[322] - The company incurred $5.7 million in restructuring costs related to a reduction in force conducted in July 2023 to streamline operations[309] Accounting and Compliance - The company identified errors in revenue recognition practices, leading to a restatement of financial statements for the year ended December 31, 2022[255] - The company operates in one reporting segment, focusing on the multifamily rental market in the U.S. and Canada[253] - There were no off-balance sheet arrangements as of September 30, 2024, that could materially affect the Company's financial condition[326] - The Company experienced a $34.2 million decrease in net loss after adjusting for non-cash items for the nine months ended September 30, 2024[323] - A $30.0 million decrease in accrued expenses was noted, primarily due to a $19.3 million accrual of an investment security in 2023[323] - The Company did not conduct any financing activities during the nine months ended September 30, 2023[325]