Matterport Announces Second Quarter 2023 Financial Results
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Matterport Announces Second Quarter 2023 Financial Results

SUNNYVALE, Calif., Aug. 08, 2023 (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 June 30, 2023.

“The second quarter execution was pivotal for the company this year. We delivered record subscription and services revenue while doubling-down on our efficiency initiatives to deliver step function productivity gains in the second half of 2023. Total revenue for the quarter grew to nearly $40 million, fueled by strong enterprise adoption and steady improvements with our small and medium-sized businesses,” said RJ Pittman, Chairman and Chief Executive Officer of Matterport. “Our strategic partnerships continue to drive pipeline, connect us to large industry ecosystems, open new technology distribution channels, and critically enhance our platform's functionality for customers. Our unmatched digital twin platform equips customers with crucial tools for managing and marketing their properties and facilities. By harnessing our extensive spatial data library, we expect our new AI solutions will generate breakthrough customer value and bolster our subscription revenue per account,” Pittman added.

“Our continued growth in total and subscription revenue as well as commitment to streamlining operations have propelled us to another quarter of exceptional bottom-line outperformance, delivering Non-GAAP loss per share toward the top end of guidance,” said JD Fay, Chief Financial Officer of Matterport. “Looking forward, our recent restructuring aims to fast-track our path to operational cash flow profitability to 2024, a full year ahead of our previous plan. These difficult and decisive steps reflect our dedication to constructing a sustainable business emphasizing long-term growth and profitability.”

Second Quarter 2023 Financial Highlights

Recent Business Highlights

Third Quarter and Full Year 2023 Outlook
The Company is providing the following financial guidance for the third quarter and full year 2023. The Company is raising its full year guidance for Non-GAAP loss per share driven by the Company’s continued focus on operating efficiency. This guidance will be discussed in greater detail on today’s conference call.

 Q3 2023
Guidance		FY 2023
Guidance
Total revenue (in millions)$38 — $40$155 — $159
Year-over-year growth0% - 5%14% - 17%
Subscription revenue (in millions)$21.8 — $22.0$85 — $86
Year-over-year growth15% - 16%15% - 17%
Non-GAAP loss per share$(0.07) - $(0.05)$(0.28) - $(0.24)
Weighted average fully diluted shares outstanding (in millions)303300


Matterport is not able to provide a reconciliation of non-GAAP loss per share to GAAP loss per share because Matterport does not provide specific guidance for the various exclusions adjusted from net loss. These items have not yet occurred, are out of Matterport’s control and/or cannot be reasonably predicted. As a result, reconciliation of the non-GAAP guidance measures to GAAP is not available without unreasonable effort, and Matterport is unable to address the probable significance of the unavailable information.

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, fair value change of earn-out liabilities, payroll tax related to contingent earn-out share issuance, acquisition-related 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. 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.

Conference Call Information
Matterport will host a conference call for analysts and investors to discuss its financial results for the second quarter 2023 today, August 8, 2023, 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 Matterport’s Investor Relations website at investors.matterport.com. The dial-in number will be (412) 902-4209, conference ID: 10176797.

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.

©2023 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; supply chain disruptions; 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:

Mike Knapp
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 June 30, Six Months Ended June 30,
  2023   2022   2023   2022 
Revenue:       
Subscription$20,868  $18,386  $40,715  $35,527 
License 27   26   54   49 
Services 10,684   5,013   19,388   8,986 
Product 7,988   5,056   17,404   12,429 
Total revenue 39,567   28,481   77,561   56,991 
Cost of revenue:       
Subscription 7,235   6,109   14,197   11,371 
License —   —   —   — 
Services 8,009   3,169   14,253   6,152 
Product 8,360   7,490   16,736   15,846 
Total cost of revenue 23,604   16,768   45,186   33,369 
Gross profit 15,963   11,713   32,375   23,622 
Operating expenses:       
Research and development 18,861   21,518   37,134   47,520 
Selling, general, and administrative 56,008   59,385   110,941   130,234 
Total operating expenses 74,869   80,903   148,075   177,754 
Loss from operations (58,906)  (69,190)  (115,700)  (154,132)
Other income (expense):       
Interest income 1,481   1,484   2,952   2,779 
Change in fair value of warrants liability (171)  4,714   51   26,147 
Change in fair value of contingent earn-out liability —   —   —   136,043 
Other income (expense), net 1,223   (1,353)  2,406   (2,674)
Total other income 2,533   4,845   5,409   162,295 
Income (loss) before provision for income taxes (56,373)  (64,345)  (110,291)  8,163 
Provision for income taxes 163   289   87   893 
Net income (loss)$(56,536) $(64,634) $(110,378) $7,270 
Net income (loss) per share attributable to common stockholders:       
Basic$(0.19) $(0.23) $(0.37) $0.03 
Diluted$(0.19) $(0.23) $(0.37) $0.02 
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:       
Basic 298,096   283,405   295,599   279,289 
Diluted 298,096   283,405   295,599   313,834 



