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, 2022.
“We delivered another strong quarter, increasing our subscriber
count by 52% to 616,000 subscribers. We expanded Spaces Under
Management by 44% to over 8 million spaces,” said RJ Pittman,
Chairman and Chief Executive Officer of Matterport. “We continue to
see strength in our enterprise subscriber base, and believe that
customers who adopt digital twins will realize increased revenues
and lower their operating costs, gaining a powerful advantage in
any economic environment. Our laser focus on delivering measurable
customer value for large enterprises and small businesses alike is
fueling our growth and scaling our platform. Our recent acquisition
of VHT Studios extends our offering to satisfy the growing demand
for digital twins and integrated marketing solutions for the
residential, commercial and hospitality real estate industries,”
Pittman added.
“We are pleased to report subscription revenue of $18.4 million
for the quarter, above the high end of our guidance range. We
continued to improve operating efficiencies and reported non-GAAP
loss per share of $0.12 for the quarter, also better than our
guidance range,” said JD Fay, Chief Financial Officer of
Matterport. “Quarterly subscription revenue increased by 20%
year-over-year and continues to grow as a proportion of total
revenue, comprising 65% of total revenue, up from 60% in the first
quarter of 2022. These are strong results that demonstrate our
ability to drive the business forward and lead through the macro
environment effectively. With $562 million of cash and short- and
long-term investments, we believe we have the financial strength to
comfortably achieve our long term business plan.”
Second Quarter 2022 Financial Highlights
- Spaces Under Management (SUM) grew to 8.0 million, up 10%
compared to the first quarter of 2022
- Total subscribers increased to 616,000, up 10%
sequentially
- Subscription revenue was $18.4 million, up 7% sequentially
- Total revenue was $28.5 million, flat sequentially
- Annualized Recurring Revenue (ARR) exiting the second quarter
was $73.6 million
- Exited Q2 with record product backlog
Recent Business Highlights
- Acquired VHT Studios to accelerate adoption of digital twins
for real estate. The combination of VHT Studios’ visual media
technology and services with the immersive Matterport 3D Digital
Twin platform is expected to elevate the buying and leasing
experience while simplifying the process of creating comprehensive
marketing packages for enterprise brokerages and agents
- Partnered with CGS, a global provider of applications,
enterprise learning, and outsourcing services, to deliver virtual
training solutions for front-line workers across the Fortune
500
- Completed SOC 2 Type II standards for confidentiality, a key
requirement for many Fortune 500 customers and other enterprise
organizations evaluating the deployment of digital twins
- Donated digital twin technology to SBP, formerly known as the
St. Bernard Project, to help disaster-affected communities
accelerate the FEMA appeals process
- Appointed Susan Repo to the board of directors and to serve as
chair of the audit committee. Ms. Repo is the Chief Financial
Officer of ICEYE and also serves on the board of directors of Mitek
Systems, Inc. (Nasdaq: MITK) and GM Financial Bank
