Latch Inc · OTC:LTCH
Latch — TS Innovation Acquisitions — SPAC Merger (April 2021)
82 slides from Latch's SPAC merger presentation, Apr 28, 2021
Slide 1: Filed by TS Innovation Acquisitions Corp. Pursuant to Rule 425
Filed by TS Innovation Acquisitions Corp. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934 Subject Company: TS Innovation Acquisitions Corp. Commission File No. 001-39688 Date: April 27, 2021
Slide 2: Disclaimer and Forward-Looking Statements
This presentation (this “Presentation”) is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination between Latch, Inc. (“Latch”) and TS Innovation Acquisitions Corp. (“TSIA”) and relat
Slide 3: Participants in Solicitation and Financial Information
Participants in Solicitation. TSIA and Latch and their respective directors and officers may be deemed to be participants in the solicitation of proxies from TSIA’s stockholders in connection with the Proposed Business Combination. Information about TSIA’s directors and executive officers and their
Slide 4: Latch Q1'21 Business Update
Latch Q1’21 Business Update
Slide 5: Accelerating Bookings and Revenue growth in Q1'21
We have experienced accelerating Bookings and Revenue growth in Q1’21. We expect Q1’21 Bookings to grow 86-88% YoY and Q1’21 Revenue to grow 135-140% YoY. Our accelerating Bookings and Revenue growth during Q1’21 demonstrates the robust market demand for our products and shows the early signs of pos
Slide 6: LatchOS module attach rates and LTV/CAC improvement
Note: Q1’21 results are preliminary and may not reflect actual results; Source: Latch Internal Data; (1) New modules include Intercom, Smart Home, and Package Room (2) CAC includes hardware losses. LTC/CAC without hardware losses improved over 15% In Q1’21, attach rates of non-access LatchOS softwar
Slide 7: Launch of the Latch C2
As a gateway to our broader ecosystem, the C2 delivers enhanced efficiency and added benefits to more properties through our full-building operating system. Our successful retrofits often lead to portfolio-wide adoption for our customers who have experienced the benefits of LatchOS firsthand. C2 inc
Slide 8: NFC unlock on Android
In Q1’21, we launched NFC unlock on Android through an over-the-air update, delivering a much desired feature for the industry and deepening our integrations with the Google ecosystem. As a result of owning the full technology stack - hardware, firmware, and software, we can deploy new features that
Slide 9: Expanded collaboration with AvalonBay
Kanso Twinbrook / Avalon Bay Enabled by Latch M Series & R Series See press release here. “Technology is what will give real estate alpha, it is the differentiator for a well performing organization.” -Karen Hollinger, SVP Strategic Initiatives “At this time, we’re looking at a large volume of build
Slide 10: New leaders and board members
In Q1’21, we welcomed new leaders and board members with decades of experience building world-class organizations to help us continue to scale across revenue and people operations, and new growth categories. Deborah Josephs Chief People Officer Peter Campbell Director Nominee Chris Lee Chief Revenue
Slide 11: Product and technology company with full-stack ownership
From day one, we’ve focused on creating a defining product and technology company that prides itself on its human and intellectual capital. Over 50% of our employees are engineers and we have approximately 90 patents filed or pending worldwide. Since our inception in 2014, we have been dedicated to
Slide 12: Key business metrics of LatchOS
This focus on product experience, through both Latch products and partners, has enabled us to deliver the best-in-class full-building enterprise SaaS platform, LatchOS, and our key business metrics reflect this. Revenue CAGR (2020-2024) Cumulative Booked Home Units1 Source: Latch Internal Data (1) S
Slide 13: Analyst Day presentation follows
We look forward to continued growth, as outlined in the presentation for our Analyst Day, which was filed by TSIA with the SEC on March 30, 2021 and follows here. * Tricia Han and Peter Campbell have been nominated to join our board of directors upon closing of the business combination, subject to a
Slide 14: Analyst Day Agenda
Analyst Day Agenda Rob Speyer, President & CEO, Tishman Speyer Luke Schoenfelder, Co-founder, CEO AvalonBay Customer Story Dhruva Rajendra, Co-founder, CPO Break Prometheus Real Estate Group Fireside Ali Hussain, COO Core Redevelopment Fireside Garth Mitchell, CFO Break Catalyst Innovation Lab Fires
