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 March 31, 2022.
“We are pleased to report another strong
quarter, increasing our subscriber count by 70% to 562,000
subscribers for the period. We expanded Spaces Under Management by
49% to 7.3 million spaces — that’s 7.3 million Matterport
digital twins of homes, offices, factories, hotels, and so much
more,” said RJ Pittman, Chairman and Chief Executive Officer of
Matterport. “Real property is the largest asset class in the world,
now valued at an estimated $327 trillion, reflecting a $100
trillion increase in value in recent years as more than 15,000 new
buildings are completed every day. Matterport is leading the
industry with over 7 million digital twins, and we’re creating
thousands more each day, while 99% of the world's buildings have
yet to be digitized. This enormous market opportunity is expanding,
and we remain focused on efficiently scaling Matterport’s business
to meet the rising global demand for software-driven property
management.”
“In addition to strong adoption, we are excited
to report our total revenue for the first quarter of 2022 was $28.5
million, $1 million above the high end of our guidance range. In
addition, Non-GAAP loss per share of 10 cents for the quarter was
three cents better than the top end of our guidance range,” said JD
Fay, Chief Financial Officer of Matterport. “One of our key
strategic levers is subscription revenue, which increased by 24%
year-over-year, comprising over 60% of total revenue for the
quarter, and which continues to provide high and stable gross
margins. Today, we are re-affirming our prior 2022 revenue and
EPS guidance. With $600 million of cash on our balance sheet, we
have the financial strength to navigate the macro environment and
comfortably achieve our long term business plan,” he added.
First Quarter 2022 Financial
Highlights
- Total revenue was
$28.5 million, up 6% compared to first quarter of 2021
- Subscription revenue
was $17.1 million, up 24% compared to first quarter of 2021
- Annualized Recurring
Revenue (ARR) of $68.6 million
- Total subscribers
increased to 562,000, up 70% compared to first quarter of 2021
- Spaces Under
Management (SUM) grew to 7.3 million, up 49% compared to first
quarter of 2021
Recent Business Highlights
- Matterport Axis™,
a motorized mount for smartphones, is now available for purchase.
Matterport Axis, which holds either an iOS or Android device, and
can be used with the Matterport Capture app, creates 3D digital
twins of any physical space with increased speed, precision, and
consistency
- Announced Midland
Holdings, one of the largest residential real estate brokerages in
the Greater China region, will become the first brokerage in the
region to use Matterport digital twins to create virtual 3D
experiences for its entire portfolio of properties
- Expanded its
presence in the Brazilian market via two strategic partners,
Guandalini Posicionamento and PARS, to offer Matterport's spatial
data platform to their enterprise customers in the architecture,
engineering, and construction (AEC) markets.
- Announced and
completed the acquisition of Enview, Inc., a pioneer in the
scalable, artificial intelligence (AI) for 3D spatial data
- Announced the
redemption of public warrants, resulting in approximately $104
million in cash proceeds from the warrants prior to redemption
- Launched social
impact program to support nonprofits and public education
institutions by enabling equitable access to 3D spaces
- Won two Comparably
Awards, including Best Company Outlook among small/mid-sized
companies and Best Places to Work in the San Francisco Bay
Area
- Strengthened Matterport’s executive
team through the addition of the following executives:
- Tom Klein, Chief
Marketing Officer
- Deepti Illa, Vice
President, Global Integrated Marketing
- Ali Jayson, Vice
President, Product Marketing
- Florence Shaffer, Vice
President, Strategy & Operations, Chief of Staff to CEO
- Ben Corser, Managing
Director, Asia Pacific
- Rob Hines, Managing
Director, Americas
Full Year and Second Quarter 2022
Outlook
|
Q2 2022 Guidance |
FY 2022 Guidance |
Revenue (in millions) |
$28.5 — $30.5 |
$125 — $135 |
Subscription Revenue (in millions) |
$18.0 — $18.3 |
$80 — $82 |
Year-over-year Subscription Revenue growth |
18% - 20% |
31% - 34% |
Non-GAAP loss per share |
($0.13) - ($0.15) |
($0.47) - ($0.52) |
Fully diluted shares outstanding (in millions) |
284 |
285 |
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 income (loss), adjusted to exclude stock-based compensation
expense, fair value change of warrants liabilities, fair value
change of earn-out liabilities, payroll tax related to contingent
earn-out share issuance, acquisition transaction costs, and
amortization of acquired intangible assets, in order to provide
investors and management with greater visibility to the underlying
performance of Matterport’s recurring core business operations. In
order to calculate non-GAAP net loss per share, basic and diluted,
Matterport uses a non-GAAP weighted-average share count. Matterport
defines non-GAAP weighted-average shares used to compute non-GAAP
net loss per share, basic and diluted, as GAAP weighted average
shares used to compute net income (loss) per share attributable to
common stockholders, basic, adjusted to reflect the shares of
Matterport’s Class A common stock exchanged for the previously
issued and outstanding shares of redeemable convertible preferred
stock and common stock warrants of Matterport, Inc. (now known as
Matterport Operating, LLC) in connection with the recently
completed merger, that are outstanding as of the end of the period
as if they were outstanding as of the beginning of the period for
comparability, and the potentially dilutive effect of the Company’s
employee equity incentive plan awards.