Full Year and Third Quarter 2022 Outlook
|
Q3 2022Guidance |
FY 2022Guidance |
Revenue (in millions) |
$35 — $37 |
$132 — $138 |
Subscription Revenue (in millions) |
$18.5 — $18.8 |
$73 — $74 |
Non-GAAP loss per share |
($0.13) - ($0.15) |
($0.46) - ($0.50) |
Weighted average fully diluted shares outstanding (in
millions) |
288 |
286 |
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 second 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. 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:
Toru Levinsonpress@matterport.com
MATTERPORT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share
data)(Unaudited)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue: |
|
|
|
|
|
|
|
Subscription |
$ |
18,386 |
|
|
$ |
15,281 |
|
|
$ |
35,527 |
|
|
$ |
29,081 |
|
License |
|
26 |
|
|
|
2,099 |
|
|
|
49 |
|
|
|
4,359 |
|
Services |
|
5,013 |
|
|
|
2,879 |
|
|
|
8,986 |
|
|
|
5,568 |
|
Product |
|
5,056 |
|
|
|
9,244 |
|
|
|
12,429 |
|
|
|
17,424 |
|
Total revenue |
|
28,481 |
|
|
|
29,503 |
|
|
|
56,991 |
|
|
|
56,432 |
|
Costs of revenue: |
|
|
|
|
|
|
|
Subscription |
|
6,109 |
|
|
|
3,384 |
|
|
|
11,371 |
|
|
|
6,635 |
|
License |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Services |
|
3,169 |
|
|
|
2,290 |
|
|
|
6,152 |
|
|
|
4,325 |
|
Product |
|
7,490 |
|
|
|
6,015 |
|
|
|
15,846 |
|
|
|
10,930 |
|
Total costs of revenue |
|
16,768 |
|
|
|
11,689 |
|
|
|
33,369 |
|
|
|
21,890 |
|
Gross profit |
|
11,713 |
|
|
|
17,814 |
|
|
|
23,622 |
|
|
|
34,542 |
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
|
21,518 |
|
|
|
7,090 |
|
|
|
47,520 |
|
|
|
13,115 |
|
Selling, general, and administrative |
|
59,385 |
|
|
|
16,501 |
|
|
|
130,234 |
|
|
|
29,559 |
|
Total operating expenses |
|
80,903 |
|
|
|
23,591 |
|
|
|
177,754 |
|
|
|
42,674 |
|
Loss from operations |
|
(69,190 |
) |
|
|
(5,777 |
) |
|
|
(154,132 |
) |
|
|
(8,132 |
) |
Other income (expense): |
|
|
|
|
|
|
|
Interest income |
|
1,484 |
|
|
|
14 |
|
|
|
2,779 |
|
|
|
22 |
|
Interest expense |
|
— |
|
|
|
(277 |
) |
|
|
— |
|
|
|
(585 |
) |
Change in fair value of warrants liabilities |
|
4,714 |
|
|
|
— |
|
|
|
26,147 |
|
|
|
— |
|
Change in fair value of contingent earn-out liability |
|
— |
|
|
|
— |
|
|
|
136,043 |
|
|
|
— |
|
Other expense, net |
|
(1,353 |
) |
|
|
(149 |
) |
|
|
(2,674 |
) |
|
|
(347 |
) |
Total other income
(expense) |
|
4,845 |
|
|
|
(412 |
) |
|
|
162,295 |
|
|
|
(910 |
) |
Income (loss) before provision
for income taxes |
|
(64,345 |
) |
|
|
(6,189 |
) |
|
|
8,163 |
|
|
|
(9,042 |
) |
Provision for income
taxes |
|
289 |
|
|
|
20 |
|
|
|
893 |
|
|
|
39 |
|
Net income (loss) |
$ |
(64,634 |
) |
|
$ |
(6,209 |
) |
|
$ |
7,270 |
|
|
$ |
(9,081 |
) |
Net income (loss) per share
attributable to common stockholders: |
|
|
|
|
|
|
|
Basic |
$ |
(0.23 |
) |
|
$ |
(0.15 |
) |
|
$ |
0.03 |
|
|
$ |
(0.22 |
) |
Diluted |
$ |
(0.23 |
) |
|
$ |
(0.15 |
) |
|
$ |
0.02 |
|
|
$ |
(0.22 |
) |
Weighted-average shares used in computing net income (loss) per
share attributable to common stockholders: |
|
|
|
|
|
|
|
Basic |
|
283,405 |
|
|
|
41,348 |
|
|
|
279,289 |
|
|
|
40,490 |
|
Diluted |
|
283,405 |
|
|
|
41,348 |
|
|
|
313,834 |
|
|
|
40,490 |
|
MATTERPORT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS(In
thousands) (Unaudited)
|
June 30, |
|
December 31, |
|
|
2022 |
|
|
|
2021 |
