Executive Summary

Q1 2024 delivered solid SaaS-driven growth: subscription revenue rose 21% YoY to a record $24.0M, total revenue was $39.9M, non-GAAP net loss per share improved to $0.01, and ARR reached $96.0M .
KPIs continued to inflect: total subscribers hit 1.0M (+30% YoY), spaces under management reached 12.3M (+24%), square feet under management rose to 40.7B (+35%), and net dollar expansion was 107% .
Management suspended Q2 and FY24 guidance and did not hold a Q1 call due to the pending acquisition by CoStar; prior guidance from Q4’23 (Q1 revenue $39–$41M, subscription $24.0–$24.2M, non-GAAP EPS $(0.04)–$(0.02)) was effectively met or exceeded on EPS .
A major strategic catalyst emerged: CoStar agreed to acquire Matterport in a $5.50/share cash-and-stock deal (EV ≈ $1.6B), positioning the platform for scaled AI/digital twin deployment across CoStar marketplaces; guidance suspension and absence of a Q1 call reflect transaction focus .

What Went Well and What Went Wrong

What Went Well

Subscription mix and efficiency: subscription revenue hit $24.0M (+21% YoY) and exceeded 60% of total revenue, demonstrating SaaS mix elevation and margin leverage; CFO highlighted non-GAAP loss per share improvement to $0.01 as an 86% YoY improvement .
Scaled KPIs: one million subscribers milestone, 12.3M spaces, 40.7B sq ft managed, and net dollar expansion of 107% reflect strong platform adoption and cohort expansion .
Cost discipline and cash improvement: cash used in operating activities improved 81% YoY to $3.8M, underscoring operational focus and traction toward cash flow breakeven; CFO emphasized commitment to profitability .

What Went Wrong

Hardware/product revenue down YoY: product revenue fell to $6.8M vs $9.4M in Q1’23, aligning with strategic focus on SaaS mix but creating headwinds for total revenue growth composition .
Operating expenses remain elevated: GAAP SG&A was $45.5M and R&D $14.9M in Q1, pressuring GAAP loss from operations at $(40.8)M despite YoY improvement; non-GAAP adjustments are still significant (stock-based comp $30.7M) .
Guidance suspended and no earnings call: Q2 and FY24 guidance withdrawn and no Q1 call due to CoStar deal, reducing visibility for near-term investors versus prior quarter’s detailed outlook .

Financial Results

Revenue, EPS, and Profitability vs Prior Quarters

Metric	Q3 2023	Q4 2023	Q1 2024
Total Revenue ($USD Millions)	$40.642	$39.545	$39.872
Subscription Revenue ($USD Millions)	$22.850	$23.673	$24.015
Services Revenue ($USD Millions)	$9.936	$8.297	$9.103
Product Revenue ($USD Millions)	$7.828	$7.547	$6.754
Gross Profit ($USD Millions)	$19.897	$18.218	$19.592
GAAP EPS	$(0.15)	$(0.14)	$(0.12)
Non-GAAP EPS	$(0.04)	$(0.04)	$(0.01)

Note: Q4 2023 gross margin was 53% (company disclosed) . Q1 2024 gross margin approximates 49% (gross profit $19.592 / revenue $39.872) based on reported figures .

Segment Breakdown (Revenue)

Segment	Q3 2023	Q4 2023	Q1 2024
Subscription ($USD Millions)	$22.850	$23.673	$24.015
Services ($USD Millions)	$9.936	$8.297	$9.103
Product ($USD Millions)	$7.828	$7.547	$6.754
Total ($USD Millions)	$40.642	$39.545	$39.872

KPIs

KPI	Q3 2023	Q4 2023	Q1 2024
Annualized Recurring Revenue (ARR) ($USD Millions)	$91.4	$94.7	$96.0
Net Dollar Expansion Rate (%)	—	109%	107%
Total Subscribers (Millions)	0.887	0.938 (FY-end)	1.000
Spaces Under Management (Millions)	11.1	11.7 (FY-end)	12.3
Square Feet Under Management (Billions)	—	38.0 (FY-end)	40.7
Cash Used in Operating Activities ($USD Millions)	—	$10.4 (Q4)	$3.8 (Q1)
Cash & Investments ($USD Millions)	—	$423 (Q4)	$419 (Q1)

Guidance Changes

Metric	Period	Previous Guidance (as of Q4 2023)	Current Guidance (Q1 2024)	Change
Total Revenue ($M)	Q1 2024	$39–$41	Actual $39.9	Achieved vs range
Subscription Revenue ($M)	Q1 2024	$24.0–$24.2	Actual $24.0	In range
Non-GAAP EPS	Q1 2024	$(0.04)–$(0.02)	Actual $(0.01)	Beat
Total Revenue ($M)	FY 2024	$173–$183	Guidance suspended	Lowered/withdrawn
Subscription Revenue ($M)	FY 2024	$104–$106	Guidance suspended	Lowered/withdrawn
Non-GAAP EPS	FY 2024	$(0.11)–$(0.07)	Guidance suspended	Lowered/withdrawn

Management explicitly suspended Q2 and FY24 guidance and did not host a Q1 call due to the pending CoStar transaction .

