Matterport Announces Second Quarter 2022 Financial Results, with Stronger-than-Expected Subscription Revenue and Non-GAAP EPS

·14 min read
Matterport Inc
Matterport Inc

Matterport Q2 2022 Infographic

Matterport Q2 2022 Infographic
Matterport Q2 2022 Infographic
  • Subscription revenue rose 20% year-over-year, above Company guidance

  • Services revenue increased 74% year-over-year

  • Q2 GAAP loss per share of $0.23

  • Non-GAAP loss per share of $0.12, better than Company guidance

  • Matterport increases full year revenue guidance range to $132 to $138 million, narrows full year guidance range for non-GAAP loss per share to $0.46 to $0.50

  • Balance sheet remains strong with $562 million cash and investments and no debt

SUNNYVALE, Calif., Aug. 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 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 2022
Guidance

FY 2022
Guidance

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, CFA
VP, Investor Relations
ir@matterport.com

Media Contact:

Toru Levinson
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,

 

 

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