Matterport Trimmed Losses in Months Before CoStar Purchase
The company’s net loss was 36 percent less than in 2023, according to Matterport’s earnings from the quarter. Revenue rose 5 percent for the quarter.
At Inman Connect Las Vegas, July 30-Aug. 1, 2024, the noise and misinformation will be banished, all your big questions will be answered, and new business opportunities will be revealed. Join us.
Matterport lost $36 million in the first quarter of the year, a significant improvement compared to the same time a year earlier, as the company continued its expansion plans on the path to being acquired by CoStar.
The company’s net loss was 36 percent less than in 2023, according to Matterport’s earnings from the quarter, which were released on Monday.
Revenue rose just under 5 percent for the first three months of the year, reaching $39.9 million in the quarter.
“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,” JD Fay, chief financial officer of Matterport, said in a statement on Monday.
The company skipped holding a call with investors, which publicly traded businesses typically do in order to provide more insights into the challenges and opportunities ahead, while also explaining the previous quarter’s results. It also didn’t provide a guess for how it expects to perform moving forward, withholding that information while waiting for the CoStar acquisition to be finalized later this year.
The release comes two weeks after CoStar announced it would acquire Matterport for $1.6 billion, adding a significant amount of data about millions of homes and commercial spaces and a new tool it may offer to agents who use Homes.com.
The acquisition will pair two fast-growing companies which both have their sights set on acquiring market share.
“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,” Pittman said in a statement on Monday. “This transaction is another significant milestone that acknowledges the groundbreaking work Matterport has accomplished in 3D digital twin technology and AI-driven property intelligence.”
Matterport has been in an expansion stance in recent years as it sought to make clear the role that digital twins can play, not just in the real estate industry, but in business more broadly. The company said listings that offer digital twins sell faster and for more money by helping to give buyers more information about a property. It has also said that major businesses are now using the technology to monitor their commercial spaces anywhere in the world.
The effort to become the biggest name in the space meant the company was quickly growing revenue but not yet profitable.
Matterport reported earning $158 million last year. That was up 16 percent compared to 2022, but the company lost $65.8 million on the year.
The company is a goods and services company, selling its Pro3 cameras which are used to create the digital twins, and also selling subscriptions to brokerages, agents and other customers who use the technology to include in listings.
As of the end of last year, Matterport had 938,000 subscribers. That figure grew 30 percent over the past year, reaching 1 million as of the end of March, when the first quarter ended.
Product sales fell in the first quarter, with Matterport pulling in $6.7 million from camera sales compared to $9.4 million during the same time last year. Service revenue was up 4.5 percent in that time, and subscription revenue grew 21 percent.
At that time, the company said it had cataloged 40.7 billion square feet of buildings and spaces, 35 percent more than a year ago, and created 12.3 million digital twins, up 24 percent. Matterport says it has cataloged 100 times more space than its competitors.
Trimming its losses came from increased revenue overall and cutting expenses. Matterport reported spending $60.3 million in the quarter, down 17.5 percent from the year before.