Slide 15: Rob Speyer, President & CEO, Tishman Speyer
Rob Speyer President & Chief Executive Officer, Tishman Speyer
Slide 16: Pro Forma Ownership and Transaction Structure
Pro Forma Ownership Latch - A Unique and Compelling Opportunity. (1) Assumes no redemptions and $40M in estimated transaction expenses. (2) Pro forma cash balance calculated as Latch’s estimated cash balance of $60M as of 4Q20 plus net transaction proceeds of $450M. (3) Assumes 6.76M founder shares
Slide 17: Tishman Speyer - a Global Leader in Real Estate
(1) Gross market value, includes assets where Tishman Speyer provides property management services as of 9/30/20 (2) Includes assets where Tishman Speyer provides property management services, excludes undeveloped land as of 9/30/20 (3) Tishman Speyer non-union employee count as of 9/30/20 Tishman S
Slide 18: Harnessing Technology in a Changing Real Estate Landscape
Pier 4 Tishman Speyer’s Pier 4 – Boston Enabled by Latch M Series & R Series TSIA – Harnessing Technology in a Changing Real Estate Landscape. Technology Driving Change in Real Estate With rapid changes in technology, customers are looking for more from the buildings they live, work, and play in. Ne
Slide 19: Latch - A Perfect Match for TSIA
Latch – A Perfect Match for TSIA. Proven Product & Strong Management Team Tishman Speyer is a Latch customer and investor, and has long believed in the best-in-class, differentiated product and team. Tishman Speyer believes in Latch’s vision to create a more seamless, highly customer-oriented reside
Slide 20: Strategic Partnership With A Global Real Estate Platform
Strategic Partnership With A Global Real Estate Platform To Support Growth. The proposed merger will provide the growth capital for Latch to accelerate product and market expansion and further accelerate bookings, with Tishman Speyer as a strategic partner. TSIA is excited to be a partner for Latch
Slide 21: Latch
LATCH
Slide 22: Luke Schoenfelder, CEO & Co-Founder
Luke Schoenfelder Chief Executive Officer & Co-Founder
Slide 23: Latch leadership team
Thomas Meyerhoffer CDO & Cofounder Ali Hussain COO Brian Jones CTO & Cofounder Garth Mitchell CFO Euan Abraham SVP Engineering Orla Lucey SVP Supply Chain Peter Weiss CREO David Austin SVP Product Partnerships The Latch team has been dedicated to our mission since 2014. Dhruva Rajendra CPO & Cofound
Slide 24: Latch makes spaces better places to live, work, and visit
Latch makes spaces better places to live, work, and visit.
Slide 25: Becoming the singular software interface for spaces
We have the opportunity to become the singular software interface for how people interact with each of their spaces.
Slide 26: Building with the largest real estate operators
And we’re building everything hand in hand with the largest real estate operators in the world, solving their problems at each step along the way.
Slide 27: LatchOS SaaS modules
Over the past 7 years, we’ve methodically developed and deployed LatchOS SaaS modules to provide the critical capabilities for each building. Source: (1) 2021 Latch Internal MSP Pricing -includes current products and services as of Q1 2021 and does not include connectivity and resident experience of
Slide 28: LatchOS drives net operating income for owners
(1) Source: Latch estimates. Depends on average rent, future upsells, and on-site staff Real estate owners use LatchOS to drive net operating income at their properties and portfolios. $$ Increasing revenue. Up to $200-500 per apt per year(1) $$ Reducing expenses. Up to $100-300 per apt per year(1)
Slide 29: Latch Product Universe
Software Services Devices Service Orders Payments Comms Package Room (1) Latch Internal data (2) Includes launched and upcoming products and services on the near term roadmap.. Latch Product Universe(2) LatchOS Latch Services Latch Devices Always evolving, we believe that we have the most complete p
Slide 30: Security, privacy and critical infrastructure requirements
And we’ve done it without cutting corners, meeting the complex environmental, legal, regulatory, and critical infrastructure requirements of multi-family environments. Real time Internet Independence Hardwired Power Independence Security and privacy at the core
Slide 31: Average resident interacts with our app 4.6x a day
Source: Internal Company Analytics data (1) Based on 2020 average usage data (2) Planned roadmap items - not launched for customers today. Once building owners choose Latch, we become a part of each resident’s day. The average resident interacts with our app 4.6x a day (1). Unlocking Smart Home Acce
