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Spacial data company Matterport beat earnings estimates in the second quarter as demand for three dimensional listings continued to light up its subscriber base in the first half of 2023, according to an earnings call Tuesday.
Despite quarterly losses, Matterport reported second-quarter revenues of $39.6 million — a 39 percent uptick from the same period a year earlier that squeaked past analyst estimates of $39.2 million. The 3D data platform reported a loss of $12.4 million for the year, representing an improvement of 62 percent year over year.
“The second quarter execution was pivotal for the company this year,” Matterport CEO RJ Pittman said in a statement. “We delivered record subscription and services revenue while doubling-down on our efficiency initiatives to deliver step function productivity gains in the second half of 2023. Our strategic partnerships continue to drive pipeline, connect us to large industry ecosystems, open new technology distribution channels and critically enhance our platform’s functionality for customers.”
Matterport brought in subscription revenue of $20.9 million, a 13 percent increase from the previous year as its subscriber count rose to 827,000, up 34 percent from the previous year.
The number of spaces managed by Matterport, or spaces that have been scanned and filed into their system, also increased 31 percent year over year to 10.5 million, according to the report.
Matterport is known in the real estate industry for software that creates photorealistic, immersive renditions of any sort of property, or in industry parlance, “built environments.” This technology made it a pandemic darling in 2020, when the safety of in-person tours was unclear.
Its sophisticated cameras and interfaces do more than offer fun ways for agents to market homes. The use of so-called “digital twins” has expanded quickly into the larger commercial contexts of space planning, architecture, retail layout and merchandising, insurance oversight and facilities management, among other uses.
The second quarter saw Matterport announce Genesis, a new technology that will enable users to insert, move, edit and redesign interiors within created spaces, which will likely appeal to interior designers, staging professionals, aspiring home buyers and listing agents, among others.
It also underwent a round of layoffs, eliminating 170 positions in what it said was an attempt to optimize its global workforce and improve operating efficiency.
“Our continued growth in total and subscription revenue as well as commitment to streamlining operations have propelled us to another quarter of exceptional bottom-line outperformance, delivering Non-GAAP loss per share toward the top end of guidance,” JD Fay, Chief Financial Officer of Matterport said in a statement. “Looking forward, our recent restructuring aims to fast-track our path to operational cash flow profitability to 2024, a full year ahead of our previous plan. These difficult and decisive steps reflect our dedication to constructing a sustainable business emphasizing long-term growth and profitability.”
For the third quarter, the company predicted revenues of between $38 and $40 million, and subscription revenue of between $21.8 and $22 million.
