Hello. Thank you for standing by, and welcome to Latch second quarter earnings conference call. At this time, all participants are in a listen only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star one on your telephone. Please be advised that today's conference may be recorded. If you require any further assistance, please press star zero. I would now like to hand the conference over to your speaker today, Sean Hannon, Investor Relations. Please go ahead. Thank you, operator. Good afternoon, and thank you for joining us today to review Latch's second quarter 2021 financial results. With me on the call today are Luke Schoenfelder, Chief Executive Officer, Co-founder, and Chairman of the Board of Directors, and Garth Mitchell, Chief Financial Officer. After prepared remarks, we will open up the call for a question and answer session. During this call, we may make statements related to our business that are forward-looking statements under Federal securities laws. These statements are not guarantees of future performance, but rather subject to a variety of risks and uncertainties. Our actual results could differ materially from these expectations reflected in any forward-looking statements. Forward-looking statements made today speak only to our expectations as of today, and we undertake no obligation to publicly update or revise them. For a discussion of material risks and other important factors that could affect our actual results, please refer to the Risk Factors section in our SEC filings available on the SEC's EDGAR system and our website, as well as other risks and other important factors discussed in today's results. Additionally, non-GAAP financial measures will be discussed on this conference call. Please refer to the tables in our earnings release and the investor relations portion of our website for reconciliation of these measures to the most directly comparable GAAP financial measure. With that, I'd like to turn the call over to Chief Executive Officer, Luke Schoenfelder. Luke? Thanks so much, Sean, I'd like to start by thanking all of you for joining us today on our second earnings call as a public company. Latch began trading as LTCH on Nasdaq on June 7th. We're very grateful to our longstanding and new stockholders, employees, customers, and partners for making this possible. We are also very excited to share our results for the second quarter. In Q2, our total bookings grew substantially by 102% YoY to $95.8 million, an acceleration from 89% growth in Q1. Our attach rates of Smart Access LatchOS software modules increased again from 81% just a quarter ago in Q1 to 90% in Q2, which gives us continued confidence that our robust 2021 product roadmap and release schedule will drive high adoption and sustain the lifetime value expansion. Despite unprecedented supply chain constraints and construction delays due to labor and material shortages, we continue delivering for our customers, growing our revenue in Q2 by 227% YoY up to $9 million, a sharp acceleration from 143% YoY growth in Q1. Garth, our CFO, will talk in a few moments to Q2 results in detail. As this is only our second earnings call, we'd also like to take a moment to remind everyone about who we are, what we do, our value proposition, market opportunity, and business model. I am one of the co-founders of Latch, and beginning in 2014, we embarked on our journey to make buildings better spaces to live, work, and visit, creating a product company focused on the biggest challenges that we saw in the market. From the beginning, we recognized the powerful opportunity to transform the world's oldest subscription product, renting a space, and the world's largest asset class, real estate. Our flagship product, LatchOS, provides real estate operators, residents, and service providers the capabilities they need to solve the problems they face every day in their spaces, and we provide tailored solutions through our LatchOS modules: Smart Access, delivery and guest management, Smart Home, connectivity, and personalization and services. Our average building customer installs Latch and partner devices across new and existing buildings in their portfolio, and then pays Latch between $7 and $12 per apartment per month for the software features that they need. This range is expected to continue to increase as we solve more customer problems with future products. Typically, our customers prepay for their LatchOS software contract for a period greater than six years, which benefits them in their ability to capitalize the expense, while also benefiting us with powerful cash generation. Once installed, Latch App users interact with our app an average of 4.6 x per day. This engagement is something we're super proud of, and we're excited to continue to expand the availability of LatchOS to more users and deepen engagement with each stakeholder that interacts with our products. As we look forward, we want to highlight some of the growth pillars that make us most excited. First, the market for an apartment building operating system is massive, with an estimated 47 million rental homes in the U.S. alone, representing a $54 billion TAM, while Europe adds another $90 billion TAM. Second, LatchOS is defining the full building operating system category by continuing to develop innovative products that are constantly improving and evolving. Our products both enhance revenue generation for our customers, as well as reduce their operating expenses. Our robust and modular system architecture also allows us to rapidly innovate on the platform, ensuring that the value that LatchOS delivers to its customers will grow and can adapt to customer needs more rapidly than other products in the market. Third, LatchOS is integrated with the best partners in the market, including Google Nest, Apple, Ecobee, Yardi, Entrata, RealPage, and more. Our focus on the highest levels of user experience, data security, and user privacy provides us the opportunity to partner with the highest quality companies and products. All while pushing our total ecosystem forward. Fourth, this robust platform approach allows us to deliver new products and features to take advantage of the