 
MATTERPORT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 
 June 30, December 31,
  2023   2022 
ASSETS   
Current assets:   
Cash and cash equivalents$82,316  $117,128 
Short-term investments 363,295   355,815 
Accounts receivable, net 18,649   20,844 
Inventories 12,198   11,061 
Prepaid expenses and other current assets 7,236   13,084 
Total current assets 483,694   517,932 
Property and equipment, net 32,684   30,559 
Operating lease right-of-use assets 1,933   2,515 
Long-term investments —   3,959 
Goodwill 69,593   69,593 
Intangible assets, net 10,005   10,890 
Other assets 6,819   4,947 
Total assets$604,728  $640,395 
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Current liabilities   
Accounts payable$8,162  $8,331 
Deferred revenue 21,037   16,731 
Accrued expenses and other current liabilities 20,636   23,916 
Total current liabilities 49,835   48,978 
Warrants liability 752   803 
Deferred revenue, non-current 1,820   1,201 
Other long-term liabilities 819   5,502 
Total liabilities 53,226   56,484 
Commitments and contingencies   
Redeemable convertible preferred stock$—  $— 
Stockholders’ equity:   
Common stock 30   29 
Additional paid-in capital 1,242,360   1,168,313 
Accumulated other comprehensive loss (1,113)  (5,034)
Accumulated deficit (689,775)  (579,397)
Total stockholders’ equity 551,502   583,911 
Total liabilities and stockholders’ equity$604,728  $640,395 


 
MATTERPORT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
 
 Six Months Ended June 30,
  2023   2022 
CASH FLOWS FROM OPERATING ACTIVITIES   
Net income (loss)$(110,378) $7,270 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:   
Depreciation and amortization 9,102   5,563 
Amortization of investment premiums, net of accretion of discounts (2,319)  1,829 
Stock-based compensation, net of amounts capitalized 63,253   87,233 
Change in fair value of warrants liability (51)  (26,147)
Change in fair value of contingent earn-out liability —   (136,043)
Deferred income taxes (185)  69 
Allowance for doubtful accounts 49   195 
Loss of excess inventory and purchase obligation 1,592   — 
Other (225)  316 
Changes in operating assets and liabilities, net of effects of businesses acquired:   
Accounts receivable 2,146   (3,426)
Inventories (5,787)  (881)
Prepaid expenses and other assets 4,252   (2,946)
Accounts payable (169)  2,367 
Deferred revenue 4,925   2,641 
Accrued expenses and other liabilities 956   3,682 
Net cash used in operating activities (32,839)  (58,278)
CASH FLOWS FROM INVESTING ACTIVITIES:   
Purchases of property and equipment (101)  (866)
Capitalized software and development costs (5,248)  (7,086)
Purchase of investments (251,603)  (87,997)
Maturities of investments 254,601   160,124 
Business acquisitions, net of cash acquired (1,676)  (30,020)
Net cash provided by (used in) investing activities (4,027)  34,155 
CASH FLOW FROM FINANCING ACTIVITIES:   
Proceeds from sales of shares through employee equity incentive plans 2,195   4,892 
Payments for taxes related to net settlement of equity awards (329)  (34,424)
Proceeds from exercise of warrants —   27,844 
Other —   76 
Net cash provided by (used in) financing activities 1,866   (1,612)
Net change in cash, cash equivalents, and restricted cash (35,000)  (25,735)
Effect of exchange rate changes on cash 188   (329)
Cash, cash equivalents, and restricted cash at beginning of year 117,128   139,987 
Cash, cash equivalents, and restricted cash at end of period$82,316  $113,923 


 
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,
   2023   2022   2023   2022 
GAAP net income (loss) $(56,536) $(64,634) $(110,378) $7,270 
Stock-based compensation related charges (1)  34,449   32,889   67,560   88,977 
Acquisition-related costs (2)  —   900   —   1,072 
Amortization expense of acquired intangible assets  443   265   886   525 
Change in fair value of warrants liability (3)  171   (4,714)  (51)  (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 $(21,473) $(35,294) $(41,983) $(63,182)
         
GAAP net income (loss) per share attributable to common stockholders:        
Basic $(0.19) $(0.23) $(0.37) $0.03 
Diluted $(0.19) $(0.23) $(0.37) $0.02 
Non-GAAP net loss per share attributable to common stockholders, basic and diluted $(0.07) $(0.12) $(0.14) $(0.23)
         
Weighted-average shares used to compute GAAP net income (loss) per share, basic  298,096   283,405   295,599   279,289 
Weighted-average effect of potentially dilutive securities (6)  —   —   —   34,545 
Weighted-average shares used to compute GAAP net income (loss) per share, diluted  298,096   283,405   295,599   313,834 
Excluded anti-dilutive weighted-average potential shares of common stock in calculating non-GAAP loss per share  —   —   —   (34,545)
Weighted-average shares used to compute non-GAAP net loss per share, basic and diluted  298,096   283,405   295,599   279,289 


(1) Consists primarily of non-cash share-based compensation expense related to our stock incentive plans and earn-out arrangement, and the employer payroll taxes related to our stock options and restricted stock units.

(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 in the three months ended March 31, 2022.

(6) Consists of the potentially dilutive effect of employee equity incentive plan awards.


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