Conference Call Information
Matterport will host a conference call for
analysts and investors to discuss its financial results for the
first quarter of fiscal 2022 today at 1:30 p.m. Pacific time (4:30
p.m. Eastern time). A recorded webcast of the event will also be
available following the call for one year on the Matterport’s
Investor Relations website at investors.matterport.com.
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.
©2022 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.Forward-Looking
Statements
This press release contains certain
forward-looking statements within the meaning of the federal
securities laws, including statements regarding the services
offered by Matterport, Inc. and the markets in which Matterport
operates, business strategies, debt levels, industry environment
including relating to the global supply chain, potential growth
opportunities, 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 document, including Matterport’s ability to
implement business plans, forecasts, and other expectations in the
industry in which Matterport competes, and identify and realize
additional opportunities. The foregoing list of factors is not
exhaustive. In addition, the financial results set forth in this
press release are preliminary and unaudited, and are based on
information currently available to the Company. While the Company
believes these financial results are meaningful, they could differ
from the audited results that the Company reports in its Annual
Report on Form 10-K for the fiscal year ended December 31, 2021.
The Company assumes no obligation and does not intend to update
these unaudited financial results prior to filing its Form 10-K for
the fiscal year ended December 31, 2021. 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 U.S. Securities and Exchange Commission. 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.
Investor Contact:Soohwan Kim,
CFAVP, Investor Relationsir@matterport.com
Media Contact:Tim McDowdDirector,
Communicationspress@matterport.com +1 (650) 273-6999
MATTERPORT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share
data)(Unaudited)
|
Three Months EndedMarch 31, |
|
|
2022 |
|
|
|
2021 |
|
Revenue: |
|
|
|
Subscription |
$ |
17,141 |
|
|
$ |
13,800 |
|
License |
|
23 |
|
|
|
2,260 |
|
Services |
|
3,973 |
|
|
|
2,689 |
|
Product |
|
7,373 |
|
|
|
8,180 |
|
Total revenue |
|
28,510 |
|
|
|
26,929 |
|
Costs of revenue: |
|
|
|
Subscription |
|
5,262 |
|
|
|
3,251 |
|
License |
|
— |
|
|
|
— |
|
Services |
|
2,983 |
|
|
|
2,035 |
|
Product |
|
8,356 |
|
|
|
4,915 |
|
Total costs of revenue |
|
16,601 |
|
|
|
10,201 |
|
Gross profit |
|
11,909 |
|
|
|
16,728 |
|
Operating expenses: |
|
|
|
Research and development |
|
26,002 |
|
|
|
6,025 |
|
Selling, general, and administrative |
|
70,849 |
|
|
|
13,058 |
|
Total operating expenses |
|
96,851 |
|
|
|
19,083 |
|
Loss from operations |
|
(84,942 |
) |
|
|
(2,355 |
) |
Other income (expense): |
|
|
|
Interest income |
|
1,295 |
|
|
|
8 |
|
Interest expense |
|
— |
|
|
|
(308 |
) |
Change in fair value of warrants liabilities |
|
21,433 |
|
|
|
— |
|
Change in fair value of contingent earn-out liability |
|
136,043 |
|
|
|
— |
|
Other expense, net |
|
(1,321 |
) |
|
|
(198 |
) |
Total other income (expense) |
|
157,450 |
|
|
|
(498 |
) |
Income (loss) before provision for income taxes |
|
72,508 |
|
|
|
(2,853 |
) |
Provision for income taxes |
|
604 |
|
|
|
19 |
|
Net income (loss) |
$ |
71,904 |
|
|
$ |
(2,872 |
) |
Net income (loss) per share attributable to common
stockholders: |
|
|
|
Basic |
$ |
0.26 |
|
|
$ |
(0.07 |
) |
Diluted |
$ |
0.23 |
|
|
$ |
(0.07 |
) |
Weighted-average shares used in computing net income (loss) per