rapidly growing and evolving market. Because of the strong foundation that LatchOS provides, we can expand deeper into existing customer portfolios with new and existing features, as well as expand into adjacent markets, such as the commercial office market space, which we're entering starting with our pilot deployment sites that include the Empire State Building, Rockefeller Center, and Brookfield Place. Fifth, since our inception in 2014, we've had incredibly strong customer traction, demonstrated by our zero churn rate and high lifetime customer value, both of which were further exemplified in our second quarter financial results, again, which Garth will discuss in more detail shortly. Now I'd like to turn to a few exciting product and marketing updates specifically from Q2 that we believe demonstrate our commitment to serving our customers with an ever-evolving set of products and experiences, all while enhancing our broader ecosystem and driving long-term growth. In Q2, we expanded our property management software integrations, adding both Yardi and Entrata to LatchOS. This follows our previous integration of RealPage, resulting in LatchOS now integrating with the three largest EPMS providers in the U.S. With LatchOS's growing roster of EPMS integrations, property managers can save, on average, over four hours of their time for every 100 residents, yielding ongoing net operating income savings for our customers across asset classes and markets. In Q2, we also officially launched our strategic direct sales and deployment efforts, which allow us to provide a unified experience and a single point of contact for customers across fulfillment, installation, support coordination, and third-party vendors. Besides the critically improved customer experience for our key and enterprise accounts, direct sales will drive long-term improvements to hardware and software margins and give us more direct control over the customer relationship for renewals and upsells of existing and future products. This quarter, in addition to other deployments, we took our first full building live successfully with AvalonBay through this new direct deployment model. We also hired Justina Omokhua as our Chief Marketing Officer, furthering our investment in the expansion of our enterprise customer base and the ways we serve the personalized needs of individual users on our platform. Justina's marketing career has included experience at some of the world's most powerful brands, and her recent roles include senior vice president of brand marketing at Endeavor and global head of content and lifestyle strategy at Apple. Reflecting on our second quarter results, the first theme is that our strong and expanding product offering is driving a very powerful bookings engine that exceeded even our internal expectations for the quarter. Bookings growth specifically accelerated in Q2 to the 102% YoY growth I stated earlier, which is a powerful testament to increased product category adoption, demand from our customers, and accelerating sales velocity. Let me take a moment to illustrate our momentum with a couple of Q2 vignettes that reflect how we go to market and how customers find value working with Latch. In Q2, we welcomed another one of the largest owners of apartment buildings in the U.S. as a new customer with a direct deployment deal including LatchOS Smart Access and Smart Home modules. This customer chose Latch due to LatchOS's high uptime relative to another vendor it had been using, our industry-leading engagement levels, our automation benefits for their property management teams, and our deep integrations with EPMS platforms. We also signed our second deal with a preeminent Chicago developer for the remainder of their residential portfolio. This customer had already installed Latch in one retrofit and one new building in their portfolio and is currently completing a third building with Latch as we speak. Now, having experienced firsthand the functionality, reliability, and customer demand for Latch, this customer has come back and now signed up the remainder of their portfolio with Latch. We're excited to continue to build out our relationship with this customer with new deployments and products to come. We're also very excited to welcome a large mixed-income housing developer who focuses on the acquisition, redevelopment, and management of affordable housing projects in the Northeast. This customer was initially looking for just a Smart Access product to reduce their operating expenses, and they chose Latch based on positive feedback regarding tenant experience, functionality, and operating cost reduction from other reputable players in the industry. Now they've signed up a mix of retrofit and new projects with a variety of LatchOS modules, including Smart Access, Smart Home, and Latch Delivery Assistant. Beyond just these examples, the second theme is our durable and sustainable revenue growth, driven by, again, that strong bookings engine. We experienced significant revenue acceleration to 227% YoY growth in the second quarter. We delivered this strong growth without an increase in ramp sales capacity and while dealing with the direct and indirect effects of global supply chain shortages and construction delays that are emerging as a result of the global pandemic. We're particularly proud of our engineering and supply chain teams, as these teams have continued to deliver our products and serve our customers despite the direct headwinds caused by these challenges. We're also proud of our direct deployment teams, who despite significant indirect construction material and labor shortages, delivered in Q2, working hand in hand with our customers to ensure that they got as many of their spaces up and running with LatchOS as possible. Setting aside our strong Q2 performance, the most powerful driver of our business remains the secular shift towards technology in the real estate industry, which has been woefully underserved by technology companies and which we believe has never been served by a product company approach like ours. A lack of focused innovation for real estate has led to exceptionally low technology penetration rates