Matterport, Inc. (Nasdaq: MTTR) (“Matterport” or the “Company”),
the leading spatial data company driving the digital transformation
of the built world, today announced financial results for the
quarter ended June 30, 2024.
"I’m pleased to announce our second-quarter 2024
results, which underscore our ongoing success in driving efficient
growth," said RJ Pittman, Chairman and CEO of Matterport.
"Subscription revenue increased by 16% year-over-year, reaching a
record $24.2 million, and now accounts for over 57% of our total
revenue. This growth highlights our strategic focus on expanding
the recurring subscription revenue within our business," Pittman
added. “Q2 was marked by bold product innovation as we continue to
develop new products and deliver exceptional value to our
customers. Our latest AI initiative, Project Genesis, along with
our spatial data-driven efforts like Property Intelligence from our
Q1 Winter Release, have been well received by customers and
partners. We are actively developing the future of the digital twin
and look forward to unveiling more breakthroughs in our Fall
Release later this year.”
“Our second quarter results represent continued
revenue growth and improvements in Non-GAAP net loss per share
year-over-year. Steady subscription revenue growth, gross margin
expansion, and continued operating expense discipline drove our
non-GAAP loss per share to $0.02, which is a 71% year-on-year
improvement. These results underscore our steadfast commitment to
profitability and highlight the significant progress we are making
in transforming the industry. As we continue to drive the adoption
of Matterport digital twins, we are not just experiencing growth;
we are shaping a future where digital transformation empowers our
customers and redefines the built world,” said JD Fay, Chief
Financial Officer of Matterport.
Also today, Matterport released the company’s third
Environmental, Social, and Governance report assessing the impact
of Matterport’s products and programs toward driving sustainable
and equitable outcomes. More information can be found on the
company’s website at https://matterport.com/esg.
Second Quarter 2024 Financial
Highlights
- Square feet under management hit 44.0 billion, up 33%
year-over-year
- Spaces under management reached 13.0 million, up 24%
year-over-year
- Total subscribers reached 1.06 million, up 28%
year-over-year
- Subscription revenue of $24.2 million, up 16%
year-over-year
- Annualized Recurring Revenue (ARR) was $96.6 million
- Total revenue was $42.2 million
- Net loss of $0.45 per share, and Non-GAAP net loss of $0.02 per
share, which is a 71% improvement year-over-year
- Cash used in operating activities was $11.8 million for the
first half of 2024, a 64% improvement year-over-year
Recent Business Highlights
- Announced the acquisition of Matterport by CoStar Group. CoStar
Group will acquire all outstanding shares of Matterport in a cash
and stock transaction valued at $5.50 per share, representing an
equity value of approximately $2.1 billion and an enterprise value
of approximately $1.6 billion based on the closing price for CoStar
Group common stock on April 19, 2024. Under the terms and subject
to the conditions of the agreement, Matterport stockholders will
receive $2.75 in cash and $2.75 in shares of CoStar Group common
stock for each share of Matterport common stock.
- Announced the launch of avoided emissions reporting for select
enterprise customers, measuring the emissions savings associated
with the use of Matterport’s digital twin platform. Developed with
independent carbon accounting experts, the reports enable
enterprise customers to understand the impact of emissions avoided
by collaborating remotely instead of traveling to inspect
facilities onsite.
- Announced that Crunch Fitness, one of the largest fitness
companies in North America with more than 450 gym locations
globally, will use Matterport’s digital twin and photography
services to ensure brand consistency across marketing materials for
its U.S. franchise locations.
- Announced that BMO, the eighth largest bank in North America by
assets, has leveraged Matterport’s digital twin platform to
streamline site visits across its physical footprint for multiple
areas of the bank. BMO utilized Matterport’s Capture Services, a
global network of expert capture technicians, to swiftly generate
3D digital twins of each acquired Bank of the West location,
including floor plans. In three months, BMO digitally captured all
503 branches, saving costs for travel and site visits, and
approximately 6,000 hours of equivalent survey work.
- Announced a partnership with FBS, the leading innovator of
Multiple Listing Service (MLS) technology and owner of the Flexmls
platform. FBS represents up to 150 MLSs across the US and offers a
comprehensive real estate technology platform that includes the
Flexmls® system. The relationship enables Flexmls users to
easily upload their Matterport digital twins, and autofill
dimensional data from those twins directly into the Flexmls
platform with just one click. Flexmls users will also gain
efficiency through the seamless upload of Matterport media,
including photos, floor plans, and videos.