Slide 32: Net bookings expansion and zero customer churn
(1)-(4) Latch internal data (3) Booked ARR reflects value of annual recurring revenue from Latch software subscriptions that are under a signed LOI and will deliver within 24 months. Net Bookings Expansion 100% Latch has never lost a customer and continues to grow revenue with current customers. We’
Slide 33: Independent, product-driven company going public
We’ve always believed that this market could be best served by an independent, product-driven, company. Source: Latch Internal Strategy We’re reaching a true market inflection point and are going public to deliver growth across new products and verticals for years to come. Tishman Speyer accelerates
Slide 34: AvalonBay x Latch
AvalonBay x Latch Karen Hollinger, Senior Vice President, Avalon Bay Peter Weiss, Chief Real Estate Officer, Latch
Slide 35: Dhruva Rajendra, Chief Product Officer & Co-Founder
Dhruva Rajendra Chief Product Officer & Co-Founder
Slide 36: Recurring revenue software business model
Our focus has always been on making buildings better places to live, work, and visit, and our recurring revenue software business model monetizes the recurring value we deliver.
Slide 37: Enterprise customers, resident onboarding and monetization
Serve enterprise customers. Onboard residents with a great experience. Monetize new enterprise and resident features.
Slide 38: Latch versus traditional vendors
The landscape for building owners to navigate is simultaneously limited and fragmented. Simple Sale One single Vendor. Straightforward Billing One Contract. Unified Management One Interface for Property Managers. Great Resident Experience One single interface for key resident facing interactions(1).
Slide 39: LatchOS common platform and modules
LatchOS is the common platform for each building and we scale our modules to meet the needs of each customer. Source: (1) 2021 Latch Internal MSP Pricing -includes current products and services as of Q1 2021 and does not include connectivity and resident experience offering (2) Q1 2019 to Q4 2020 cu
Slide 40: Increase in Average Revenue per Home Unit
Increase in Average Revenue per Home Unit (ARPHU) Rapid adoption of additional LatchOS modules validates Latch’s product expansion strategy. 4Q20 44% ARPHU increase 30% Percentage of Booked Home Units sold with Intercom or Smart Home LatchOS software modules 44%(1) of our 4Q20 Booked Home Units were
Slide 41: Patented access system as foundation
We started with our patented access system because it’s the common foundation for each stakeholder at a building. We believe our combined hardware, firmware, and software access system has the highest resilience and capabilities of any set of products on the market. Every door can be managed at the
Slide 42: Widening the access moat
And we’re widening our access moat substantially with new products and programs.
Slide 43: The Latch C2
The Latch C2 is one of the most affordable, versatile, and advanced smart lock ever delivered for apartments. Patent pending turn mechanism makes operations smooth even for older doors. Wireless charging ensures unprecedented reliability. Three piece design makes retrofits easy.
Slide 44: Latch Lens program
The Latch Lens program enables traditional lock manufacturers to create locks for markets that we don’t currently serve, driving new LatchOS revenue and market expansion.
Slide 45: Full-building NFC support for Android
We are one of the first companies to deliver full-building NFC support for Android devices, enabling faster and more reliable unlocks and deepening our integrations with Google.
Slide 46: But access has always been just the foundation
But access has always been just the foundation.
Slide 47: Package delivery infrastructure
Latch’s critical infrastructure ensures packages get delivered every time, through direct partnerships with carriers like UPS, remote enablement through the Latch Delivery Assistant, and software tools for each user.
Slide 48: Smart home integrations and sensors
Our integrations with companies like Google Nest, ecobee, and Jasco ensure an amazing smart home experience, while we enable new business models through leak detectors and other sensors.
Slide 49: New resident experience tools
Given our app engagement, we’re excited to offer new tools for residents to have an even smoother experience at each LatchOS-powered property, driving new opportunities for growth and expansion.