in what is the world's largest asset class. This historic underutilization of technology is a long-term driver of our business, and we remain steadfast in our focus on delivering the product and experiences our customers and their tenants deserve right now and going forward, layering in richer and more valuable experiences in every space where we operate. I've never been more excited about what we're going to continue to deliver to the market. With that, let me turn the call over to Garth Mitchell, Latch's CFO. Garth? Thanks, Luke. It's great to connect with our existing and prospective shareholders in Latch's second public earnings call. The second quarter was a record quarter for the company once again, and I'm excited to share these results and provide an update on our third quarter and fiscal year 2021 guidance. Before diving into our financial results, I wanted to first provide a reminder of the important aspects of our business and revenue model, as some of you may be new to the Latch story. Since our launch in summer 2017, we've not lost a single customer, leading to 100% gross dollar retention. Our direct sales model enables high repeat customer bookings, larger deal sizes, and strong upsell and cross-sell activity, resulting in growing customer value. Our go-to-market model and long software contract terms drive remarkable sales and marketing efficiency, as measured by our LTV to CAC ratio. We've previously stated that our 4th quarter 2020 LTV to CAC was 6.8x or 4x after factoring in initial hardware costs. Strong new product attach rates in the second quarter of 2021 of 90% continue to expand our LTV to CAC ratio. Note that LTV to CAC does not take into account upsells or renewals, which leaves room for expansion on the initial ratio. When we win a new account and the customer begins to deploy Latch across their portfolio, we see significant LTV expansion as sales and marketing expenses tend to be lower on future deals or new product upsells. Furthermore, scale efficiencies in next generation access products improve our hardware profitability. Because we consider hardware losses to be a cost of deploying our highly sticky, high-margin software products, improvements in hardware profitability effectively lower our customer acquisition costs. Year to date, these dynamics have allowed us to continue to drive bookings growth while improving hardware profitability, despite lingering COVID-related global macro environment volatility. Equally important, Latch has very compelling upfront unit economics. On average, software contracts are more than six years in length, and around 97% of our customers elect to prepay their full contract on day one, which creates highly attractive upfront cash profitability and efficiencies. Before diving into our second quarter results, I thought it might be helpful to walk through our sales process and give some color on the seasonality in our business. We view bookings as the primary measure of customer adoption of LatchOS and Latch sales velocity. Bookings represent signed customer LOIs to purchase Latch hardware and software services, not reflecting term or promotional discounts, with a target delivery date no later than 24 months following signature. Bookings are the sum of the total hardware revenue commitment and the total software revenue commitment over the total life of the software agreement. Each booking is associated with a specific building, including pricing for the specific software and hardware products for each unit, and includes explicit target delivery dates upon which the customer expects delivery and deployment. The total hardware revenue commitment is recognized net of promotional discounts as GAAP hardware revenue at the time of shipment. Software revenue is recognized net of promotional discounts over the course of the contract, starting from software contract signature through contract end, and thus, there is a greater lag between software bookings and the recognition of GAAP software revenue than with hardware bookings to GAAP hardware revenue. While a deal's target delivery date is no further out than 24 months, the average initial delivery timelines range from six to 18 months. Retrofit deals tend to fall on the shorter end of this scale, while new construction deals with bigger customers, or larger full portfolio deals tend to fall on the longer end of the scale due to extended construction timelines and increased complexity. As installation timelines are largely dependent on real estate schedules and activity, we do experience some seasonality in the business. Most notably, delivery volumes in the first and fourth quarters tend to be relatively lighter than the second and third quarters, due primarily to construction seasonality in colder climate zones and slowdowns due to end-of-year holidays. We also note that some quarters can be back-end loaded, which is a dynamic we experienced in the second quarter this year. Macro events can delay our delivery timelines. For example, construction site shutdowns during the 2020 pandemic quarantines extended our average delivery timelines. These delays tend to be short-term drivers as we saw catch-ups in delayed deliveries as construction sites reopened early in 2021. Post-pandemic macro normalization has been choppy as we began to see June 2021 construction materials and labor shortages drive similar delays to what we saw in 2020. From talking with our customers and monitoring industry data, we are confident these are only short-term drivers like those experienced in 2020. As we continue to scale the business, we expect to see some lumpiness in bookings as we are increasingly closing larger multi-building deals that can have an outsized impact on the quarterly bookings cadence. Let me turn to our second quarter results. I'd like to quickly point out that I'll be discussing some non-GAAP metrics going forward. A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in the earnings release we issued earlier today. For the second quarter, bookings were $95.8 million, up 102% YoY. Growth in cumulative booked home units also accelerated to a total of 451,000 units, up 108% YoY. Finally, booked ARR grew