Matterport Announces First Quarter 2024 Financial Results

Annualized Recurring Revenue hits record $96 million, up 21% year-over-year
Net loss improved 33% year-over-year; Non-GAAP net loss improved 80% year-over-year
Cash used in operating activities improved 81% year-over-year
Net Dollar Expansion rate of 107%
Total subscribers reach 1.0 million, up 30% year-over-year
Square feet under management reached 40.7 billion, up 35% from prior year

SUNNYVALE, Calif., May 06, 2024 (GLOBE NEWSWIRE) -- 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, 2024.

“I'm pleased to announce our first quarter 2024 results, which reflect our continued success in driving efficient growth for the company,” said RJ Pittman, Chairman and Chief Executive Officer of Matterport. “Subscription revenue grew 21%, hitting a record $24 million for the period, and now represents more than 60% of our total revenue - emphasizing our focus to elevate the SaaS mix within our business,” Pittman added. “More recently, we announced that we entered into a definitive agreement to be acquired by CoStar Group. We are thrilled to join forces with CoStar, a long-standing customer and partner with a shared vision for transforming global real estate through technology and digitization. This transaction is another significant milestone that acknowledges the groundbreaking work Matterport has accomplished in 3D digital twin technology and AI-driven property intelligence. With CoStar Group's expansive reach and scale in property research and analytics and our joint commitment to innovation, we believe that this powerful combination will transform how properties are marketed, sold, and managed worldwide. Importantly, it offers Matterport's stockholders the opportunity to participate in the value creation and future growth prospects of our combined efforts.”

“Our first quarter results represent an excellent start to 2024. Subscription revenue growth, gross margin expansion, and continued operating expense discipline drove our non-GAAP loss per share to $0.01, which is an 86% year-on-year improvement. These results again demonstrate our commitment to profitability and the progress we’ve made toward achieving positive cash flow as we continue to drive adoption of Matterport digital twins,” said JD Fay, Chief Financial Officer of Matterport.

First Quarter 2024 Financial Highlights

Total subscribers reached 1.0 million, up 30% year-over-year
Square feet under management hit 40.7 billion, up 35% year-over-year
Spaces under management reached 12.3 million, up 24% year-over-year
Subscription revenue of $24.0 million, up 21% year-over-year
Annualized Recurring Revenue (ARR) was $96.0 million
Total revenue of $39.9 million
Net loss of $0.12 per share, a 33% improvement year-over-year
Non-GAAP net loss of $0.01 per share, an 86% improvement year-over-year
Cash used in operating activities was $3.8 million, an 81% improvement year-over-year
Net dollar expansion rate was 107%
Cash and investments of $419 million with no debt

Recent Business Highlights

Announced that Matterport has entered into a definitive agreement to be acquired by the CoStar Group.
Announced a partnership with Crunch Fitness, one of the largest fitness companies in North America, to use Matterport to ensure brand consistency across marketing materials for its U.S. franchise locations.
Announced reaching one million subscribers to its digital twin cloud platform. This significant milestone underscores Matterport's unwavering commitment to innovation and its strategic Capture Ubiquity initiative, which has propelled the company into a new era of growth and success.
Announced that Kikkoman Corporation, the world’s leading soy sauce producer, has adopted Matterport to create a digital twin of the company’s historic Goyogura soy sauce brewery.
Announced that ARTOGO, the largest virtual exhibition platform in Asia, is utilizing Matterport as its 3D technology of choice to revolutionize the arts sector.
Announced that Resi, the UK’s leading home extension company, has made Matterport’s Pro3 and Digital Twin Platform its technology of choice for surveying homes.
Announced a partnership with KnowHow to deliver comprehensive ‘just-in-time’ online system training for Matterport’s Digital Twin Platform to all KnowHow customers.

Transaction with CoStar Group, Inc.

Due to Matterport’s pending acquisition 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 first quarter 2024 financial results. In addition, the Company will not be providing financial guidance for the second quarter of fiscal year 2024 and is suspending its financial guidance for the full fiscal year 2024 in light of the pending transaction.

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, 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.

Investor Contact:
ir@matterport.com

Media Contact:
press@matterport.com

Important Additional Information Regarding the Proposed Transaction Will Be Filed with the SEC and Where to Find It

In connection with the proposed transaction among Matterport, CoStar and certain subsidiaries of CoStar (the “proposed transaction”), CoStar intends to file with the SEC a registration statement on Form S-4 (the “Registration Statement”) to register the shares of CoStar’s common stock to be issued in connection with the proposed transaction. The Registration Statement will include a document that serves as a prospectus of CoStar and proxy statement of Matterport (the “proxy statement/prospectus”), and each party will file other documents regarding the proposed transaction with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, INCLUDING THE PROXY STATEMENT/PROSPECTUS, AS EACH MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, AND OTHER RELEVANT DOCUMENTS FILED BY MATTERPORT AND COSTAR WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT MATTERPORT AND COSTAR, THE PROPOSED TRANSACTION, THE RISKS RELATED THERETO AND RELATED MATTERS.

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