- Announced the achievement of Amazon WebServices (AWS) IoT
Competency status. This designation underscores Matterport's
pivotal role and expertise in innovative Internet of Things (IoT)
technologies, empowering customers to leverage AWS for IoT and
achieve their cloud transformation goals. Achieving this milestone
differentiates Matterport as an AWS Partner Network member,
providing software designed to help enterprises adopt, develop, and
deploy complex IoT-enabled digital twin projects on AWS.
- Announced that Miho Technos Co., Ltd., a leading general
contractor in Tottori Prefecture in Japan, has introduced
Matterport's digital twin and BIM solutions, and uses status
surveys, recordkeeping, surveying and dimensional measurements.
Since the introduction, Matterport is used in nearly all of the
company's renovation projects.
Transaction with CoStar Group,
Inc.
Given the pending acquisition of Matterport by
CoStar Group, Inc. that was announced on April 22, 2024, Matterport
will not be holding a conference call or live webcast to discuss
Matterport’s quarterly financial results. Also, in light of the
pending transaction, the Company had previously suspended its
financial guidance for the full fiscal year 2024 and will not be
providing financial guidance for the upcoming fiscal quarter. At a
special meeting of stockholders held on July 26, 2024, Matterport
stockholders approved the transaction with CoStar Group, Inc. The
completion of the transaction remains subject to the expiration or
termination of the waiting period imposed by the Hart-Scott Rodino
Antitrust Improvements Act of 1976, as amended, and the
satisfaction or waiver of the other closing conditions specified in
Matterport’s agreement with CoStar Group, Inc.
Non-GAAP Financial Information
Matterport has provided in this press release
financial information that has not been prepared in accordance with
generally accepted accounting principles in the United States
(GAAP). We believe that the presentation of non-GAAP financial
information provides important supplemental information to
management and investors regarding financial and business trends
relating to Matterport’s financial condition and results of
operations.
The presentation of these non-GAAP financial
measures are not meant to be considered in isolation or as a
substitute for comparable GAAP financial measures and should be
read only in conjunction with the Company’s consolidated financial
statements prepared in accordance with GAAP. For further
information regarding these non-GAAP measures, including the
reconciliation of these non-GAAP financial measures to their most
directly comparable GAAP financial measures, please refer to the
financial tables below.
Non-GAAP Net Loss and Non-GAAP Net Loss Per Share,
Basic and Diluted. Matterport defines non-GAAP net loss as net
loss, adjusted to exclude stock-based compensation-related charges
(including share-based payroll tax expense), fair value change of
warrants liability, amortization of acquired intangible assets,
litigation expense, and acquisition-related transaction costs, in
order to provide investors and management with greater visibility
to the underlying performance of Matterport’s recurring core
business operations. We define non-GAAP net loss per share, as
non-GAAP net loss divided by the weighted-average shares
outstanding, which includes the dilutive effect of potentially
diluted common stock equivalents outstanding during the period if
any.
About Matterport
Matterport, Inc. (Nasdaq: MTTR) is leading the
digital transformation of the built world. Our groundbreaking
spatial data platform turns buildings into data to make nearly
every space more valuable and accessible. Millions of buildings in
more than 177 countries have been transformed into immersive
Matterport digital twins to improve every part of the building
lifecycle from planning, construction, and operations to
documentation, appraisal and marketing. Learn more at
matterport.com and browse a gallery of digital twins.
©2024 Matterport, Inc. All rights reserved.
Matterport is a registered trademark and the Matterport logo is a
trademark of Matterport, Inc. All other marks are the property of
their respective owners.
Investor
Contact:ir@matterport.com
Media
Contact:press@matterport.com
Forward-Looking Statements
This communication contains certain forward-looking
statements within the meaning of the federal securities laws,
including statements regarding the proposed transaction, the
products and services offered by Matterport and the markets in
which Matterport operates, business strategies, debt levels,
industry environment including the global supply chain, potential
growth opportunities, and the effects of regulations and
Matterport’s projected future results. These forward-looking
statements generally are identified by the words “believe,”
“project,” “expect,” “anticipate,” “estimate,” “intend,”
“strategy,” “future,” “forecast,” “opportunity,” “plan,” “may,”
“should,” “will,” “would,” “will be,” “will continue,” “will likely
result,” and similar expressions (including the negative versions
of such words or expressions).