to $48.8 million, up 122% YoY. Booked home units represent the total number of apartment units or similar dwellings installed cumulatively, as well as committed to be installed with Latch products. Booked ARR is defined as the cumulative value of annual recurring revenue from Latch software subscriptions that are under a signed LOI. The acceleration in growth across all bookings metrics is reflective of increased adoption of Latch's unique product offering. Second quarter sales and marketing expenses grew 77% YoY as we began to invest in sales capacity to meet accelerating growth in customer demand and take advantage of our huge untapped market. Importantly, we drove this accelerating growth with no YoY growth in ramp sales capacity, which demonstrates the robust and growing market demand for our products. We saw attach rates of non-Smart Access LatchOS modules grow to 90% in the second quarter, a 9 percentage point increase versus attach rates of 81% just a quarter ago. This increase demonstrates robust customer demand for incremental LatchOS modules as they become available, and support increased investments in R&D, which will accelerate the time to market of several new modules. We expect these modules will drive higher customer ROIs and accelerate customer LTV expansion. Now turning to revenue. We're pleased to announce revenues of $9 million in the quarter, up 227% YoY. We're very proud of this result, as this again demonstrates the strong customer demand for our products. Revenues were at the lower end of our second quarter guidance range as we began to see some of the impact of labor and building material shortages at the end of the quarter, most notably in the month of June. Given our products are typically among the final materials installed before completion in construction and related upgrades, completion delays can have an outsized impact in particular periods. We delivered a strong improvement in hardware margin to -12% for the second quarter, compared to -65% in the second quarter of 2020, and up from -20% a quarter ago. This was largely driven by scale efficiencies and more cost-effective next generation Access products. Our priority remains meeting our customer needs, and we are extremely proud of our differentiated ability to simultaneously deliver accelerating second quarter revenue growth and greater than 5,000 basis points of YoY hardware margin improvement during these unprecedented global supply chain and electronic shortages, which have impacted almost every company that distributes physical products. Our global supply chain team is tactically sourcing components to meet our customer demand, enabling us to continue to drive greater than 100% YoY revenue growth. Though this macro environment may slow or erode some of our expected margin improvements for the remainder of the year, we have high confidence that this temporary market dynamic will not impede long-term hardware margin improvements. Our software gross margin was 90% for the second quarter, a marginal difference compared to 93% in the second quarter of 2020. We believe these software margins continue to demonstrate the strength of Latch's business model and highlight our scalable and modular software stack, which enables all of LatchOS functionality, including integrating first and third-party hardware devices. Over time, we expect software revenues to increase as a percentage of our revenue mix, a key driver for long-term gross margin expansion. Operating expenses were $22.7 million in the second quarter, up 61% YoY compared to a 227% YoY increase in second quarter revenues. Adjusted EBITDA in the second quarter was a loss of $17.4 million, as compared to a loss of $13.4 million in the second quarter of 2020. Net loss was $40.1 million in the second quarter of 2021, as compared to a loss of $15 million in the second quarter of 2020. The primary reason for the gap between Adjusted EBITDA and net loss was an increase in non-operating and non-recurring expenses, largely related to the closing of our merger and public listing. Turning now to our balance sheet. As of June 30th, we had cash and cash equivalents of $472 million, compared with $60.5 million as of December 31st, 2020. The increase in cash and cash equivalents was primarily due to proceeds received in connection with the closing of the business combination with TS Innovation. At the end of the second quarter, we had debt of $800,000. Now let me turn to guidance. Because of the accelerating growth and demand for our products and our strong year-to-date execution, we are now raising our full year total bookings expectations to the range of $325 million-$340 million, reflecting 97%-105% YoY growth, compared to our previous guidance range of $290 million-$325 million. For the third quarter, we are now raising our total bookings expectations to the range of $85 million-$90 million, reflecting 149%-164% YoY growth. Our bookings are the single best indicator of market adoption of our products and the performance of our business, and we are excited about the long-term implications of such strong year-to-date bookings outperformance. While we still expect revenue growth of well over 100% YoY in the second half of 2021, we are adjusting our guidance to reflect the construction industry supply and labor shortages we saw in June. Industry data suggests that the industry could experience some relief before the end of the year. We are currently assuming the construction delays persist for the remainder of 2021. As such, we now expect full year revenue in the range of $38 million-$42 million, reflecting 110%-133% YoY growth, compared to the prior range of $47 million-$51 million. We expect third quarter revenues to be in the range of $10 million-$11 million, reflecting 96%-116% YoY growth. We delivered north of 5,000 basis points of hardware margin improvement in the second quarter in an accelerating global electronic supply chain shortage, which highlights the long-term drivers of hardware margin improvement. Despite these electronic shortages, we will continue to prioritize meeting customer demand for our products and will tactically source supply to maximize the delivery