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Matterport reported earning $158 million last year as it continued its pursuit to become the industry leader in creating digital replicas of homes, buildings and more, the company reported on Tuesday.
That was up 16 percent compared to 2022. Still, it wasn’t enough to offset the $65.8 million the company lost for the year as it remained focused on its rapid expansion, according to Matterport’s fourth quarter earnings report.
The company recently rolled out new products in the coming weeks that CEO RJ Pittman said would give real estate agents and other customers the edge in marketing properties for sale or rent.
“Agents are under increased pressure to meet the high expectations of their clients and secure new listings,” Pittman said on a call with investors Tuesday to discuss the company’s performance.
Pittman referenced the numerous lawsuits and other legal threats that pose potential challenges to real estate agents in the future as he tried to show his company’s ability to let agents work faster and deliver more value to clients.
“Our digital listings serve as comprehensive marketing tools,” Pittman said, adding that Matterport’s features allow agents to attract customers, expedite transactions and increase rental bookings.
Like numerous other companies in real estate, Matterport intends to lean into new capabilities of artificial intelligence with upcoming feature releases, Pittman said. Specifically, he cited upcoming generative AI features that would help customers “reimagine” properties, referring to an ability to take a Matterport “digital twin” and de-furnish a space, remove items and clear clutter.
Last week, the company unveiled new branding opportunities for real estate agents, in addition to new features that allow customers to collect and present even more data — like ceiling heights.
Matterport spent 2023 focused on increasing its revenue from subscriptions, which represent an ongoing and reliable source of revenue for the company. Matterport now relies on customer subscriptions for 60 percent of its revenue.
Matterport now has 938,000 subscribers, including construction companies and major companies that can trim costs and logistics issues by using Matterport technologies to manage facilities and projects. Matterport now works with 1 out of 4 Fortune 1000 companies, the company said Tuesday.
The company is focused on becoming profitable; CFO JD Fay said the company hopes to become profitable this year.
Heading into 2023, Matterport said it expected to earn as much as $169 million in total revenue for the year. It later lowered that expectation by 6 percent, telling investors in November they should expect the company to earn as much as $159 million total for the year.
Matterport creates what it calls “digital twins” of built environments. It grew rapidly through the pandemic when buyers quickly shifted to online shopping. Matterport technology allowed listings to showcase three-dimensional tours of homes.
Matterport now boasts management of 38 billion square feet of buildings and spaces, having created 11.7 million digital twins. The company said that’s 100 times more than its competitors.
The company beat its own expectations for its ability to grow revenue from subscriptions in the fourth quarter. It had expected to pull in as much as $23.3 million from subscriptions in the quarter. Instead, it earned $23.6 million, indicating its subscription revenue was accelerating.
Matterport also earns revenue by selling the advanced cameras that create the digital twins, and its earnings report showed that segment slowed 44 percent in the fourth quarter compared to the fourth quarter of 2022. The company had been on pace to increase its product revenue heading into the fourth quarter when sales slowed.
The company’s service revenue grew 38 percent for the year.
In the first quarter of this year, the company said it expects to earn up to $24.2 million from subscriptions as the company keeps its eye on expanding.
The company said it expects to grow total revenue 19 percent to 22 percent this year.
Editor’s note — This story was updated to include more context about recent feature updates.