Earnings Call Themes & Trends

Note: No Q1 2024 earnings call (company did not host) . Trends reflect Q3 2023 and Q4 2023 calls and Q1 2024 press release.

Topic	Previous Mentions (Q3 2023)	Previous Mentions (Q4 2023)	Current Period (Q1 2024)	Trend
AI/Technology Initiatives	Beta for AI-powered property reports; Procore/Autodesk integrations	Launch of “Property Intelligence,” next-gen intelligent digital twin; strong focus on AI strategy	Continues to highlight AI-driven Property Intelligence driving adoption and efficiency	Strengthening
Subscription Mix/Gross Margin	Subscription revenue up 20% YoY; margin progress noted	Subscription gross margin +300 bps; total gross margin 53%	Subscription $24.0M (+21% YoY); mix >60%; margin expansion commentary (no % disclosed)	Improving
Enterprise & Partnerships	New logos and global partnerships (Procore, Autodesk Premium Partner, Equinox/Composoluciones)	Partnerships with Vacasa, Visiting Media, Belden; AWS collaboration	New partnerships (Crunch Fitness, KnowHow) and large enterprise adoption examples	Expanding
Vertical Performance (Hospitality/Construction/FM)	Case studies in manufacturing; construction integrations	Hospitality partnerships (Vacasa, Visiting Media) and construction tools (CAD add-on, high-density scanning beta)	Continued deployments across hospitality, construction, facilities	Positive mix
Macro/Real Estate Headwinds	Navigating softer real estate environment	Resilience despite weak home sales; subscription growth and ARPA/NDR improvements	Focus on SaaS and efficiency; no macro change commentary in Q1 release	Resilient
Regulatory/Legal/Corporate	—	ESG report; operational efficiency	CoStar acquisition; proxy/S-4 process disclosures	Transformational M&A

Management Commentary

CEO: “Subscription revenue grew 21%, hitting a record $24 million… now represents more than 60% of our total revenue… we entered into a definitive agreement to be acquired by CoStar Group… we believe that this powerful combination will transform how properties are marketed, sold, and managed worldwide.” — RJ Pittman .
CFO: “Subscription revenue growth, gross margin expansion, and continued operating expense discipline drove our non-GAAP loss per share to $0.01… These results again demonstrate our commitment to profitability and the progress we’ve made toward achieving positive cash flow…” — JD Fay .
Transaction and guidance: Company will not hold a conference call, will not provide Q2 guidance, and is suspending FY24 guidance due to the pending CoStar acquisition .

Q&A Highlights

No Q1 2024 Q&A (no call held) . Context from Q4 2023 Q&A:

Go-to-market for Property Intelligence: two-pronged across existing enterprise/base and property marketing; initial pricing unchanged to drive adoption .
NDR drivers: expansion in enterprise/SMB cohorts and rising ARPA; expectation NDR can grow further .
Partner strategy: co-selling with Autodesk, AWS, Procore; building pipeline to accelerate scale in 2024 .
Product revenue/promotions: opportunistic use of demand pockets (e.g., Black Friday, Prime Day) to seed high-ARPA subscribers .
Pricing uplift contribution: ~half of NDR from mid-2023 price increases; rest from organic expansion; new customers at current pricing .

Estimates Context

S&P Global consensus estimates could not be retrieved due to a Capital IQ mapping issue for MTTR (attempted “Primary EPS Consensus Mean,” “Revenue Consensus Mean,” “EBITDA Consensus Mean” for Q1 2024); therefore, Wall Street consensus comparisons are unavailable. We attempted retrieval but no data was returned via S&P Global.
As a proxy, company-provided guidance from Q4’23 was essentially met on revenue and exceeded on non-GAAP EPS in Q1’24: revenue $39.9M vs $39–$41M guided; subscription $24.0M vs $24.0–$24.2M guided; non-GAAP EPS $(0.01) vs $(0.04)–$(0.02) guided .

Key Takeaways for Investors

SaaS mix shift is working: subscription now >60% of revenue with ARR at $96M and robust KPI growth; this underpins margin and cash flow trajectory .
Profitability path intact: non-GAAP EPS improved to $(0.01), cash used in ops improved 81% YoY; continued operating discipline supports breakeven goals even amid hardware softness .
Strategic catalyst: CoStar acquisition adds scale and distribution across Apartments.com/Homes.com; expect accelerated AI/digital twin adoption in property marketplaces post-close .
Near-term visibility lower: guidance suspended and no Q1 call reduce transparency pending deal; monitor regulatory/timing milestones and any integration updates .
Execution levers: property intelligence, partner co-selling (Autodesk/AWS/Procore), and enterprise “Essentials” should support NDR/ARPA expansion and durable growth in key verticals (hospitality, facilities, construction) .
Watch product dynamics: hardware revenues declined YoY; while consistent with SaaS focus, it can modestly temper total revenue growth—monitor camera upgrades (Pro3, high-density scanning) and monetization of AI add-ons .
Trading lens: deal spread/closing risk (proxy/S-4, approvals) and absence of standalone guidance may drive event-driven positioning; fundamentals show improving SaaS metrics and operating leverage that CoStar can amplify .

Matterport, Inc./DE (MTTR)·Q1 2024 Earnings Summary