of our long-term high margin software agreements. We assume this macro disruption will persist for the remainder of the year, impacting hardware margins, which, in combination with our updated revenue guidance, will impact our forecasted EBITDA for the year. We now expect full year 2021 Adjusted EBITDA losses to be in the range of $115 million-$90 million, as compared to the prior range of losses of $95 million-$75 million. Third quarter Adjusted EBITDA losses are expected to be in the range of $32 million-$28 million. The long-term drivers of hardware margin expansion discussed earlier remain in place despite short-term macro disruption. In summary, we're very pleased with our performance in the second quarter and look forward to continuing to deliver long-term sustainable growth. We remain proud of our team's ability to continue to deliver such high growth rates despite the volatile macro environment. While supply chain issues have marginally affected our short-term results, we have seen a huge increase in customer demand, as shown by our unprecedented second quarter bookings of $95.8 million. With the massive and growing market opportunity ahead of us, incredible products in market and in development, and a strong market leadership position, we believe we are uniquely positioned for sustained long-term success. With that, we will now open the call up for questions. Operator? Thank you. As a reminder to ask a question you only need to press star one on your telephone. To withdraw your question press the pound key. Please stand by while we compile the Q&A roster. Our first question comes from Rod Hall with Goldman Sachs. You may proceed with your question. Hi, team. This is Max Gamperl on for Rod. We have a couple of questions. First one is on the mix of your booked units this quarter, and particularly looking at multifamily retrofits. It looks like you've booked about 82,000 new units this quarter, and we understand that retrofits are very important for Latch's expansion in the future, and it'd be good for us to get a bit of a sense for the ability for Latch to deploy at retrofit buildings. Maybe you can even give us a percentage of booked units that came from retrofits this quarter, and maybe even touch on the market share of new builds. Then I have a follow-up. Garth, I don't know if you want to speak to that. I'm happy to take a first pass, and Garth, you can fill in for me at any point there. Hey, thanks so much for the question. We are not, at this point, breaking out retrofit versus new construction data in the quarter. We think it's important, but what we've said before is that we're trending towards a 50/50 mix between retrofit and new construction. Because of the large deals potentially skewing the mix, I think the best way to think about it is sort of trending towards 50/50 between the two at any given period of time. We're really excited to see super strong retrofit growth, some of which we highlighted in the customer vignettes. We're not going to break out specifics at this point in time. I don't know, Garth, do you have anything to add to that? Max, it's a good question. We're not providing the specific mix of retrofit and new construction in the quarter. Like Luke said, historically, we have actually been closer to 50/50 in the mix. What I would note is that we've seen a very large percentage of our both deliveries and bookings in the C2, which is a product that was built specifically to serve customers that have older doors that are common in retrofit environments. We continue to make great progress on deploying successfully into retrofit environments, and we look forward to updating you on our progress there on our next earnings call. Okay. Great. Thank you. As a follow-up, just on the supply shortages, did the supply shortages mainly affect your customers, or did they also affect the manufacturing of and sourcing of your products as well? Yeah, I can take that one, Max. Thanks so much for the question. We have continued to be able to deliver all of our products. There are instances, specifically towards the end of the quarter, where it cost us more to purchase components to make our products. Being in the position that we are, and having so invested in our supply chain relationships, we've been able to continue to deliver when so many other companies have not been able to. We see this, again, as a real source of competitive differentiation going forward. Worth noting, the National Multifamily Housing Council did a survey in June, and the construction material shortages are affecting 86% of NMHC surveyed members. I think that gives you kind of a good sense of where the shortages are really hitting most specifically for the market right now. Great. Thank you so much. Thank you. Our next question comes from Mark Schappel with Benchmark. You may proceed with your question. Hi. Thank you for taking my question, and congratulations on the good bookings print. Luke, just want to dig a little bit deeper into the supply chain issues and construction delays that you began to see in the quarter. Just to build on the earlier question, are you seeing the supply chain issues with respect to pretty much all of your products, or is it just limited to certain ones? Yeah. Mark, to be very specific, we look at on the direct side. Appreciate the question. Thank you so much. We look on our products and our ability to manufacture our products. We have been able to continue to manufacture all of our products. There have been increased costs in some instances, which Garth referenced during his remarks. We foresee increased costs to deliver our products throughout the year. Our number one priority is continuing to deliver for our customers, which we've been able to do. The delays and construction material shortages that are broad across the industry are more indirectly affecting us because they're affecting our customers. To give a very tangible example, because our products are often some of the last products to be installed before a person moves into the space, if there is a shortage in paint or there is a shortage in painters, that actually can affect the delivery timeline in this pandemic pocket. We've