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
113,923 |
|
|
$ |
139,519 |
|
Restricted cash |
|
— |
|
|
|
468 |
|
Short-term investments |
|
362,300 |
|
|
|
264,931 |
|
Accounts receivable, net |
|
14,521 |
|
|
|
10,879 |
|
Inventories |
|
6,475 |
|
|
|
5,593 |
|
Prepaid expenses and other current assets |
|
15,377 |
|
|
|
16,313 |
|
Total current assets |
|
512,596 |
|
|
|
437,703 |
|
Property and equipment,
net |
|
25,750 |
|
|
|
14,118 |
|
Operating lease right-of-use
assets |
|
3,087 |
|
|
|
— |
|
Long-term investments |
|
85,842 |
|
|
|
263,659 |
|
Goodwill |
|
54,080 |
|
|
|
— |
|
Intangible assets, net |
|
4,875 |
|
|
|
— |
|
Other assets |
|
3,302 |
|
|
|
3,696 |
|
Total assets |
$ |
689,532 |
|
|
$ |
719,176 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
14,685 |
|
|
$ |
12,227 |
|
Deferred revenue |
|
14,302 |
|
|
|
11,074 |
|
Accrued expenses and other current liabilities |
|
21,228 |
|
|
|
10,026 |
|
Total current liabilities |
|
50,215 |
|
|
|
33,327 |
|
Warrants liability |
|
1,691 |
|
|
|
38,974 |
|
Contingent earn-out
liability |
|
— |
|
|
|
377,576 |
|
Deferred
revenue, non-current |
|
288 |
|
|
|
874 |
|
Other long-term
liabilities |
|
6,131 |
|
|
|
262 |
|
Total liabilities |
|
58,325 |
|
|
|
451,013 |
|
Stockholders’ equity: |
|
|
|
Common stock |
$ |
28 |
|
|
$ |
25 |
|
Additional paid-in capital |
|
1,099,617 |
|
|
|
737,735 |
|
Accumulated other comprehensive loss |
|
(7,650 |
) |
|
|
(1,539 |
) |
Accumulated deficit |
|
(460,788 |
) |
|
|
(468,058 |
) |
Total stockholders’ equity |
|
631,207 |
|
|
|
268,163 |
|
Total liabilities and
stockholders’ equity |
$ |
689,532 |
|
|
$ |
719,176 |
|
MATTERPORT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(In thousands, unaudited)
|
Six Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
CASH FLOWS FROM
OPERATING ACTIVITIES |
|
|
|
Net income (loss) |
$ |
7,270 |
|
|
$ |
(9,081 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|
|
|
Depreciation and amortization |
|
5,563 |
|
|
|
2,608 |
|
Amortization of debt discount |
|
— |
|
|
|
135 |
|
Amortization of investment premiums, net of accretion of
discounts |
|
1,829 |
|
|
|
— |
|
Stock-based compensation, net of amounts capitalized |
|
87,233 |
|
|
|
1,259 |
|
Change in fair value of warrants liabilities |
|
(26,147 |
) |
|
|
— |
|
Change in fair value of contingent earn-out liability |
|
(136,043 |
) |
|
|
— |
|
Deferred income taxes |
|
69 |
|
|
|
— |
|
Allowance for doubtful accounts |
|
195 |
|
|
|
151 |
|
Loss on disposal of property, plant, and equipment |
|
— |
|
|
|
7 |
|
Other |
|
316 |
|
|
|
43 |
|
Changes in operating assets and liabilities, net of effects of
businesses acquired: |
|
|
|
Accounts receivable |
|
(3,426 |
) |
|
|
(2,918 |
) |
Inventories |
|
(881 |
) |
|
|
1,024 |
|
Prepaid expenses and other assets |
|
(2,946 |
) |
|
|
(1,269 |
) |
Accounts payable |
|
2,367 |
|
|
|
1,466 |
|
Deferred revenue |
|
2,641 |
|
|
|
3,024 |
|
Accrued expenses and other liabilities |
|
3,682 |
|
|
|
920 |
|
Net cash used in operating activities |
|
(58,278 |
) |
|
|
(2,631 |
) |
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
Purchases of property and equipment |
|
(866 |
) |
|
|
(326 |
) |
Capitalized software and development costs |
|
(7,086 |
) |
|
|
(3,256 |
) |
Purchase of investments |
|
(87,997 |
) |
|
|
— |
|
Maturities of investments |
