Door (LTCH) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 increased 27.1% year-over-year to $12.9 million, with software revenue up 13.8% and professional services up 55.3%.

• Net loss narrowed by 45.1% to $16.9 million for the quarter, and by 52.1% to $30.6 million for the first half of 2024.

• Adjusted EBITDA improved by 50.7% to negative $9.9 million for the quarter and by 61.2% to negative $17.3 million for the first half.

• The company completed the HelloTech Merger in July 2024, expanding its service platform for multifamily buildings.

Financial highlights

• Hardware revenue grew 31.0% year-over-year in Q2 2024, driven by increased shipments.

• Software revenue rose 13.8% in Q2 2024, reflecting growth in subscriptions from delivered hardware units.

• Professional services revenue increased 55.3% in Q2 2024, mainly from property management.

• Cost of revenue increased 11.6% in Q2 2024, primarily due to higher professional services costs.

• Operating expenses decreased 32.7% in Q2 2024, with significant reductions in R&D, sales and marketing, and G&A.

Outlook and guidance

• Management expects current cash and investments to fund operational needs for at least 12 months from the report date.

• No restructuring costs are anticipated for the remainder of 2025.