NEW YORK, May 20, 2022 (GLOBE NEWSWIRE) — Latch, Inc. (NASDAQ: LTCH), maker of LatchOS, the comprehensive enterprise software-as-a-service (SaaS) platform, today announced the completion of a downsizing. In addition, the Company announces the reorganization of the sales and marketing departments under the leadership of Lee Odess. Prior to this role, Odess was the General Manager of New Market Development at Latch. Odess is a recognized industry leader with nearly 20 years of experience driving sales growth, product innovation and geographic expansion for leading intelligent access and security companies.
Latch believes that, along with the recently announced reorganization of its product organization and revised sales compensation structure focused on recurring software revenue, these changes will position the company for long-term growth while accelerating its trajectory to self-sustaining free cash flow and profitability. . Latch expects this downsizing to better align staffing and spending levels with current sales volumes and the current macroeconomic environment, with continued construction delays and supply chain shortages. The reduction affects about 130 people, or about 28% of Latch’s full-time employees. When fully implemented, Latch expects to realize annual operating cost savings of approximately $40 million in research and development, sales and marketing, and general and administrative expenses. The reduction is expected to result in a total of approximately $4-6 million of cash restructuring costs and related charges primarily related to severance and employee benefits (excluding the impact of stock-based compensation) , almost all of which should be committed in the second quarter of 2022.
Latch’s guidance provided in its first quarter earnings release does not reflect the recently completed downsizing. Latch intends to provide further information on this reorganization and updated guidance as part of Latch’s second quarter earnings release.
As of March 31, 2022, Latch had cash and marketable securities of $335 million and continues to believe it is fully capitalized to fund its growth plan to achieve free cash flow breakeven.
About Latch, Inc.
Latch makes spaces better places to live, work and visit through a system of software, devices and services. For more information, please visit https://www.latch.com.
This release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the adoption of Latch’s technology and products. These forward-looking statements are generally identified by the words “believe”, “project”, “expect”, “anticipate”, “estimate”, “intend”, “strategy”, “future”, “opportunity “, “plan,” “may,” “should,” “could,” “will,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections, and other statements about future events that are based on current expectations and assumptions and, accordingly, are subject to risks and uncertainties. Forward-looking information includes, but is not limited to, statements regarding: the company’s future products, performance and operations , as well as the related benefits to shareholders, customers and residents; the impact of downsizing on the Company’s business; and the Company’s strategy. Many factors could cause events to materialize. Actual results differ materially from the forward-looking statements contained herein, including Latch’s ability to implement business plans and changes and developments in the industry in which Latch competes. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of our Annual Report on Form 10-K filed with the SEC on March 1, 2022, and other documents filed by Latch sometimes. with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to place undue reliance on any forward-looking statements, and the Company undertakes no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise. except as required by law, including United States securities laws and SEC rules and regulations. The Company does not guarantee that it will achieve its expectations.