Matterport, Inc./DE (MTTR)·Q3 2024 Earnings Summary

Executive Summary

• Record quarter: Revenue reached $43.8M (+8% YoY), ARR crossed $100M ($101.5M), and non-GAAP EPS improved to $(0.01), near breakeven .
• Mix/scale: Subscription revenue grew to $25.4M (+11% YoY) with total subscribers at 1.1M (+25% YoY); square feet under management rose to 47.3B (+34% YoY) .
• Profitability trajectory: GAAP net loss improved 14% YoY to $(38.4)M; non-GAAP net loss narrowed to $(2.4)M with disciplined OpEx and gross margin stabilization .
• Guidance and corporate: No earnings call or financial guidance due to pending CoStar acquisition; close expected in Q4’24 or Q1’25, subject to HSR and other conditions .
• Potential stock catalysts: ARR milestone and AI-driven Fall 2024 Release adoption are positives; absence of guidance/call and merger timing remain key narrative drivers .

What Went Well and What Went Wrong

What Went Well

• Efficient growth with records: “Record total revenue of $43.8 million” and ARR “hitting a record $101.5 million” as subscribers and managed square footage scaled to new highs .
• Product velocity and AI: Fall 2024 Release introduced AI features (one‑click defurnishing, automated descriptions) and workflow tools (3D model merge, field tags, bill‑back processing), with CEO noting “customers raving” and setting the stage for 2025 product‑led growth .
• Profitability progress: CFO highlighted “near break‑even results, yielding a non‑GAAP loss per share of just $0.01,” reflecting gross profit improvement and OpEx discipline .

What Went Wrong

• No guidance or call: Company continued to suspend guidance and did not host an earnings call due to the pending CoStar transaction, limiting forward visibility and investor engagement .
• GAAP profitability: While improving YoY, GAAP net loss remained significant at $(38.4)M; YTD GAAP results also reflect earlier Q2 litigation expense ($95M) not adjusted out of GAAP .
• Hardware softness: Product revenue declined YoY in Q3 ($7.3M vs $7.8M), consistent with the shift toward higher‑margin subscription mix, but still a drag on total growth .

Financial Results

Income statement summary and margins

Notes: Q2 GAAP loss includes $95M litigation expense; non‑GAAP excludes stock‑based comp, litigation, acquisition‑related costs, warrant FV changes, and intangible amortization .

Segment revenue breakdown

KPIs

Guidance Changes

Matterport has suspended financial guidance since Q1’24 and did not reinstate guidance in Q2 or Q3 due to the pending CoStar transaction .

Context: Company did not host an earnings call and will not provide quarterly guidance while the CoStar acquisition is pending .

Earnings Call Themes & Trends

No earnings call or webcast was held for Q1–Q3 2024 due to the pending CoStar transaction . Thematic progression below reflects company press releases.

Management Commentary

• “Total square feet managed reached 47.3 billion, up 34% year‑over‑year, with annual recurring revenue hitting a record $101.5 million, an 11% increase year‑over‑year.” – RJ Pittman, Chairman & CEO .
• “Our Fall 2024 Release introduced groundbreaking AI‑powered tools… With one‑click defurnishing and automated property descriptions… Features like 3D model merge, field tags, and bill‑back processing bring unmatched speed, efficiency, and precision…” – RJ Pittman .
• “Our strong third quarter performance propelled the company to a new record for total revenue, $43.8 million… yielding a non‑GAAP loss per share of just $0.01… underscoring our commitment to growth and profitability.” – JD Fay, CFO .
• On corporate actions and visibility: no conference call or guidance while the CoStar transaction remains pending; expected close in Q4’24 or Q1’25 subject to HSR and other closing conditions .

Q&A Highlights

• No Q&A was held; the company did not host an earnings call or webcast for Q3 (also the case in Q1 and Q2) due to the pending CoStar transaction .
• Key clarifications provided in the press release: guidance remains suspended; transaction timing and conditions reiterated (HSR waiting period, other closing conditions, expected close window) .

Estimates Context

• S&P Global consensus estimates could not be retrieved for MTTR due to a mapping issue at the time of analysis; as a result, beat/miss versus consensus for Q3 2024 is unavailable.
• Given record revenue ($43.8M), ARR ($101.5M), and non‑GAAP EPS near breakeven at $(0.01), sell‑side models may focus on recurring revenue durability and subscription margin trajectory into close, but formal guidance is suspended .
• Note: We attempted to fetch S&P Global consensus figures; they were unavailable at this time.

Key Takeaways for Investors

• ARR surpassed $100M and subscription revenue continues to expand—evidence that the core SaaS engine is compounding despite limited hardware growth .
• Non‑GAAP profitability is within striking distance of breakeven (Q3 non‑GAAP EPS $(0.01)) amid gross margin stabilization and operating cost discipline .
• Product cycle momentum is strong: Fall 2024 AI features should support workflow adoption and subscription stickiness across real estate and enterprise use cases .
• One‑time Q2 litigation expense created a GAAP loss spike; Q3 results normalize that picture and reinforce the non‑GAAP improvement trend .
• No guidance and no call reduce near‑term visibility; merger closing (Q4’24/Q1’25 target window) is the dominant near‑term catalyst and risk factor (regulatory timing) .
• Trading implication: in the absence of guidance, narrative hinges on ARR growth durability and progress toward the CoStar close; any regulatory updates or product adoption data points can move the stock .
• Medium‑term thesis: a larger distribution platform post‑close could accelerate digital twin adoption; execution focus remains on subscription growth, margin expansion, and AI‑driven product differentiation .

Appendix: Additional Detail

YoY growth (for context)

• Q3 2024 revenue +8% YoY ($43.8M vs $40.6M); subscription +11% YoY ($25.4M vs $22.9M) .
• Q2 2024 revenue +6.7% YoY ($42.2M vs $39.6M); subscription +15.6% YoY ($24.2M vs $20.9M) .
• Q1 2024 revenue +4.9% YoY ($39.9M vs $38.0M); subscription +21% YoY ($24.0M vs $19.9M) .

Corporate and ESG highlights in period

• Continued customer and partner momentum in construction, financial services, and MLS platforms; AWS IoT Competency achieved in Q2 .
• ESG focus and avoided emissions reporting for enterprises noted in Q2; ESG report update mentioned in Q3 .