Latch, Inc.

Q1 2022 revenue was $13.7 million, up 106% year over year, with software revenue of $3 million, up 88% year over year. ARR was $7.9 million, up 137% year over year, and spaces were almost 127,000, up 129% year over year. Software margin was 89%, while hardware margin improved quarter over quarter from negative 50% to negative 21%; adjusted EBITDA loss was $36.8 million versus a loss of $44.4 million in Q4 2021. Cash and marketable securities totaled $335 million as of March 31, 2022. For guidance, the company raised full-year recurring software revenue guidance to $14.3 million-$15.3 million, introduced full-year ARR guidance of $11.1 million-$11.9 million and spaces guidance of 182,000-194,000, kept full-year total revenue guidance at $75 million-$100 million, and updated full-year adjusted EBITDA loss guidance to $176 million-$156 million. Q2 guidance was software revenue of $3.3 million-$3.4 million, total revenue of $16.5 million-$18.5 million, and adjusted EBITDA loss of $40 million-$36 million.

Luke Schoenfelder framed the quarter as evidence that Latch is gaining traction across software, services, partnerships, and retrofit opportunities. He emphasized that the company is shifting its sales incentives toward recurring software and services, expanding its ecosystem with second- and third-party hardware, and preparing new retrofit products and a major LatchOS update later in the year. His tone was optimistic and confident, but he repeatedly acknowledged that supply-chain and construction timing remain external constraints.

Barry Schaeffer highlighted the core financial metrics: $13.7 million of total revenue, $3 million of software revenue, 89% software margin, negative 21% hardware margin, $51.2 million of operating expenses, and a $36.8 million adjusted EBITDA loss. He said the quarter benefited from improved hardware margins and strong attach rates for products like intercom, smart home, and Latch Delivery Assistant, while services rose to over 10% of revenue and should stay at that level in Q2. On the balance sheet, he cited $335 million of total cash plus marketable securities, and he said guidance assumes no meaningful easing in supply-chain issues and remains cautious on hardware revenue because of spot buys and construction delays.

Analysts focused on whether the new sales compensation plan was already improving execution, and Luke said the company exceeded the high end of software guidance and raised full-year software outlook, which he viewed as an early positive sign. Questions also centered on macro conditions, retrofit demand, second- and third-party hardware, backlog conversion, and the path to cash-flow breakeven; management said they are assuming little change in construction delays and spot-buy pressure, but remain confident in backlog, retrofit momentum, and a fully funded plan. On M&A and buybacks, Luke said Latch will consider build, buy, and partner opportunities opportunistically, but nothing specific was announced.