really been focused on making sure we can always deliver for our customers and trying to support them through any of the shortages that they're facing. Our move into direct deployment couldn't have come at a better time because now we're actually able to help with some of the sourcing challenges and use our supply chain and operational prowess there to help even some of our customers deliver spaces that perhaps they wouldn't have been able to otherwise deliver without those Latch products and Latch direct deployment. Yeah, that's helpful. Thank you. Then Luke, just want to get a few more details around some of the direct sales efforts in the quarter. Granted, you're building up that organization, it's still very early, but maybe you can just give us a few more details there and also remind us of your plans for headcount growth this year in that group. Absolutely. At the highest level, the way that we think about our sales organization is we look at the top 1,000 accounts which represent about 60% of the market, and we have an account-based selling motion that targets those top accounts. We, since in the quarter, have not actually had any growth in ramped sales capacity. While we've added an incredible team under Chris Lee as our Chief Revenue Officer who joined the company in Q1, none of the folks that have joined the team since his arrival and even with his arrival are ramped. Our results that we delivered in Q2 were without any growth in ramp sales capacity. We're extremely excited for that ramp sales capacity to come online and to be able to scale throughout the year and beyond. Garth, have we broken out specific headcount there? No, we haven't. Mark, I can give you a little bit of background on this. We have transitioned parts of our operations organization to focus on managing direct deployments for our customers. We're building the organization off of a base that exists already. We expect to see meaningful headcount growth in that department. We are not giving department by department headcount growth targets. You should expect to see more Latch Pros being supported by Latch field installation managers who are going to manage everything from quoting all the way down to ensuring that the deployments happen successfully at the building level for our key and enterprise account customers who elect to have us manage the deployment process for them. Okay, thanks. One final question, Luke. With respect to the recent entrance into the emerging commercial office market, could you just give us a quick update on the pilots for Latch Visitor Express and maybe the progress you're seeing or where they're at? Yeah, absolutely. We're moving forward at exactly the sort of pace that we are anticipating. We'll have more announcements as those buildings are officially announced as going live. We're very excited and I can tell you that I was walking through a turnstile in our office yesterday using the installed Latch products. We're very excited about being able to deliver that, and we'll of course give official updates as those products become commercially available to the commercial office market. Thank you. Thanks, Mark. Thank you. Our next question comes from Stephen Sheldon with William Blair. You may proceed with your question. Hey guys. Thanks for taking my questions. Wanted to ask two questions about the updated 2021 guidance. Clearly some mixed trends there. One, can you share any more detail on where booking expectations have been exceeding your expectations? Is it traction with new developments or retrofits or the better module attach rates you noted? Two, on the push out in revenue generation due to delays, has that mainly been in new developments or have there been any notable delays or push outs in retrofits going live too? Great questions. I'll start with the second one first. What we, again, going back to that NMHC, National Multifamily Housing Council survey from June, 47% of members were experiencing labor shortages, and 86% were experiencing construction material shortages. For us, even when we're installing in a retrofit environment, there need to be people to install the product and to retrofit the units. Those shortages are definitely affecting both. It's not just a new construction challenge. On the, I guess, broader market that we're seeing there, and what we're seeing on the booking side, it's very broad based. We're very excited to see 90% attach rates of two or more LatchOS modules. Just as a reminder, that's up from in Q4 of last year that was 44%. Over doubling in less than a year. That's obviously very exciting. I think it speaks to the broader needs of our customers, but also the broader problems that we're solving for them, which is super exciting. We're just seeing broad-based growth across retrofit and new construction. We've said before, sort of hover around 50/50, and we're excited to continue to see that growth in software adoption across the board, and also that uptake in both retrofit and new construction. Yeah, Stephen, let me just add something there. I point you back to some of the customer stories that we provided in the prepared remarks. What we're seeing from a lot of our customers is that they have both retrofit and new construction opportunities in their portfolios. The crux of a lot of the activity that we saw in the second quarter resembled some of the stories that we talked about earlier, where a customer has installed a building or two, had a good experience, realized the ROI of LatchOS in their buildings, and have decided to deploy Latch more broadly into their portfolio, oftentimes taking more incremental LatchOS modules. I think I understand the question, and we're excited to talk more about the development of Latch's direct deployment capabilities for the retrofit market. I'd urge you to think about this more at the customer level and recognize that customers think about customer portfolios include both retrofit opportunities in existing buildings and opportunities with new construction. We are going to grow with our customers' growth as they, again, experience the ROI that LatchOS can provide to their buildings. Got it. Makes sense. Just, I guess one