Slide 50: ARPHU expansion with extended product suite
From our starting point in smart access we are on track to increase our ARPHU by 57% with our extended product suite of Smart Access, Intercom and Smart Home LatchOS modules. With additional products that are on our near-term roadmap and product launches in 2021 we have the potential to add another
Slide 51: ~$54B annual U.S. market
U.S. residential rental owners and operators alone represent a ~$54B annual market. The 93M apartments in Europe add an incremental ~$90B annual market opportunity. Source: Estimations from a global consulting firm and internal Latch data. Note: TAM only includes products in current financial model
Slide 52: European expansion opportunity
Beyond the North American core market, Latch has the opportunity to accelerate a European expansion with TSIA. We can address another 93M(1) apartments through an expansion into European markets - representing $90B+(2) in annual TAM. Our strategy is to start with a focused approach on the 23.5M(3) a
Slide 53: Expansion into commercial office
Our smart access system is able to serve all doors in a building – from garage to unit entrance – and could solve a lot of the key access problems in large office buildings. Partnering with just our existing and adjacent customers, we believe we could make a compelling move into commercial office. W
Slide 54: A product company delivering new innovations
As a product company, Latch will always deliver new products, features, and innovations for our customers and stakeholders, adapting to the market of today and tomorrow. We’re just getting started.
Slide 55: Prometheus Real Estate Group x Latch
Prometheus Real Estate Group x Latch Tony DeShaw, VP of Facilities and Maintenance, Prometheus Peter Weiss, Chief Real Estate Officer, Latch
Slide 56: Ali Hussain, Chief Operating Officer
Ali Hussain Chief Operating Officer
Slide 57: Robust traction: bookings and booked home units
Source: Latch Internal Data, Latch 2018-2020 Financials; (1) FY 2020; (2) Q1 2019 to Q4 2020 cumulative weighted average on Booked Units; (3) Q4’20 y/y; (4) Bookings represent written but non-binding LOIs from our customers to purchase Latch hardware products and software services, not reflecting di
Slide 58: Diverse customer group of real estate developers
Latch works with real estate developers - large and small. Latch has a diverse customer group ranging from the largest real estate companies in the world(1) to dedicated and passionate local owners. Latch products are installed in 35+ states(1), from affordable housing in Baltimore, to historic buil
Slide 59: Direct relationships with real estate owners
To best serve our customers, we have built direct relationships with real estate owners since the beginning, and believe it is a key part of our differentiation. As a result, we have built a first of its kind direct account-based selling motion, which enables us to speak directly to customers, and d
Slide 60: Account-based sales coverage
Our selling professionals are assigned to specific accounts and incentivized to grow with their accounts. Each rep is assigned Key, National, or SMB accounts, with larger more complex accounts getting more focused, dedicated coverage. This structurally incentivizes our selling professionals to learn
Slide 61: Installers and service provider partners
Though we’ve taken a different approach to working with customers, we’ve also developed working relationships with the industry’s best installers and service providers. This has allowed us operational lift including the critical installation and in-field support for us to scale without a ton of over
Slide 62: Sales cycle and prepaid software contracts
This not only enables us to upsell and provide more value for the customer, it also creates high revenue visibility. Our strong, direct relationships with the customers also help facilitate repeat purchases and future upsells. Latch talks to customers early in their construction or renovation proces
Slide 63: Expanding ecosystem further differentiates LatchOS
Software Services Devices Service Orders Payments Comms Package Room (1) Latch Internal data (2) Includes launched and upcoming products and services on the near term roadmap.. Latch Product Universe(2) LatchOS Latch Services Latch Devices As the product ecosystem expands, we further differentiate L
Slide 64: Growth during the pandemic year
(1) Latch internal data In a pandemic year, which we ended with fewer selling professionals than the year before, we still continued to grow.(1) COVID-19 accelerated digital transformation efforts across all industries, real estate included. 2020 was a challenging year, which required us to make tou
Slide 65: New leaders on the revenue team
