Latch, Inc. (LTCH): History, Ownership, Mission, How It Works & Makes Money

Ever wonder how smart access solutions are transforming the way we interact with buildings?

Latch, Inc., soon to be DOOR, has been making waves in the smart building industry since 2014, aiming to revolutionize access control and property management, but how exactly does it work and make money? Join us as we delve into Latch's journey from its founding to its current market position, exploring its mission to improve building management and enhance the tenant experience through its suite of software, devices, and services, especially with the latest updates in 2024 and early 2025.

Discover how Latch, with a market cap of $24.15 million USD as of April 2025, is navigating the complexities of the market while striving to deliver value to its customers and stakeholders.

Latch, Inc. (LTCH) History

Latch, Inc.'s Founding Timeline

Year established

The company was established in 2014.

Original location

The company was originally located in New York, NY.

Founding team members

The founding team members included:

• Brian Jones
• Luke Schoenfelder
• Thomas Meyerhoffer

Initial capital/funding

Latch, Inc. secured $1.5 million in seed funding in 2014. This initial capital was crucial for developing their smart access system.

Latch, Inc.'s Evolution Milestones

Latch, Inc.'s Transformative Moments

• 2017: Launch of Latch M
  • The launch of Latch M represented the company's first complete smart access system designed for entire buildings. This product was pivotal in demonstrating the viability and appeal of their integrated hardware and software solution, setting the stage for broader market adoption.
• 2021: Becoming a Public Company
  • The decision to go public through a SPAC merger with TS Innovation Acquisitions Corp. provided Latch with a significant influx of capital. This transition allowed the company to accelerate its expansion plans, invest in research and development, and enhance its market presence. However, it also brought increased scrutiny and pressure to meet market expectations.
• 2023: Business Restructuring
  • In 2023, Latch underwent a significant restructuring phase aimed at reducing costs and improving operational efficiency. This transformation involved measures to streamline operations and address financial challenges. The restructuring was intended to stabilize the company and position it for sustainable growth.

For more in-depth information, explore: Mission Statement, Vision, & Core Values of Latch, Inc. (LTCH).

Latch, Inc. (LTCH) Ownership Structure

The ownership structure of Latch, Inc. involves a mix of institutional investors, individual shareholders, and potentially company insiders. Understanding this structure provides insights into who has the most significant influence on the company's decisions and direction.

Latch, Inc.'s Current Status

As of November 8, 2024, Latch, Inc. transitioned from a publicly listed company to a private entity. This change occurred following the completion of its acquisition by Brookfield Technology Partners. Consequently, Latch, Inc. is no longer subject to the reporting requirements and regulations that apply to publicly traded companies.

Latch, Inc.'s Ownership Breakdown

Given that Latch, Inc. is now a private company, the ownership structure has likely changed significantly since its days as a publicly traded entity. Brookfield Technology Partners is now the primary owner. However, the exact ownership percentages may not be publicly accessible. The table below represents an estimated ownership breakdown based on the data available before the acquisition. As the company is now private, current details may differ.

Latch, Inc.'s Leadership

Following the acquisition by Brookfield Technology Partners, the leadership structure at Latch, Inc. may have undergone changes. While specific details about the current leadership team may not be publicly available, key roles typically include:

• Chief Executive Officer (CEO): Responsible for the overall management and strategic direction of the company.
• Chief Technology Officer (CTO): Oversees the company's technological development and innovation.
• Chief Financial Officer (CFO): Manages the company's financial operations and reporting.
• Board of Directors: Provides governance and strategic oversight, now likely composed of representatives from Brookfield Technology Partners.

For more insights into the company's mission, vision, and core values, check out: Mission Statement, Vision, & Core Values of Latch, Inc. (LTCH).

Latch, Inc. (LTCH) Mission and Values

Latch, Inc. aims to improve the way people experience their living and working spaces through technology. Its mission is centered around creating seamless, modern experiences for both residents and building managers.

Latch's Core Purpose

Official mission statement

Latch’s official mission statement is: 'To make spaces better places to live, work, and visit.'

Vision statement

While a specific, distinct vision statement is not explicitly declared, Latch's vision can be inferred from its actions and goals:

• To pioneer a future where technology seamlessly integrates into every aspect of the built environment.
• To transform buildings into connected ecosystems that enhance user experience and operational efficiency.
• To set new standards for convenience, security, and personalization in urban living and working spaces.