follow-up. I think on the installation side, I wanted to kind of ask about capacity there. I know you have licensed and kind of trained contractors. I think you call them the Latch Pros. But as we think about maybe moving past the supply chain issues, and maybe construction getting completed, I guess what's your capacity like on the installation side with the Latch Pros and with channel partners? Yeah. What's interesting about that is the Latch Pros program is something that the market is really excited about. Our customers really want to be served holistically, and this allows us to really provide a better experience for the customer, which is really important. Also it allows us to have even better margins on our installed products, which is super exciting for us. In terms of capacity, if you think about the labor base that we're working with, we have a very differentiated brand and a very exciting brand. Our ability to attract the best talent to work with Latch products is very high. That initially started, and we were aware of that as folks from the industry continued to join our team. Now as we go and we build out our Latch Pro network, people are just really excited about our products and are excited to get to be associated with Latch and taking on that Latch Pro mantle. Just to add on that. The development of our Latch Pros program is one component of an evolution of the way Latch interacts with channel partners of all kinds. We are not just going to them and asking exclusively to do the direct deployment work for Latch on Latch's direct sales. We're also offering them incremental incentives, co-marketing opportunities, and all kinds of other opportunities for them to really grow their businesses with Latch. It is an output of us building a deeper relationship with our nationwide network of Latch Pros that we think will help us meet our customers' demands for direct deployment opportunities. Also use those channel partners' demand to drive more broad demand for LatchOS and deeper deployments into our customer portfolios. Great. Thanks for taking my questions. Thanks, Stephen. Thank you. Our next question comes from Benjamin Sherlund with Cantor Fitzgerald. You may proceed with your question. Hey, guys. Thanks for taking my question. I'm kind of thinking a little bit longer term. With regards to the residential experiences, how big of an install base do you think you have to see before you're able to really start monetizing there? Hey, Ben. Thanks so much for the question. Yeah, I think what we're really focused on is making sure the experience is really fantastic when we begin that monetization. In my mind, that sort of minimum threshold was about 100,000 units. We're very excited to be in a position now where we can really start to look at those opportunities. As we've said before, we are continuing to be excited about the products we have on the roadmap to deliver differentiated experiences for the resident, a better product experience for the resident, a better service experience for the resident, and monetize that. We don't have any specific updates to make on this call. We are still making progress on the product side and are really excited to be able to launch those features for our residents. Okay, great. Thank you. Thank you, Ben. Thank you. Our next question comes from Joe Vruwink with Baird. You may proceed with your question. Great. Hi, everyone. Maybe to begin, I was hoping just to get a little more detail on the quarter itself. It seems like the upside in booked revenue, there was definitely a unit component, healthier sequential growth in booked units. I'm just curious if there were any particular drivers to that. Then maybe from a seasonality standpoint, because I think the guide probably entails a sequential step down in units. Is that just the normal course of business, or is anything else happening in the second half? I'll take this one. Joe, it's good to hear from you. On the second part, our guidance range assumes that we see that the macro disruption that we saw in June that persisted into July persists for the remainder of the year, and our ranges account for a scenario in which there's further macro disruption. If to the extent that the macro environment improves at all, I would expect meaningful outperformance on the guidance ranges that we've just provided. The fourth quarter, as we've discussed previously, is one of the seasonally lower demand quarters for Latch, given a lot of our customers are on holidays, but we still expect to be able to deliver outperformance relative to these ranges should we see any improvement in the macro environment. Okay. Maybe just more from a high level. In thinking about the financial projections Latch provided at the start of the year at this point, it does seem like quite a bit has changed about the business. A substantial number of new software products have been launched. You referenced the C2 earlier, so that's retrofit, but I think it also has a slightly lower price point in the grand scheme of your product lineup. I'm just wondering, as you think about the projections and you start to appreciate, in some cases, the unit opportunity seems better because of retrofits. The price point with software and getting attach rates is higher, so that's good. There's maybe some offsets in that, retrofits, maybe lower price point on hardware. Where I'm going with this is, as you think about, again, just high level, how do you think the business is tracking relative to some of those projections, and where might there be slight deviations, either good or bad? Thank you so much for the question. I think what's important to emphasize, as you did, is we're delivering a totally new product ecosystem into a massive market in a way that hasn't been done before, and there's incredible opportunities all across the board. You referenced several products that we announced in this year, sort of post-announcing that we were going to go public. We typically have a two-year sort of product development cycle, if you think about that, the products that we're going to deliver next year were planned a very long time ago. The efficiencies that we've got from the C2 