Forward-looking statements are predictions,
projections and other statements about future events that are based
on current expectations and assumptions and, as a result, are
subject to risks and uncertainties. Many factors could cause actual
future events to differ materially from the forward-looking
statements in this communication, including the inability to
consummate the proposed transaction with CoStar Group, Inc. (the
“proposed transaction”) within the anticipated time period, or at
all, due to any reason, including the failure to obtain required
regulatory approvals, or to satisfy the other conditions to the
consummation of the proposed transaction; the risk that the
proposed transaction disrupts Matterport’s current plans and
operations or diverts management’s attention from its ongoing
business; the effects of the proposed transaction on Matterport’s
business, operating results, and ability to retain and hire key
personnel and maintain relationships with customers, suppliers and
others with whom Matterport does business; the risk that
Matterport’s stock price may decline significantly if the proposed
transaction is not consummated; the nature, cost and outcome of any
legal proceedings related to the proposed transaction; Matterport’s
ability to grow market share in existing markets or any new markets
Matterport may enter; Matterport’s ability to respond to general
economic conditions; supply chain disruptions; Matterport’s ability
to manage growth effectively; Matterport’s success in retaining or
recruiting officers, key employees or directors, or changes
required in the retention or recruitment of officers, key employees
or directors; the impact of restructuring plans; the impact of the
regulatory environment and complexities with compliance related to
such environment; factors relating to Matterport’s business,
operations and financial performance, including the impact of
infectious diseases, health epidemics and pandemics; Matterport’s
ability to maintain an effective system of internal controls over
financial reporting; Matterport’s ability to achieve and maintain
profitability in the future; Matterport’s ability to access sources
of capital; Matterport’s ability to maintain and enhance
Matterport’s products and brand, and to attract customers;
Matterport’s ability to manage, develop and refine Matterport’s
technology platform; the success of Matterport’s strategic
relationships with third parties; Matterport’s history of losses
and whether Matterport will continue to incur continuing losses for
the foreseeable future; Matterport’s ability to protect and enforce
Matterport’s intellectual property rights; Matterport’s success in
defending or appealing any pending or future litigation, claims or
demands; Matterport’s ability to implement business plans,
forecasts, and other expectations and identify and realize
additional opportunities; Matterport’s ability to attract and
retain new subscribers; the size of the total addressable market
for Matterport’s products and services; the continued adoption of
spatial data; any inability to complete acquisitions and integrate
acquired businesses; general economic uncertainty and the effect of
general economic conditions in Matterport’s industry; environmental
uncertainties and risks related to adverse weather conditions and
natural disasters; the volatility of the market price and liquidity
of Matterport’s Class A common stock and other securities; the
increasingly competitive environment in which Matterport operates;
and other factors detailed under the section entitled “Risk
Factors” in Matterport’s Annual Report on Form 10-K and
subsequently filed Quarterly Reports on Form 10-Q. The foregoing
list of factors is not exhaustive. You should carefully consider
the foregoing factors and the other risks and uncertainties
described in documents filed by Matterport from time to time 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 put undue reliance on
forward-looking statements, and Matterport assumes no obligation
and, except as required by law, does not intend to update or revise
these forward-looking statements, whether as a result of new
information, future events, or otherwise. Matterport does not give
any assurance that it will achieve its expectations.