share attributable to common stockholders: |
|
|
|
Basic |
|
275,199 |
|
|
|
39,632 |
|
Diluted |
|
312,432 |
|
|
|
39,632 |
|
MATTERPORT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS(In
thousands) (Unaudited)
|
March 31, |
|
December 31, |
|
|
2022 |
|
|
|
2021 |
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
92,996 |
|
|
$ |
139,519 |
|
Restricted cash |
|
— |
|
|
|
468 |
|
Short-term investments |
|
308,813 |
|
|
|
264,931 |
|
Accounts receivable, net |
|
15,088 |
|
|
|
10,879 |
|
Inventories |
|
5,166 |
|
|
|
5,593 |
|
Prepaid expenses and other current assets |
|
14,213 |
|
|
|
16,313 |
|
Total current assets |
|
436,276 |
|
|
|
437,703 |
|
Property and equipment, net |
|
21,946 |
|
|
|
14,118 |
|
Operating lease right-of-use assets |
|
3,369 |
|
|
|
— |
|
Long-term investments |
|
198,178 |
|
|
|
263,659 |
|
Goodwill |
|
54,080 |
|
|
|
— |
|
Intangible assets, net |
|
5,140 |
|
|
|
— |
|
Other assets |
|
2,912 |
|
|
|
3,696 |
|
Total assets |
$ |
721,901 |
|
|
$ |
719,176 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
13,089 |
|
|
$ |
12,227 |
|
Deferred revenue |
|
14,270 |
|
|
|
11,074 |
|
Accrued expenses and other current liabilities |
|
21,763 |
|
|
|
10,026 |
|
Total current liabilities |
|
49,122 |
|
|
|
33,327 |
|
Warrants liability |
|
6,405 |
|
|
|
38,974 |
|
Contingent earn-out liability |
|
— |
|
|
|
377,576 |
|
Deferred revenue, non-current |
|
288 |
|
|
|
874 |
|
Other long-term liabilities |
|
6,448 |
|
|
|
262 |
|
Total liabilities |
|
62,263 |
|
|
|
451,013 |
|
Commitments and contingencies |
|
|
|
Redeemable convertible preferred stock |
$ |
— |
|
|
$ |
— |
|
Stockholders’ equity: |
|
|
|
Common stock |
|
28 |
|
|
|
25 |
|
Additional paid-in capital |
|
1,061,938 |
|
|
|
737,735 |
|
Accumulated other comprehensive loss |
|
(6,174 |
) |
|
|
(1,539 |
) |
Accumulated deficit |
|
(396,154 |
) |
|
|
(468,058 |
) |
Total stockholders’ equity |
|
659,638 |
|
|
|
268,163 |
|
Total liabilities and stockholders’ equity |
$ |
721,901 |
|
|
$ |
719,176 |
|
MATTERPORT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(In thousands, unaudited)
|
Three Months Ended March 31, |
|
|
2022 |
|
|
|
2021 |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
Net income (loss) |
$ |
71,904 |
|
|
$ |
(2,872 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|
|
|
Depreciation and amortization |
|
2,463 |
|
|
|
1,285 |
|
Amortization of debt discount |
|
— |
|
|
|
67 |
|
Amortization of investment premiums, net of accretion of
discounts |
|
954 |
|
|
|
— |
|
Stock-based compensation, net of amounts capitalized |
|
55,277 |
|
|
|
658 |
|
Change in fair value of warrants liabilities |
|
(21,433 |
) |
|
|
— |
|
Change in fair value of contingent earn-out liability |
|
(136,043 |
) |
|
|
— |
|
Deferred income taxes |
|
(227 |
) |
|
|
— |
|
Allowance for doubtful accounts |
|
191 |
|
|
|
16 |
|
Other |
|
45 |
|
|
|
(53 |
) |
Changes in operating assets and liabilities, net of effects of
businesses acquired: |
|
|
|
Accounts receivable |
|
(3,988 |
) |
|
|
(722 |
) |
Inventories |
|
427 |
|
|
|
185 |
|
Prepaid expenses and other assets |
|
(1,571 |
) |
|
|
(144 |
) |
Accounts payable |
|
659 |
|
|
|
1,869 |
|
Deferred revenue |
|
2,610 |
|
|
|
1,787 |
|
Accrued expenses and other liabilities |
|
3,254 |
|
|
|
(1,020 |
) |
Net cash provided by (used in) operating
activities |
|
(25,478 |
) |
|
|
1,056 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
Purchases of property and equipment |
|
(448 |
) |
|
|
(162 |
) |
Capitalized software and development costs |
|
(3,596 |
) |
|
|
(1,344 |
) |
Purchase of investments |
|
(30,378 |
) |
|
|
— |
|
Maturities of investments |
|
46,200 |
|
|
|
— |
|
Investment in convertible notes |
|
— |
|
|
|
(1,000 |
) |