We’ve recently added world class leaders to our revenue team. Chris Lee Noelle Uglesic Rob Stanger Adam Sold Chief Revenue Officer VP Revenue Strategy VP Revenue Operations & GTM Strategy GM - Channel and Alliances
Slide 66: Sales and revenue organization
Our organization is ready to scale our sales and revenue operations. Chief Revenue Officer US Sales International Sales Channel and Alliances Operations and Execution GM - Canada US Key Accounts East Region West Region Central Region Channel Program Enablement
Slide 67: Investment in revenue leadership and pipeline
Though we have already seen demand surge in the last few quarters, our added investment in revenue leadership and multiple-building deals in pipeline make us extremely bullish on our sales outcomes, which we expect to become increasingly clear as the pandemic further fades and our new sales infrastr
Slide 68: Core Redevelopment x Latch
Core Redevelopment x Latch Gavin Railing, Regional Property Manager, Core Redevelopment Peter Weiss, Chief Real Estate Officer, Latch
Slide 69: Garth Mitchell, Chief Financial Officer
Garth Mitchell Chief Financial Officer
Slide 70: Key takeaways
Strong financial foundation and unit economics position Latch for sustained efficient growth. Large and growing market opportunity with multiple reinforcing growth vectors and increasing efficiency. Strong post-merger balance sheet with several organic and inorganic opportunities to extend market le
Slide 71: Annual Historical Financial Results
Annual Historical Financial Results(1) Source: Latch 2018 to 2020 Financials (1) 2018 is unaudited results (2) Booked ARR is defined as the cumulative value of annual recurring revenue from Latch software subscriptions that are under a signed LOI (3) Net revenue is net of HW and SW promotional disco
Slide 72: Enterprise SaaS unit economics: LTV/CAC
Source: Latch internal data Our recurring enterprise software solution is highly profitable and sticky. Even if we include hardware losses - which we view as an investment cost to acquire these sticky software contracts - we have an attractive LTV / CAC of 4.0x. Design, sourcing, and manufacturing e
Slide 73: Customers prepay software contracts upfront
97% of our customers elect to prepay their full 6yr+ software contract value upfront on Day 1. This creates highly attractive upfront profitability and cash efficiencies, giving us significant flexibility to price our hardware to accelerate market share gains. For our end market, upfront payment is
Slide 74: Investment in Research and Development
43% of 2020 Operating Expenses were invested in Research and Development. These investments drive sustained product differentiation and funded the development of our planned 2020 and 2021 new product releases. Source: Latch 2018-2020 financials
Slide 75: Financial projections 2020A-2025E
Innovative enterprise technology company, with large and growing market opportunity, and multiple reinforcing growth vectors. Source: Latch 2020 Financial Results and 2021-2025 Financial Projections (1) Booked ARR is defined as the cumulative value of annual recurring revenue from Latch software sub
Slide 76: Reinforcing growth vectors
Reinforcing growth vectors. Unit growth Revenue per unit growth Selling deeper into customer portfolios Signing new customers New verticals and geographies Per unit hardware revenue growth Per unit recurring revenue growth
Slide 77: Increasing efficiency
Optimized distribution for better service and improved contribution margin Increasing efficiency. Efficiencies drive increased profitability and share gains Design, sourcing, and manufacturing efficiencies Larger bundles increase value delivery and profitability
Slide 78: Detailed Transaction Overview
Pro forma ownership @ $10.00 per share(4) Proposed transaction terms $450M net cash proceeds inclusive of PIPE proceeds and transaction expenses(1) $190M of PIPE commitments before transaction announcement Detailed Transaction Overview Existing Latch Rollover Equity 64% TSIA Public Shares 19% TSIA S
Slide 79: Catalyst Innovation Lab x Latch
Catalyst Innovation Lab x Latch Stephanie Fuhrman, Head of Innovation, Catalyst Peter Weiss, Chief Real Estate Officer, Latch
Slide 80: Management Q&A
Management Q&A LATCH Latch Confidential, © Lateh, Ine
Slide 81: Appendix
Appendix LATCH Latch Confidential, © Lateh, Ine
Slide 82: Preliminary Non-GAAP Reconciliations
Source: Latch 2018-2019 Financials ($ in millions) 2018A 2019A 2020A Net loss ($25) ($50) ($66) Depreciation and Amortization 0 1 1 Interest Expense (Income) 0 0 3 Income tax provision (benefit) 0 0 0 EBITDA ($25) ($50) ($61) Adjustments: Loss on Extinguishment of Debt $1 $1 $0 Loss (Gain) on FV of
TS Innovation Acquisitions — SPAC Merger (April 2021) on 6ix