|
|
|
|
|
|
|
|
MATTERPORT, INC. CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands, except per
share data)(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
Subscription |
$ |
24,155 |
|
|
$ |
20,895 |
|
|
$ |
48,170 |
|
|
$ |
40,769 |
|
Services |
10,881 |
|
|
10,684 |
|
|
19,984 |
|
|
19,388 |
|
Product |
7,180 |
|
|
7,988 |
|
|
13,934 |
|
|
17,404 |
|
Total revenue |
42,216 |
|
|
39,567 |
|
|
82,088 |
|
|
77,561 |
|
Costs of revenue: |
|
|
|
|
|
|
|
|
|
|
|
Subscription |
8,245 |
|
|
7,235 |
|
|
15,888 |
|
|
14,197 |
|
Services |
7,928 |
|
|
8,009 |
|
|
14,303 |
|
|
14,253 |
|
Product |
6,663 |
|
|
8,360 |
|
|
12,925 |
|
|
16,736 |
|
Total costs of revenue |
22,836 |
|
|
23,604 |
|
|
43,116 |
|
|
45,186 |
|
Gross profit |
19,380 |
|
|
15,963 |
|
|
38,972 |
|
|
32,375 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research and development |
15,360 |
|
|
18,861 |
|
|
30,260 |
|
|
37,134 |
|
Selling, general, and administrative |
54,129 |
|
|
56,008 |
|
|
99,605 |
|
|
110,941 |
|
Litigation expense |
95,000 |
|
|
— |
|
|
95,000 |
|
|
— |
|
Total operating expenses |
164,489 |
|
|
74,869 |
|
|
224,865 |
|
|
148,075 |
|
Loss from operations |
|
(145,109 |
) |
|
|
(58,906 |
) |
|
|
(185,893 |
) |
|
|
(115,700 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
2,623 |
|
|
1,481 |
|
|
4,887 |
|
|
2,952 |
|
Change in fair value of warrants liability |
|
(944 |
) |
|
|
(171 |
) |
|
|
(1,064 |
) |
|
51 |
|
Other income |
1,898 |
|
|
1,223 |
|
|
4,451 |
|
|
2,406 |
|
Total other income |
3,577 |
|
|
2,533 |
|
|
8,274 |
|
|
5,409 |
|
Loss before provision for
income taxes |
|
(141,532 |
) |
|
|
(56,373 |
) |
|
|
(177,619 |
) |
|
|
(110,291 |
) |
Provision for income
taxes |
54 |
|
|
163 |
|
|
95 |
|
|
87 |
|
Net loss |
$ |
(141,586 |
) |
|
$ |
(56,536 |
) |
|
$ |
(177,714 |
) |
|
$ |
(110,378 |
) |
Net loss per share, basic and
diluted |
$ |
(0.45 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.56 |
) |
|
$ |
(0.37 |
) |
Weighted-average shares used
in per share calculation, basic and diluted |
316,801 |
|
|
298,096 |
|
|
314,905 |
|
|
295,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MATTERPORT INC. CONDENSED CONSOLIDATED
BALANCE SHEETS(In thousands)
(Unaudited) |
|
|
|
|
|
|
|
|
|
June 30, |
|
|
December 31, |
|
|
2024 |
|
|
2023 |
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
126,284 |
|
|
$ |
82,902 |
|
Short-term investments |
237,852 |
|
|
305,264 |
|
Accounts receivable, net |
17,261 |
|
|
16,925 |
|
Inventories |
8,765 |
|
|
9,115 |
|
Prepaid expenses and other current assets |
8,135 |
|
|
8,635 |
|
Total current assets |
398,297 |
|
|
422,841 |
|
Property and equipment,
net |
31,060 |
|
|
32,471 |
|
Operating lease right-of-use
assets |
360 |
|
|
625 |
|
Long-term investments |
47,191 |
|
|
34,834 |
|
Goodwill |
69,593 |
|
|
69,593 |
|
Intangible assets, net |
8,235 |
|
|
9,120 |
|
Other assets |
7,655 |
|
|
7,671 |
|
Total assets |
$ |
562,391 |
|
|
$ |
577,155 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
$ |
9,672 |
|
|
$ |
7,586 |
|
Deferred revenue |
27,328 |
|
|
23,294 |
|
Accrued expenses and other current liabilities |
108,673 |
|
|
13,354 |
|
Total current liabilities |
145,673 |
|
|
44,234 |
|
Warrants liability |
1,354 |
|
|
290 |
|
Deferred
revenue, non-current |
2,405 |
|
|
3,141 |
|
Other long-term
liabilities |
— |
|
|
206 |
|
Total liabilities |
149,432 |
|
|
47,871 |
|
Commitments and
contingencies |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
Common stock |
32 |
|
|
31 |
|
Additional paid-in capital |
1,369,619 |
|
|
1,307,324 |
|
Accumulated other comprehensive income (loss) |
(504 |
) |
|
403 |
|
Accumulated deficit |
(956,188 |
) |
|
(778,474 |
) |
Total stockholders’ equity |
412,959 |
|
|
529,284 |
|
Total liabilities and
stockholders’ equity |
$ |
562,391 |
|
|
$ |
577,155 |
|
|
|
|
|
|
|
|
|
|
|
MATTERPORT, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS(In thousands,
unaudited) |
