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Matterport saw its revenues shift away from residential real estate in 2022 as the housing market and economy cooled, sales slowed and the U.S. braced for a possible recession.
The company, which provides technology services and products including cameras that record and digitize homes, buildings and outdoor spaces, reported earning $136.1 million in 2022 as it focused on gaining market share.
That wasn’t enough to offset $26.5 million in losses for the final three months of 2022 and $116.6 million for the year, according to the company’s latest earnings release on Wednesday. That was more than double the $46.9 million in losses Matterport reported in 2021.
The company didn’t provide a timeline for when it hopes to return to profitability. But it said it would keep its costs down, keep its headcount relatively flat and find more ways to add more customers, particularly in real estate.
The shift was likely driven by a decline in home listings. Matterport services include creating two-dimensional floorplans, three-dimensional virtual tours and marketing videos for real estate agents.
Still, the company focused on its higher-than-ever revenues from services it offers to real estate professionals and businesses across the globe, such as buildings that can use Matterport technology, as well as products and subscriptions, which all grew during the quarter.
Matterport CEO RJ Pittman said that was driven by a need for global companies to drive productivity and efficiency by collecting and analyzing data about their buildings.
“For the full year 2022 we delivered record total revenue,” said Pittman. “We see the current economic environment driving more customers.”
With fewer homes for sale, the so-called “enterprise” side of Matterport’s revenue grew from roughly one-third of revenue to roughly half in 2022. Matterport announced last month that it would provide its so-called “digital twins” for all John Deere buildings worldwide.
“This has been a huge boost…for customers that are looking to cut costs out of their organization but that still have dependencies on their footprint as part of their core business,” Pittman said. “We’re now positioned as a productivity-driver and a cost-saver.”
Company leaders said they weren’t moving on from residential real estate, but rather growing overall market share in what they said will be a $150 billion opportunity by 2030.
“While the real estate market might be soft, there are still houses that are sitting out there looking for buyers,” Pittman said. But Matterport can give buyers “enough information to make a purchase decision even without having to set foot inside a property.”
The company is focusing on creating new low-cost and easy ways for agents and other customers to use its products for the first time, Pittman said Wednesday.
And while revenue shifted from residential real estate toward new business, it continued to grow across all of Matterport’s revenue-generators. Revenue for subscriptions was up 17 percent compared to a year earlier, growing from $16.5 million to $19.3 million in the quarter. Matterport expects subscription revenue to remain flat or grow slightly to $19.5 million when it tallies the first three months of the year.
The company’s revenue from selling products like its Pro3 camera more than doubled, growing from $6.6 million in the last three months of 2021 to $13.6 million in 2022. Revenue from services grew 122 percent at $8.2 million, the company said.
The $41.1 million was ahead of the company’s expectations that it shared in November when it said it expected to generate between $39 million and $41 million in the quarter. The company reported earning $136 million in the year and expects to grow that to between $153 million and $169 million in 2023.
“There is enormous growth that lies ahead,” Pittman said. “Residential real estate still represents the vast majority of the properties that make up the built world today. So it’s always going to be a large market opportunity for us.”
