Since its founding in 2011, Matterport, headquartered in Sunnyvale, California, has been a first mover in digitizing, accessing and managing buildings, spaces and places online, with their 3D capture technology and AI-powered insights. Their platform uses spatial data collected from a wide variety of digital capture devices to transform physical buildings and spaces into dimensionally accurate, photorealistic digital twins that provide their subscribers with access to previously unavailable building information and insights.
Millions of buildings 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.
The company, which initially sold 3D cameras, has since expanded its services to capturing 360-degree images for diverse stakeholders across the built world. The Matterport platform is designed to work with a wide range of LiDAR, spherical, 3D and 360 cameras, as well as smartphones, to suit the capture needs of all of our subscribers.
Their value proposition to subscribers is designed to serve the entirety of the digital building lifecycle, from design and build to maintenance and operations, promotion, sale, lease, insure, repair, restore, secure and finance. The firm went public on the NASDAQ (MTTR) through a SPAC merger with Gores Holding VI, Inc. in July 2021.
As of December 31, 2022, Matterport’s subscriber base had grown approximately 39% to over 701,000 subscribers from 503,000 subscribers as of December 31, 2021, with their digital twins reaching more than 170 countries.
They have digitized more than 28 billion square feet of space with approximately 9.2 million spaces under management across multiple industries, representing significant scale and growth over the rest of the market. The firm reported 590 employees as of 31 December 2022.
Matterport Financial Results
Total revenue increased by approximately 22% to $136.1 million for the year ended December 31, 2022, from approximately $111.2 million for the year ended December 31, 2021. The increase in revenue is attributable to an increase in service, subscription, and product revenue, partially offset by a decrease in license revenue.
Subscription revenue, accounting for approximately 54% of total revenue in 2022, increased by $12.5 million, or 20%, to $73.8 million for the year ended December 31, 2022, from $61.3 million for the prior year, primarily due to higher volume of subscription plans from new and expansion of the subscription by existing subscribers.
Gross profit decreased by $8.1 million or 14%, to $51.8 million for the year ended December 31, 2022, from $60.0 million for the year ended December 31, 2021, primarily attributable to certain disruptive and incremental costs due to global supply chain constraints in fiscal year 2022.
In 2023, the company expects strong growth year, with annual revenue between $153 and $169 million, while continuing to drive toward profitability.
Two acquisitions were completed in 2022:
- In January 2022, the acquisition of Enview, a privately-held company engaged in the development of artificial intelligence algorithms to identify natural and man-made features in geospatial data using various techniques, was completed. The total purchase consideration for the Enview Acquisition was $64.3 million.
- In June 2022, VHT Studios, a US-based real estate marketing company that offers brokerages and agents digital solutions to promote and sell properties, was acquired. With this acquisition, the Company aims to increase adoption of digital twin technology and expand further into the residential real estate industry while adding marketing services for other key markets such as commercial real estate, travel and hospitality, and the retail sector. Under the terms of the Purchase Agreement, the consideration consisted of an all-cash purchase price of $23.0 million subject to certain adjustments.
In January 2023, Matterport announced that John Deere had agreed to use their Digital Twin Platform to build a Virtual Operations Center for remote management of over 60 facilities across North America, South America, Europe and Asia. Matterport’s platform creates simulated digital replicas of John Deere manufacturing facilities, where teams can remotely track progress, plan for site changes, and collaborate remotely to optimize facility operations.
With the vast majority of buildings and spaces remaining undigitized - less than 0.1% of global building stock, Matterport estimates its total addressable market to be more than 4 billion buildings and 20 billion spaces globally, yielding a more than $240 billion market opportunity.
As a first mover in digital twin creation and spatial data library construction, we see significant opportunities for Matterport to continue leading the digitization of the built environment.
This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.