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
2024 |
|
|
2023 |
|
CASH FLOWS FROM
OPERATING ACTIVITIES |
|
|
|
|
|
Net loss |
$ |
(177,714 |
) |
|
$ |
(110,378 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|
|
|
|
|
Depreciation and amortization |
11,393 |
|
|
9,102 |
|
Accretion of discounts, net of amortization of investment
premiums |
(5,412 |
) |
|
(2,319 |
) |
Stock-based compensation, net of amounts capitalized |
56,429 |
|
|
63,253 |
|
Change in fair value of warrants liability |
1,064 |
|
|
(51 |
) |
Deferred income taxes |
— |
|
|
(185 |
) |
Allowance for doubtful accounts |
265 |
|
|
49 |
|
Loss from excess inventory and purchase obligation |
— |
|
|
1,592 |
|
Other |
276 |
|
|
(225 |
) |
Changes in operating assets and liabilities, net of effects of
businesses acquired: |
|
|
|
|
|
Accounts receivable |
(602 |
) |
|
2,146 |
|
Inventories |
350 |
|
|
(5,787 |
) |
Prepaid expenses and other assets |
1,684 |
|
|
4,252 |
|
Accounts payable |
2,086 |
|
|
(169 |
) |
Deferred revenue |
3,298 |
|
|
4,925 |
|
Accrued expenses and other liabilities |
95,113 |
|
|
956 |
|
Net cash used in operating activities |
(11,770 |
) |
|
(32,839 |
) |
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
Purchases of property and equipment |
(72 |
) |
|
(101 |
) |
Capitalized software and development costs |
(4,490 |
) |
|
(5,248 |
) |
Purchase of investments |
(127,448 |
) |
|
(251,603 |
) |
Maturities of investments |
186,106 |
|
|
254,601 |
|
Business acquisitions, net of cash acquired |
— |
|
|
(1,676 |
) |
Net cash provided by (used in) investing activities |
54,096 |
|
|
(4,027 |
) |
CASH FLOW FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
Proceeds from the sales of shares through employee equity incentive
plans |
1,332 |
|
|
2,195 |
|
Payments for taxes related to net settlement of equity awards |
— |
|
|
(329 |
) |
Net cash provided by financing activities |
1,332 |
|
|
1,866 |
|
Net change in cash and cash
equivalents |
43,658 |
|
|
(35,000 |
) |
Effect of exchange rate
changes on cash |
(276 |
) |
|
188 |
|
Cash and cash equivalents, at
beginning of year |
82,902 |
|
|
117,128 |
|
Cash and cash equivalents, at
end of period |
$ |
126,284 |
|
|
$ |
82,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MATTERPORT, INC. RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES(In thousands, except
per share amounts)(unaudited) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
GAAP net loss |
$ |
(141,586 |
) |
|
$ |
(56,536 |
) |
|
$ |
(177,714 |
) |
|
$ |
(110,378 |
) |
Stock-based
compensation-related charges (1) |
31,621 |
|
|
34,449 |
|
|
62,348 |
|
|
67,560 |
|
Acquisition-related costs
(2) |
6,916 |
|
|
— |
|
|
7,923 |
|
|
— |
|
Amortization expense of
acquired intangible assets |
443 |
|
|
443 |
|
|
886 |
|
|
886 |
|
Change in fair value of
warrants liability (3) |
1,184 |
|
|
171 |
|
|
1,064 |
|
|
(51 |
) |
Litigation expense |
95,000 |
|
|
— |
|
|
95,000 |
|
|
— |
|
Non-GAAP net loss |
$ |
(6,422 |
) |
|
$ |
(21,473 |
) |
|
$ |
(10,493 |
) |
|
$ |
(41,983 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per share
attributable to common stockholders, basic and diluted |
$ |
(0.45 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.56 |
) |
|
$ |
(0.37 |
) |
Non-GAAP net loss per share
attributable to common stockholders, basic and diluted |
$ |
(0.02 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used
to compute net loss per share, basic and diluted |
316,801 |
|
|
298,096 |
|
|
314,905 |
|
|
295,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Consists primarily of non-cash share-based
compensation expense related to our stock incentive plans, and the
employer payroll taxes related to our stock options and restricted
stock units.(2) Consists of acquisition transaction costs incurred
for the proposed transaction.(3) Consists of the non-cash fair
value measurement change for private warrants.
Matterport (NASDAQ:MTTR)
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