Matterport Announces Record Third Quarter 2022 Financial Results
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Matterport Announces Record Third Quarter 2022 Financial Results

SUNNYVALE, Calif., Nov. 10, 2022 (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 record financial results for the quarter ended September 30, 2022.

“We delivered outstanding third quarter results, with record total revenue, demonstrating that our strategy is working,” said RJ Pittman, Chairman and Chief Executive Officer of Matterport. “We successfully launched our new Enterprise Essentials subscription suite as well as our new, high speed, LiDAR-enabled, Pro3 camera, which began shipping in the third quarter. We also completed the acquisition of VHT Studios, which brings together an industry-leading real estate marketing platform with Matterport’s immersive digital twin technologies. Further, customer demand remained robust in the quarter as enterprises leveraged the deflationary power of Matterport digital twins to improve operating efficiency and productivity, resulting in strong revenue growth across our target markets,” Pittman added.

“We saw strength across all of our revenue lines in the quarter, and combined with our focus on operating efficiency, we delivered financial results that exceeded our expectations on both the top and bottom lines,” said JD Fay, Chief Financial Officer of Matterport. “Subscription revenue grew to a record $19.0 million and services revenue grew 204% year-over-year, to a record $10.0 million. In addition, we were able to ship through our product order backlog during the third quarter. Finally, our focus on operational efficiency began yielding savings a quarter earlier than planned, and with our strong revenue growth, enabled non-GAAP net loss to improve by 24% sequentially, resulting in a narrower loss relative to our guidance range.”

Third Quarter 2022 Financial Highlights

Recent Business Highlights

Fourth Quarter and Full Year 2022 Outlook

 Q4 2022
Guidance		FY 2022
Guidance
Revenue (in millions)$39 — $41$134 — $136
Subscription revenue (in millions)$19 — $19.2$73.5 — $73.7
Non-GAAP loss per share($0.09) - ($0.11)($0.41) - ($0.43)
Weighted average fully diluted shares outstanding (in millions)290284
   

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 expense, fair value change of warrants liabilities, fair value change of earn-out liabilities, payroll tax related to contingent earn-out share issuance, acquisition-related costs, 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 loss per share attributable to common stockholders, basic and diluted, 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.

Conference Call Information

Matterport will host a conference call for analysts and investors to discuss its financial results for the third 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. The dial-in number will be (412) 902-4209, conference ID: 10171665.

The financial results press release and a live webcast of the conference call will be accessible from the Matterport website at investors.matterport.com. An audio webcast replay of the conference call will also be available for one year 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 our ability to grow market share in our existing markets or any new markets we may enter; our ability to respond to general economic conditions; our ability to manage our growth effectively; our success in retaining or recruiting our officers, key employees or directors, or changes required in the retention or recruitment of our officers, key employees or directors; the impact of the regulatory environment and complexities with compliance related to such environment; our ability to remediate our material weaknesses; factors relating to our business, operations and financial performance, including: the impact of the ongoing COVID-19 public health emergency or other infectious diseases, health epidemics and pandemics; our ability to maintain an effective system of internal controls over financial reporting; our ability to achieve and maintain profitability in the future; our ability to access sources of capital; our ability to maintain and enhance our products and brand, and to attract customers; our ability to manage, develop and refine our technology platform; the success of our strategic relationships with third parties; our history of losses and whether we will continue to incur continuing losses for the foreseeable future; our ability to protect and enforce our intellectual property rights; our ability to implement business plans, forecasts, and other expectations and identify and realize additional opportunities; our ability to attract and retain new subscribers; the size of the total addressable market for our 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 our industry; environmental uncertainties and risks related to adverse weather conditions and natural disasters; the volatility of the market price and liquidity of our Class A common stock and other securities; the increasingly competitive environment in which we operate; and other factors detailed under the section entitled “Risk Factors” in our 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 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:

Lindsay Savarese
Investor Relations
ir@matterport.com

Media Contact:

Steve Lombardi
press@matterport.com

MATTERPORT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

 Three Months Ended September 30, Nine Months Ended September 30,
  2022   2021   2022   2021 
Revenue:       
Subscription$18,981  $15,677  $54,508  $44,758 
License 21   118   70   4,477 
Services 10,015   3,292   19,001   8,860 
Product 8,976   8,568   21,405   25,992 
Total revenue 37,993   27,655   94,984   84,087 
Costs of revenue:       
Subscription 6,592   3,908   17,963   10,543 
License —   —   —   — 
Services 6,553   2,460   12,705   6,785 
Product 8,457   7,106   24,303   18,036 
Total costs of revenue 21,602   13,474   54,971   35,364 
Gross profit 16,391   14,181   40,013   48,723 
Operating expenses:       
Research and development 19,084   14,484   66,604   27,599 
Selling, general, and administrative 56,293   44,053   186,527   73,612 
Total operating expenses 75,377   58,537   253,131   101,211 
Loss from operations (58,986)  (44,356)  (213,118)  (52,488)
Other income (expense):       
Interest income 1,691   550   4,470   572 
Interest expense —   (91)  —   (676)
Transaction costs —   (565)  —   (565)
Change in fair value of warrants liabilities —   (24,176)  26,147   (24,176)
Change in fair value of contingent earn-out liability —   (98,478)  136,043   (98,478)
Other expense, net (981)  (839)  (3,655)  (1,186)
Total other income (expense) 710   (123,599)  163,005   (124,509)
Loss before provision for income taxes (58,276)  (167,955)  (50,113)  (176,997)
Provision for (benefit from) income taxes (17)  34   876   73 
Net loss$(58,259) $(167,989) $(50,989) $(177,070)
Net loss per share, basic and diluted$(0.20) $(0.86) $(0.18) $(1.90)
Weighted-average shares used in per share calculation, basic and diluted 286,458   196,478   281,729   93,061 
                