were two years before we announced them. We saw and anticipated many of the opportunities that we're capturing right now and also some of the challenges. If you look at the C2 design, it was really about retrofit, and it was really about taking the best aspects of our earlier products and being able to provide an even higher functionality product at a lower price point that was even better for, again, that retrofit customer. I think you'll continue to see us look long term on product roadmap and continue to surprise and delight with new experiences and new capabilities that were not initially contemplated. We feel very excited about continuing to grow our product offering and scaling into this incredibly large and exciting market. I don't know, Garth, do you have anything you want to add to that? Yeah, just to add to that, Luke. Joe, as we've discussed in the past, the customer LTV that we get on a booked home unit is really the lowest it's going to be on day one, because that doesn't account for renewals, it doesn't account for upsells, it doesn't account for a number of different opportunities for us to increase the customer LTV over time. Because of that, the outperformance that you're referring to on the booked home unit growth is really what we're focused on to create the foundation for long-term revenue growth in the business. The outperformance that you just described during the increase in cumulative booked home unit additions really is the best barometer for the health of this business and for market adoption of our product, given that over the long term, we will continue to release incremental LatchOS modules, driving higher LTVs for each individual home unit we bring on the platform. Actually, I missed your first question. I would refer you back to the customer stories to get an understanding of what's actually driving some of the growth in home units. We're starting to see a lot of our customers that may have had a really good experience with a building or two with Latch start to come back to us and think about much larger deals that spread much more broadly across their portfolios. That's what's driving the underlying acceleration in booked home units. We believe that sets the best foundation for us to grow those customer LTVs over time. As a barometer of the business, we actually feel extremely confident about the opportunity ahead of us as presented by the performance year to date. Just one quick follow-up on this. Obviously we're discussing macro disruptions in 2021 that's impacting your customers' ability to complete your deliveries of product ultimately, and then the beginning of software recognition. When we're thinking about booked units, that's more about this cumulative backlog that's in place. The backlog still exists. The question is, at some point, the hope would be all these supply chain disruptions are going to normalize. Do you ultimately have a catch-up period, therefore, as things kind of come back online and you get back to what may have been the original trajectory you hoped for? Absolutely, Joe. 2020 and into 2022, we're going to have a bunch of new sales and marketing investments that we've made over the course of this year. The backlog that you reference of the incremental booked home units that are going to deliver in the periods that we've discussed with our customers give us, again, really high confidence about our ability to deliver sustainable long-term high growth rates and sustained hardware margin, in particular, improvements over time. Okay. Great. Thank you very much. Thanks, Joe. Thank you. As a reminder, to ask a question, you'll need to press star one on your telephone. Our next question comes from Jason Celino with KeyBanc Capital Markets. You may proceed with your question. Hey, Garth. Hey, Luke. Thanks for fitting me in. The supply chain and construction delays, it's been well documented in the media, so not a total surprise here, but how have these trends maybe trended, maybe compare this quarter to last quarter? Any thoughts on maybe when the market kind of corrects itself? Hey, thanks so much, Jason. This was really something we started to see in June. In fact, the industry survey data really suggests that June was the month where this really started to affect a lot of our customers. I think, for us, it's hard for us to predict things that are outside of our control. What we've been most focused on is always delivering for our customers and making sure that our products are not the long pole in the tent of delivering a space. We've been able to continue to deliver for our customers, and I'm really excited and proud of the team for being able to continue to do that. We see that as a continued source of competitive differentiation because we have these deep supply chain relationships and actually manage these things. We have a lot more control and a lot more levers to pull than other folks that are sourcing materials indirectly. Those indirect shortages that are affecting our customers now, that's evidence of just having less control over that of their own supply chain, and we're really proud of, for our products, having control over the supply chain. I think we continue to be optimistic about being able to maintain the supply of our products to meet our customer demand, and that's what we're focused on. We're also working with our direct deployment teams to try to also help our customers deliver more spaces with Latch as well, getting a little bit further into some of the sourcing for the ancillary components around our products as well. Okay, great. No, that makes sense. Sorry if this was already discussed, was this one of the first quarters where you saw the uptick in the software module attach rates? Thank you. Hey, Jason. Yeah, actually in Q4, we reported a 44% attach rate. In Q1, we reported 81% module attach rate, and in Q2, we're now reporting 90% module attach rate of two or more LatchOS modules. It is a continued increase relative to both Q4 and Q1. Excellent. Thank you for the context. Thank you. I'm not showing any further questions at this time. This concludes today's conference call. Thank you for participating. You may now disconnect.