On August 6, 2024, Matterport Inc (MTTR, Financial) released its 8-K filing for the second quarter of 2024. Matterport Inc is a spatial data company focused on digitizing and indexing the built world. Its all-in-one 3D data platform enables anyone to turn a space into an accurate and immersive digital twin which can be used to design, build, operate, promote, and understand any space. The Company recognizes revenue from subscription, license, services, and sale of products, with the majority generated from subscription fees.
Performance and Challenges
Matterport Inc reported total revenue of $42.2 million for Q2 2024, falling short of the analyst estimate of $44.40 million. However, the company achieved a non-GAAP net loss per share of $0.02, significantly better than the estimated loss of $0.13 per share. The company's net loss per share on a GAAP basis was $0.45.
The company continues to face challenges in managing operating expenses and achieving profitability. Despite these hurdles, Matterport's strategic focus on subscription revenue growth and product innovation has shown promising results.
Financial Achievements
Matterport Inc's subscription revenue increased by 16% year-over-year, reaching a record $24.2 million and accounting for over 57% of total revenue. This growth underscores the company's strategic focus on expanding its recurring subscription revenue base.
Other notable achievements include:
- Annualized Recurring Revenue (ARR) hit a record $96.6 million, up 16% year-over-year.
- Total subscribers grew to 1.06 million, up 28% year-over-year.
- Square feet under management reached 44.0 billion, up 33% from the prior year.
Key Financial Metrics
Below are some key financial metrics from Matterport Inc's Q2 2024 earnings report:
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $42.2 million | $39.6 million |
| Subscription Revenue | $24.2 million | $20.9 million |
| Net Loss (GAAP) | $(141.6) million | $(56.5) million |
| Non-GAAP Net Loss | $(6.4) million | $(21.5) million |
| Non-GAAP Net Loss Per Share | $(0.02) | $(0.07) |
Commentary and Analysis
"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."
Despite the revenue shortfall, Matterport Inc's focus on subscription revenue and product innovation has yielded positive results. The company's strategic initiatives, such as Project Genesis and Property Intelligence, have been well received by customers and partners, indicating a strong potential for future growth.
Recent Business Highlights
Matterport Inc announced several key business developments, including:
- The acquisition by CoStar Group in a cash and stock transaction valued at approximately $2.1 billion.
- The launch of avoided emissions reporting for select enterprise customers.
- Partnerships with Crunch Fitness and BMO to leverage Matterport's digital twin platform.
- Achievement of Amazon Web Services (AWS) IoT Competency status.
These developments highlight Matterport Inc's commitment to innovation and strategic growth, positioning the company well for future success in the digital transformation of the built world.
Explore the complete 8-K earnings release (here) from Matterport Inc for further details.