MATTERPORT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

 September 30, December 31,
  2022   2021 
ASSETS   
Current assets:   
Cash and cash equivalents$81,852  $139,519 
Restricted cash —   468 
Short-term investments 405,599   264,931 
Accounts receivable, net 19,515   10,879 
Inventories 11,677   5,593 
Prepaid expenses and other current assets 17,136   16,313 
Total current assets 535,779   437,703 
Property and equipment, net 28,555   14,118 
Operating lease right-of-use assets 2,802   — 
Long-term investments 7,737   263,659 
Goodwill 69,593   — 
Intangible assets, net 11,332   — 
Other assets 4,615   3,696 
Total assets$660,413  $719,176 
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Current liabilities   
Accounts payable$9,456  $12,227 
Deferred revenue 14,553   11,074 
Accrued expenses and other current liabilities 22,500   10,026 
Total current liabilities 46,509   33,327 
Warrants liability 1,691   38,974 
Contingent earn-out liability —   377,576 
Deferred revenue, non-current 562   874 
Other long-term liabilities 5,824   262 
Total liabilities 54,586   451,013 
Stockholders’ equity:   
Common stock$29  $25 
Additional paid-in capital 1,132,423   737,735 
Accumulated other comprehensive loss (7,578)  (1,539)
Accumulated deficit (519,047)  (468,058)
Total stockholders’ equity 605,827   268,163 
Total liabilities and stockholders’ equity$660,413  $719,176 
        

MATTERPORT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)

 Nine Months Ended September 30,
  2022   2021 
CASH FLOWS FROM OPERATING ACTIVITIES   
Net loss$(50,989) $(177,070)
Adjustments to reconcile net loss to net cash used in operating activities:   
Depreciation and amortization 9,237   4,121 
Amortization of debt discount —   135 
Amortization of investment premiums, net of accretion of discounts 2,517   413 
Stock-based compensation, net of amounts capitalized 116,738   31,997 
Change in fair value of warrants liabilities (26,147)  24,176 
Change in fair value of contingent earn-out liability (136,043)  98,478 
Deferred income taxes (27)  — 
Transaction costs —   565 
Loss on extinguishment of debt and convertible notes —   210 
Allowance for doubtful accounts 343   460 
Other 681   193 
Changes in operating assets and liabilities, net of effects of businesses acquired:   
Accounts receivable (7,379)  (6,100)
Inventories (6,135)  (342)
Prepaid expenses and other assets (5,348)  (7,699)
Accounts payable (4,154)  3,427 
Deferred revenue 3,167   4,503 
Accrued expenses and other liabilities 4,181   1,442 
Net cash used in operating activities (99,358)  (21,091)
CASH FLOWS FROM INVESTING ACTIVITIES:   
Purchases of property and equipment (1,417)  (536)
Capitalized software and development costs (9,890)  (5,233)
Purchase of investments (87,997)  (466,466)
Maturities of investments 194,241   — 
Investment in convertible notes —   (1,000)
Business acquisitions, net of cash acquired (51,874)  — 
Net cash provided by (used in) investing activities 43,063   (473,235)
CASH FLOW FROM FINANCING ACTIVITIES:   
Proceeds from reverse recapitalization and PIPE financing, net —   612,854 
Payment of transaction costs related to reverse recapitalization —   (9,813)
Proceeds from sales of shares through employee equity incentive plans 5,292   1,696 
Payments for taxes related to net settlement of equity awards (34,424)  — 
Proceeds from exercise of warrants 27,844   — 
Repayment of debt —   (13,067)
Other 76   — 
Net cash provided by (used in) financing activities (1,212)  591,670 
Net change in cash, cash equivalents, and restricted cash (57,507)  97,344 
Effect of exchange rate changes on cash (628)  (273)
Cash, cash equivalents, and restricted cash at beginning of year 139,987   52,250 
Cash, cash equivalents, and restricted cash at end of period$81,852  $149,321 
        

MATTERPORT, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
(unaudited)

  Three Months Ended September 30, Nine Months Ended September 30,
   2022   2021   2022   2021 
GAAP net loss $(58,259) $(167,989) $(50,989) $(177,070)
Stock-based compensation expense (1)  30,671   30,738   119,648   31,997 
Acquisition-related costs (2)  222   —   1,294   — 
Amortization expense of acquired intangible assets  443   —   968   — 
Change in fair value of warrants liabilities (3)  —   24,176   (26,147)  24,176 
Transaction costs(4)  —   565   —   565 
Change in fair value of contingent earn-out liability (5)  —   98,478   (136,043)  98,478 
Payroll tax related to contingent earn-out share issuance (6)  —   —   1,164   — 
Non-GAAP net loss $(26,923) $(14,032) $(90,105) $(21,854)
         
GAAP net loss per share attributable to common stockholders, basic and diluted $(0.20) $(0.86) $(0.18) $(1.90)
Non-GAAP net loss per share attributable to common stockholders, basic and diluted $(0.09) $(0.06) $(0.32) $(0.12)
         
GAAP weighted-average shares used to compute net loss per share, basic and diluted  286,458   196,478   281,729   93,061 
Adjustment for common stock issued in connection with the merger (7)  —   29,750   —   94,340 
Non-GAAP weighted-average shares used to compute net loss per share, basic and diluted  286,458   226,228   281,729   187,401 
                 

(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) Consists of the transaction costs associated with warrants instrument issuance

(5) Represents the non-cash fair-value measurement change related to our earn-out liability.

(6) Represents the payroll tax related to Earn-out shares issuance and release.

(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.


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