In this Research Note, we examine Matterport, the spatial data company digitizing the built world, based on investor presentations, 10K Annual Report and press releases.

Since its founding in 2011, Matterport, headquartered in Sunnyvale, California, has been a first mover in digitizing, accessing and managing buildings and spaces, with their 3D capture technology and AI-powered insights. Their platform uses spatial data collected from a wide variety of digital capture devices to create dimensionally accurate, photorealistic digital twins that provide their subscribers with access to previously unavailable building information and insights. These immersive Matterport digital twins should improve various parts 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 subscribers.

The firm went public on the NASDAQ (MTTR) through a SPAC merger with Gores Holding VI, Inc.  in July 2021. As a result, Matterport has received approximately $605 million total cash, net of fees and expenses paid in connection with the closing of the business combination.

Current clients include:

• Real estate agencies, including Keller Williams, RE/MAX, Sotheby’s International Realty and Engel & Völkers. Use cases include visual walkthroughs and digital marketing of property listings.
• Insurance companies – to fully document any insurance claim.
• Real estate service firms such as JLL and Cushman & Wakefield. Use cases include spatial data capture services, facilities management and building due diligence.
• Building services firms in the retail sector, such as Apex, who digitize entire store portfolios to give retailers intelligence on their building assets at any point in time.

By December 31, 2021, their subscriber base had grown to over 503,000 subscribers. They have digitized more than 20 billion square feet of space in 177 countries across multiple industries, representing what they claim to be the largest and most accurate library of spatial data in the world. 

Matterport estimates that less than 0.1% of global building stock (over 4 billion buildings and 20 billion spaces) is digitized. 

In 2021, revenue increased from $85.9 million for the year ended December 31, 2020 to $111.2 million for the year ended December 31, 2021, representing 29% year-over-year growth. The increase in revenue is attributable to growth from subscription, license, and services revenues, offset by a decrease in product revenue. The company incurred net losses of $338.1 million and $14.0 million for the years ended December 31, 2021 and 2020, respectively.  The firm reported 485 employees as of 31 December 2021.

The acquisition of Enview, Inc., a provider of scalable, artificial intelligence (AI) for 3D spatial data, was completed in January 2022.  Founded in San Francisco in 2015, Enview’s 3D AI platform has been deployed to solve challenges ranging from critical infrastructure protection for Fortune 500 energy companies, automating property analytics for insurance and disaster recovery applications, and logistics and mobility applications for national security customers. The acquisition of the technology and team will enable Matterport to speed the development of its spatial data analytics platform that optimizes the operations and management of physical space.

In 2022, the company expects continued growth, with total revenue between $125 and $135 million. Recurring subscription revenue is expected to be between $80 and $82 million, translating to 31% to 34% year-over-year growth.

Matterport has a first mover advantage - however, its future growth and success will depend on the continuing rapid adoption of spatial data in this relatively new and rapidly evolving market.

This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.