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MI

Matterport, Inc./DE (MTTR)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered record total revenue of $43.818M and ARR of $104.2M, with subscription revenue up 14% YoY and total subscribers reaching 1.2M, highlighting continued recurring growth and product-led adoption .
  • Non-GAAP EPS improved to -$0.02 (vs -$0.04 in Q4 2023), while GAAP EPS was -$0.12; gross profit rose to $22.241M, reflecting efficiency gains despite elevated OpEx and earlier litigation costs in 2024 .
  • Matterport did not hold an earnings call and maintained its suspension of guidance due to the pending CoStar acquisition, expected to close in Q1 2025; this transaction remains the primary stock narrative driver near term .
  • Product velocity remained a standout: the 2025 Winter Release and Marketing Cloud introduced AI-driven automation (e.g., one-click defurnish, Model Merge, tag management), which management positioned as catalysts for workflow efficiency and adoption in real estate marketing .
  • Wall Street consensus estimates via S&P Global were unavailable for MTTR due to a missing mapping, so estimate comparisons could not be performed (note explicitly unavailable) [GetEstimates error].

What Went Well and What Went Wrong

What Went Well

  • Record Q4 revenue ($43.818M) and ARR ($104.2M), with subscription revenue growth of 14% YoY and total subscribers at 1.2M, evidencing strengthening recurring revenue and platform scale .
  • Non-GAAP EPS improved 50% YoY to -$0.02; CFO emphasized “steadfast dedication to achieving strong revenue growth and profitability,” underscoring discipline in operating costs and progress toward breakeven .
  • Strong product momentum: “Matterport’s 2025 Winter Release redefines what’s possible for digital twins… With the launch of Matterport Marketing Cloud… one-click defurnish… tag management… Model Merge” — driving productivity and adoption across property workflows (CEO RJ Pittman) .

What Went Wrong

  • No earnings call and suspended guidance due to the pending CoStar acquisition, limiting near-term visibility on forward metrics (revenue, margins, OpEx) and removing typical guidance anchors .
  • FY2024 reported a significant litigation expense ($95.0M), materially inflating GAAP losses; while non-GAAP adjustments remove this, the GAAP optics remained a headwind across 2024 .
  • Operating loss remained sizable (-$43.936M in Q4), reflecting continued elevated SG&A of $50.767M despite improved gross profit; margin expansion will likely require further OpEx normalization post-transaction .

Financial Results

Summary Financials (oldest → newest)

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Total Revenue ($USD Millions)$39.545 $42.216 $43.793 $43.818
GAAP EPS ($USD)-$0.14 -$0.45 -$0.12 -$0.12
Non-GAAP EPS ($USD)-$0.04 -$0.02 -$0.01 -$0.02
Gross Profit ($USD Millions)$18.218 $19.380 $21.700 $22.241
Operating Loss ($USD Millions)-$49.140 -$145.109 -$44.025 -$43.936

Gross Profit Margin % (computed from reported figures; citations reference source data)

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Gross Profit Margin %46.1% 45.9% 49.6% 50.8%

Segment Revenue Breakdown (oldest → newest)

Segment ($USD Millions)Q4 2023Q2 2024Q3 2024Q4 2024
Subscription$23.701 $24.155 $25.365 $26.055
Services$8.297 $10.881 $11.085 $10.195
Product$7.547 $7.180 $7.343 $7.568
Total$39.545 $42.216 $43.793 $43.818

KPIs (oldest → newest)

KPIQ2 2024Q3 2024Q4 2024
Annualized Recurring Revenue (ARR, $USD Millions)$96.6 $101.5 $104.2
Total Subscribers (Millions)1.06 1.10 1.20
Square Feet Under Management (Billions)44.0 47.3 50.7
Spaces Under Management (Millions)13.0 13.6 14.1

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Overall Financial GuidanceFY 2024Suspended (pending CoStar acquisition) No guidance provided Maintained suspension
Overall Financial GuidanceQ1 2025N/A (no prior quarterly guidance due to transaction) No guidance provided Maintained suspension

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
AI/Technology InitiativesProject Genesis; Property Intelligence; AWS IoT Competency; workflow automation Fall 2024 Release: generative AI tools, one-click defurnish, 3D model merge, field tags, bill-back 2025 Winter Release; Marketing Cloud; one-click defurnish; Model Merge; tag management Accelerating product innovation and workflow automation
Regulatory/Legal & M&APending CoStar acquisition; guidance suspended Pending acquisition; expected close Q4 2024/Q1 2025 Expected to close Q1 2025; no call/guidance Progressing toward close; visibility constrained
Subscription/Recurring ModelSubscription revenue up 16% YoY; 57% of total revenue Subscription revenue up 11% YoY; ARR > $100M Record full-year subscription revenue $99.6M; ARR $104.2M Steady ARR growth and mix shift to subscriptions
Financial DisciplineNon-GAAP EPS -$0.02; operating cash improvements Near breakeven; Non-GAAP EPS -$0.01 Non-GAAP EPS -$0.02; 50% YoY improvement; record revenue Continued improvement ex-litigation
Macro/Supply ChainNot highlightedNot highlightedNot highlightedNo explicit discussion in releases

Management Commentary

  • RJ Pittman, CEO: “Total square feet digitized and managed reached… 50.7 billion, up 33% year-over-year, with annual recurring revenue… $104.2 million” and “Matterport’s 2025 Winter Release redefines what’s possible… introducing advanced automation and AI-driven capabilities… Matterport Marketing Cloud… one-click defurnish… tag management and Model Merge” .
  • JD Fay, CFO: “In the fourth-quarter, we reported total revenue… $43.8 million and non-GAAP net loss per share saw a dramatic 50% improvement from the prior year… only $0.02” and “positions Matterport for continued success” .

Q&A Highlights

  • Matterport did not host a conference call or webcast for Q4 2024 due to the pending CoStar acquisition; therefore, no Q&A was held .

Estimates Context

  • Wall Street consensus estimates via S&P Global were unavailable for MTTR due to a missing CIQ mapping, so comparisons vs estimates could not be performed this quarter (explicitly unavailable) [GetEstimates error].
  • Investors should rely on reported actuals and trend analysis until mapping is resolved and consensus can be accessed .

Key Takeaways for Investors

  • Record revenue and ARR with subscription expansion: Q4 revenue $43.818M, ARR $104.2M, subscription revenue up 14% YoY — reinforcing the recurring model’s momentum .
  • Non-GAAP profitability trajectory improving: Q4 non-GAAP EPS -$0.02 (vs -$0.04 in Q4 2023); gross profit up to $22.241M and gross margin ~50.8% — efficiency gains despite SG&A intensity .
  • Litigation noise skewed FY GAAP optics: the $95.0M charge in 2024 materially impacted GAAP losses; non-GAAP adjustments better reflect core operations .
  • Product cadence is a core catalyst: Marketing Cloud and Winter Release AI features (defurnish, Model Merge, tag management) target workflow automation and listing quality — likely sustaining subscriber and ARR growth .
  • Transaction overhang: No call and suspended guidance while awaiting CoStar close (expected Q1 2025) — near-term stock narrative hinges on deal timing and closing conditions .
  • Liquidity remains solid: year-end cash & cash equivalents $57.228M, restricted cash $96.330M, short-term investments $189.372M, supporting operational flexibility through transaction close .
  • Trading setup: Expect muted estimate-driven reactions due to unavailable consensus and lack of guidance; focus on deal progress and product adoption KPIs (ARR, subscribers, square feet under management) as catalysts .