Business acquisitions, net of cash acquired |
|
(30,020 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(18,242 |
) |
|
|
(2,506 |
) |
CASH FLOW FROM FINANCING ACTIVITIES: |
|
|
|
Payment of transaction costs related to reverse
recapitalization |
|
— |
|
|
|
(593 |
) |
Proceeds from exercise of stock options |
|
2,191 |
|
|
|
789 |
|
Payments for taxes related to net settlement of equity awards |
|
(33,337 |
) |
|
|
— |
|
Proceeds from exercise of warrants |
|
27,844 |
|
|
|
— |
|
Repayment of debt |
|
— |
|
|
|
(1,099 |
) |
Other |
|
76 |
|
|
|
— |
|
Net cash used in financing activities |
|
(3,226 |
) |
|
|
(903 |
) |
Net change in cash, cash equivalents, and restricted cash |
|
(46,946 |
) |
|
|
(2,353 |
) |
Effect of exchange rate changes on cash |
|
(45 |
) |
|
|
(12 |
) |
Cash, cash equivalents, and restricted cash at beginning of
year |
|
139,987 |
|
|
|
52,250 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
92,996 |
|
|
$ |
49,885 |
|
MATTERPORT, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES(In thousands, except per share
amounts)(unaudited)
|
|
Three Months Ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
GAAP net income/(loss) |
|
$ |
71,904 |
|
|
$ |
(2,872 |
) |
Stock-based compensation expense (1) |
|
|
56,088 |
|
|
|
658 |
|
Acquisition-related costs (2) |
|
|
172 |
|
|
|
— |
|
Amortization expense of acquired intangible assets |
|
|
260 |
|
|
|
— |
|
Change in fair value of warrants liabilities (3) |
|
|
(21,433 |
) |
|
|
— |
|
Change in fair value of contingent earn-out liability (4) |
|
|
(136,043 |
) |
|
|
— |
|
Payroll tax related to contingent earn-out share issuance (5) |
|
|
1,164 |
|
|
|
— |
|
Non-GAAP net loss |
|
$ |
(27,888 |
) |
|
$ |
(2,214 |
) |
|
|
|
|
|
GAAP net income (loss) per share attributable to common
stockholders: |
|
|
|
|
Basic |
|
$ |
0.26 |
|
|
$ |
(0.07 |
) |
Diluted |
|
$ |
0.23 |
|
|
$ |
(0.07 |
) |
Non-GAAP net loss per share attributable to common stockholders,
basic and diluted |
|
$ |
(0.10 |
) |
|
$ |
(0.01 |
) |
|
|
|
|
|
GAAP weighted-average shares used to compute net income (loss) per
share, basic |
|
|
275,199 |
|
|
|
39,632 |
|
Weighted-average effect of potentially dilutive securities (6) |
|
|
37,233 |
|
|
|
— |
|
GAAP weighted-average shares used to compute net income (loss) per
share, diluted |
|
|
312,432 |
|
|
|
39,632 |
|
Excluded anti-dilutive weighted-average potential shares of common
stock in calculating non-GAAP loss per share |
|
|
(37,233 |
) |
|
|
— |
|
Adjustment for common stock issued in connection with the merger
(7) |
|
|
— |
|
|
|
127,499 |
|
Non-GAAP weighted-average shares used to compute net loss per
share, basic and diluted |
|
|
275,199 |
|
|
|
167,131 |
|
(1) Consists primarily of non-cash share-based
compensation related to the Company's stock incentive plans and
earn-out arrangement.
(2) Consists of acquisition transaction costs.
(3) Consists of the non-cash fair value measurement
change for public and private warrants.
(4) Represents the non-cash fair-value measurement
change related to our earn-out liability.
(5) Represents the payroll tax related to Earn-out
shares issuance and release.
(6) Consists of the potentially dilutive effect of
employee equity incentive plan awards.
(7) Consists of non-GAAP adjustment of unweighted
average common stock issued and converted from Matterport, Inc.’s
(now known as Matterport Operating, LLC) previously issued and
outstanding shares of convertible preferred stock and common stock
warrants prior to the completion of the merger.
A photo accompanying this announcement is available at
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/4034e15b-6368-40be-95e9-26432d54e28c
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