Company slogan/tagline

Latch uses the tagline 'Access. Reimagined.' This slogan encapsulates the company's focus on revolutionizing how people interact with physical spaces through its smart access solutions.

To gain more insights into Latch, Inc. and its investors, check out this detailed profile: Exploring Latch, Inc. (LTCH) Investor Profile: Who’s Buying and Why?

Latch, Inc. (LTCH) How It Works

Latch, Inc. provides a full-building operating system designed to streamline building management and enhance the resident experience through smart access and integrated services.

Latch, Inc.'s Product/Service Portfolio

Latch, Inc.'s Operational Framework

Latch operates through a combination of hardware, software, and services, creating a comprehensive ecosystem for modern buildings. Here’s a breakdown of their operational framework:

• Product Development: Latch designs and develops its own access hardware and software, ensuring seamless integration and functionality.
• Sales and Marketing: The company markets its products to building owners, developers, and property managers, highlighting the benefits of increased efficiency, security, and resident satisfaction.
• Installation and Integration: Latch partners with certified installers to ensure proper installation and integration of its hardware and software solutions.
• Subscription-Based Model: Latch generates recurring revenue through its LatchOS software platform, which is offered on a subscription basis. This model provides a predictable revenue stream and fosters long-term customer relationships.
• Data and Analytics: Latch collects and analyzes data on building usage and access patterns, providing valuable insights to property managers and building owners. This data can be used to optimize building operations, improve security, and enhance the resident experience.

To delve deeper into the company's core values and strategic vision, explore Mission Statement, Vision, & Core Values of Latch, Inc. (LTCH).

Latch, Inc.'s Strategic Advantages

• Integrated Ecosystem: Latch offers a unified platform that combines hardware, software, and services, providing a seamless and comprehensive solution for building management and resident experience.
• User-Friendly Design: Latch products are designed to be intuitive and easy to use for both residents and property managers, increasing adoption and satisfaction.
• Scalability: Latch's solutions are scalable to accommodate buildings of all sizes, from small apartment buildings to large multi-use developments.
• Partnerships and Integrations: Latch has established partnerships with key players in the real estate and technology industries, expanding its reach and enhancing its product offerings.
• Data-Driven Insights: Latch's data analytics capabilities provide valuable insights to property managers and building owners, enabling them to make informed decisions and optimize building operations.

Latch, Inc. (LTCH) How It Makes Money

The company primarily generates revenue by selling and servicing its smart lock systems and related software to apartment buildings and real estate developers.

Revenue Breakdown

As the company is no longer publicly traded, detailed revenue breakdowns for 2024 are not available. The following table uses estimates based on the company's historical performance and general understanding of its business model prior to being taken private. These figures are not official and serve only as a hypothetical illustration.

Business Economics

• Hardware Sales: The company sells smart lock devices and related hardware to property owners. Revenue from this stream depends on initial installations in new buildings and replacements in existing ones.
• Software and Services (SaaS): A significant portion of the company's revenue comes from recurring software subscriptions. These subscriptions provide building managers and residents with access to features like remote access, guest management, and building operations tools.

Financial Performance

Given that the company is no longer publicly traded, current detailed financial metrics are not accessible. However, when it was public, key metrics included:

• Annual Recurring Revenue (ARR): This was a critical metric, reflecting the value of its subscription-based software revenue.
• Gross Margin: The gross margin on hardware sales was typically lower than that of software services.
• Customer Acquisition Cost (CAC): The cost to acquire new customers, particularly property owners or developers, was an important factor in assessing profitability.
• Net Dollar Retention Rate: A high net dollar retention rate indicated strong customer loyalty and the ability to increase revenue from existing customers over time.

For more insights into the company's investor profile, check out: Exploring Latch, Inc. (LTCH) Investor Profile: Who’s Buying and Why?

Latch, Inc. (LTCH) Market Position & Future Outlook

As of April 2025, Latch, Inc. faces a dynamic market environment where strategic agility and innovation are essential for sustaining and improving its competitive position. The company's future hinges on capitalizing on emerging opportunities while effectively mitigating potential risks.

Competitive Landscape

Opportunities & Challenges

Industry Position

Latch, Inc. holds a notable position within the smart access solutions market, characterized by:

• A focus on integrating hardware and software to provide a seamless user experience.
• A strong emphasis on the multifamily residential sector.
• Ongoing efforts to innovate and expand its product offerings.

For more in-depth insights into the company's financial standing, see: Breaking Down Latch, Inc. (LTCH) Financial Health: Key Insights for Investors