|
160,124 |
|
|
|
— |
|
Investment in convertible notes |
|
— |
|
|
|
(1,000 |
) |
Business acquisitions, net of cash acquired |
|
(30,020 |
) |
|
|
— |
|
Net cash provided by (used in) investing activities |
|
34,155 |
|
|
|
(4,582 |
) |
CASH FLOW FROM
FINANCING ACTIVITIES: |
|
|
|
Payment of transaction costs related to reverse
recapitalization |
|
— |
|
|
|
(1,204 |
) |
Proceeds from sales of shares through employee equity incentive
plans |
|
4,892 |
|
|
|
1,342 |
|
Payments for taxes related to net settlement of equity awards |
|
(34,424 |
) |
|
|
— |
|
Proceeds from exercise of warrants |
|
27,844 |
|
|
|
— |
|
Repayment of debt |
|
— |
|
|
|
(2,390 |
) |
Other |
|
76 |
|
|
|
— |
|
Net cash used in financing activities |
|
(1,612 |
) |
|
|
(2,252 |
) |
Net change in cash, cash
equivalents, and restricted cash |
|
(25,735 |
) |
|
|
(9,465 |
) |
Effect of exchange rate
changes on cash |
|
(329 |
) |
|
|
(104 |
) |
Cash, cash equivalents, and
restricted cash at beginning of year |
|
139,987 |
|
|
|
52,250 |
|
Cash, cash equivalents, and
restricted cash at end of period |
$ |
113,923 |
|
|
$ |
42,681 |
|
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, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
GAAP net income/(loss) |
|
$ |
(64,634 |
) |
|
$ |
(6,209 |
) |
|
$ |
7,270 |
|
|
$ |
(9,081 |
) |
Stock-based compensation
expense(1) |
|
|
32,889 |
|
|
|
601 |
|
|
|
88,977 |
|
|
|
1,259 |
|
Acquisition-related
costs(2) |
|
|
900 |
|
|
|
— |
|
|
|
1,072 |
|
|
|
— |
|
Amortization expense of
acquired intangible assets |
|
|
265 |
|
|
|
— |
|
|
|
525 |
|
|
|
— |
|
Change in fair value of
warrants liabilities(3) |
|
|
(4,714 |
) |
|
|
— |
|
|
|
(26,147 |
) |
|
|
— |
|
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 |
|
$ |
(35,294 |
) |
|
$ |
(5,608 |
) |
|
$ |
(63,182 |
) |
|
$ |
(7,822 |
) |
|
|
|
|
|
|
|
|
|
GAAP net income (loss) per
share attributable to common stockholders: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.23 |
) |
|
$ |
(0.15 |
) |
|
$ |
0.03 |
|
|
$ |
(0.22 |
) |
Diluted |
|
$ |
(0.23 |
) |
|
$ |
(0.15 |
) |
|
$ |
0.02 |
|
|
$ |
(0.22 |
) |
Non-GAAP net loss per share
attributable to common stockholders, basic and diluted |
|
$ |
(0.12 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.05 |
) |
|
|
|
|
|
|
|
|
|
GAAP weighted-average shares
used to compute net income (loss) per share, basic |
|
|
283,405 |
|
|
|
41,348 |
|
|
|
279,289 |
|
|
|
40,490 |
|
Weighted-average effect of
potentially dilutive securities(6) |
|
|
— |
|
|
|
— |
|
|
|
34,545 |
|
|
|
— |
|
GAAP weighted-average shares
used to compute net income (loss) per share, diluted |
|
|
283,405 |
|
|
|
41,348 |
|
|
|
313,834 |
|
|
|
40,490 |
|
Excluded anti-dilutive
weighted-average potential shares of common stock in calculating
non-GAAP loss per share |
|
|
— |
|
|
|
— |
|
|
|
(34,545 |
) |
|
|
— |
|
Adjustment for common stock
issued in connection with the merger(7) |
|
|
— |
|
|
|
127,499 |
|
|
|
— |
|
|
|
127,499 |
|
Non-GAAP weighted-average
shares used to compute net loss per share, basic and diluted |
|
|
283,405 |
|
|
|
168,847 |
|
|
|
279,289 |
|
|
|
167,989 |
|
|
|
|
|
|
|
|
|
|
(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
https://www.globenewswire.com/NewsRoom/AttachmentNg/feca6b90-2fd3-4ac3-96c2-4a312e082011
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