Matterport Announces Record Third Quarter 2024 Financial Results

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ir@matterport.com

Media Contact:
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Forward-Looking Statements

This communication contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the proposed transaction, the products and services offered by Matterport and the markets in which Matterport operates, business strategies, debt levels, industry environment including the global supply chain, potential growth opportunities, and 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 communication, including the inability to consummate the proposed transaction with CoStar Group, Inc. (the “proposed transaction”) within the anticipated time period, or at all, due to any reason, including the failure to obtain required regulatory approvals, or to satisfy the other conditions to the consummation of the proposed transaction; the risk that the proposed transaction disrupts Matterport’s current plans and operations or diverts management’s attention from its ongoing business; the effects of the proposed transaction on Matterport’s business, operating results, and ability to retain and hire key personnel and maintain relationships with customers, suppliers and others with whom Matterport does business; the risk that Matterport’s stock price may decline significantly if the proposed transaction is not consummated; the nature, cost and outcome of any legal proceedings related to the proposed transaction; Matterport’s ability to grow market share in existing markets or any new markets Matterport may enter; Matterport’s ability to respond to general economic conditions; supply chain disruptions; Matterport’s ability to manage growth effectively; Matterport’s success in retaining or recruiting officers, key employees or directors, or changes required in the retention or recruitment of officers, key employees or directors; the impact of restructuring plans; the impact of the regulatory environment and complexities with compliance related to such environment; factors relating to Matterport’s business, operations and financial performance, including the impact of infectious diseases, health epidemics and pandemics; Matterport’s ability to maintain an effective system of internal controls over financial reporting; Matterport’s ability to achieve and maintain profitability in the future; Matterport’s ability to access sources of capital; Matterport’s ability to maintain and enhance Matterport’s products and brand, and to attract customers; Matterport’s ability to manage, develop and refine Matterport’s technology platform; the success of Matterport’s strategic relationships with third parties; Matterport’s history of losses and whether Matterport will continue to incur continuing losses for the foreseeable future; Matterport’s ability to protect and enforce Matterport’s intellectual property rights; Matterport’s success in defending or appealing any pending or future litigation, claims or demands; Matterport’s ability to implement business plans, forecasts, and other expectations and identify and realize additional opportunities; Matterport’s ability to attract and retain new subscribers; the size of the total addressable market for Matterport’s 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 Matterport’s industry; environmental uncertainties and risks related to adverse weather conditions and natural disasters; the volatility of the market price and liquidity of Matterport’s Class A common stock and other securities; the increasingly competitive environment in which Matterport operates; and other factors detailed under the section entitled “Risk Factors” in Matterport’s 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 SEC. 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.

MATTERPORT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
  
  Three Months Ended September
30,
  Nine Months Ended September
30,

 
  2024  2023  2024  2023 
Revenue:                           
Subscription $ 25,365     $ 22,878     $ 73,535     $ 63,647    
Services   11,085       9,936       31,069       29,324    
Product   7,343       7,828       21,277       25,232    
Total revenue   43,793       40,642       125,881       118,203    
Costs of revenue:                                
Subscription   8,236       7,379       24,124       21,576    
Services   7,445       6,725       21,748       20,978    
Product   6,412       6,641       19,337       23,377    
Total costs of revenue   22,093       20,745       65,209       65,931    
Gross profit   21,700       19,897       60,672       52,272    
Operating expenses:                                
Research and development   15,261       15,577       45,521       52,711    
Selling, general, and administrative   50,464       53,719       150,069       164,660    
Litigation expense               95,000          
Total operating expenses   65,725       69,296       290,590       217,371    
Loss from operations   (44,025 )     (49,399 )     (229,918 )     (165,099 )  
Other income (expense):                                
Interest income   3,211       1,573       8,098       4,525    
Change in fair value of warrants liability   169       513       (895 )     564    
Other income   2,311       2,669       6,762       5,075    
Total other income   5,691       4,755       13,965       10,164    
Loss before provision for income taxes   (38,334 )     (44,644 )     (215,953 )     (154,935 )  
Provision for income taxes   67       110       162       197    
Net loss $ (38,401 )   $ (44,754 )   $ (216,115 )   $ (155,132 )  
Net loss per share, basic and diluted $ (0.12 )   $ (0.15 )   $ (0.68 )   $ (0.52 )  
Weighted-average shares used in per share calculation, basic and
diluted
  321,151       303,432       317,002       298,226    
   



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