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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Matterport Announces Third Quarter 2021 Financial Results

November 3, 2021 GMT

  • Total subscribers increased 116% to 439,000 from year-ago period
  • Paid subscribers rose 35% to 53,000 from year-ago period
  • Subscription revenue grew 36% to $16 million from year-ago period
  • Annual recurring revenue grew to $63 million
  • GAAP loss per share of $0.86, Non-GAAP loss per share of $0.06

SUNNYVALE, Calif., Nov. 03, 2021 (GLOBE NEWSWIRE) -- Matterport, Inc. (Nasdaq: MTTR), (“Matterport” or the “Company”), the spatial data company leading the digital transformation of the built world, today announced financial results for the quarter ended September 30, 2021.

“We are pleased to report another strong quarter, more than doubling our subscriber count to 439,000 subscribers, and increasing our Spaces Under Management by 62% to 6.2 million Spaces,” said RJ Pittman, Chairman and Chief Executive Officer of Matterport. “We made significant advances in all of our objectives, including strategic product launches, key industry partnerships, expanded service offerings, and the scaling of our global workforce to address the huge opportunity ahead. We have also been navigating the dynamics of the global supply chain and labor markets to minimize the impact on our hardware and services business. Our recent launch of Matterport for Android is very timely, and dramatically expands our reach for digitizing spaces using just the phone in your pocket, while giving us an important advantage to our global growth plans for Asia Pacific, Europe, the Middle East and Africa.”

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“We are also pleased to report that we increased our subscription revenue by 36%, contributing to another quarter of year-over-year double digit growth,” said JD Fay, Chief Financial Officer of Matterport. “The third quarter was a transformational one for Matterport as we closed our merger with Gores Holdings, VI to become a public company. We added over $600 million to our balance sheet to fuel the long-term growth of the business worldwide.”

Third Quarter 2021 Financial Highlights:

  • Total revenue was $27.7 million, up 10% compared to third quarter of 2020
  • Subscription revenue of $15.7 million, up 36% compared to third quarter of 2020
  • Annual Recurring Revenue (ARR) of $62.7 million
  • Spaces Under Management (SUM) grew to 6.2 million, up 62% compared to third quarter of 2020
  • Total subscribers increased to 439,000, up 116% compared to third quarter of 2020
  • GAAP loss per share of $0.86, Non-GAAP loss per share of $0.06

Recent Business Highlights:

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  • Announced Matterport for Android, making 3D capture freely available to more than one billion Android mobile devices
  • Announced the open beta launch of Notes, a conversational, real-time team collaboration, communication and file sharing tool directly inside Matterport digital twins
  • Entered the public sector with an agreement to develop a compliant Government Cloud (GovCloud) offering a strategic partnership with In-Q-Tel, Inc.
  • Became a public company and raised $640 million in gross proceeds by successfully completing a merger with Gores Holdings VI, Inc.
  • Announced industry partnerships with Verisk, PTC, Apex, SIMLAB, and Facebook (now known as Meta)
    • New integration between Matterport and Verisk’s Xactimate allows property professionals to order a TruePlan of a Matterport 3D Space with a single click, eliminating the need for property professionals to manually sketch loss sites
    • Platform integration with the PTC Vuforia Engine™ and Vuforia Studio™ augmented reality (AR) software offerings, enables customers to view a precise location of an immersive 3D environment and access experiences such as wayfinding, virtual training, real-time information retrieval, and more
    • Partnership with Apex enables retail brands across the North America to access, collect and evaluate building data and information from all of their stores in a single location
    • Strategic partnership and investment in SIMLAB, a technology company that specializes in the digitization of buildings throughout the design and construction phases
    • Partnership with Meta AI Research for advancing research and development of AI systems for the physical and virtual world, which has been adopted by over 180 academic institutions to date
  • Continued expansion of Capture Services™ On-Demand to a total of 80 cities in the United States from 12 in Q2 and launched internationally with four cities in the United Kingdom
  • Strengthened executive team
    • Pranab Sinha, Chief Information Officer
    • Jon Maron, Vice President of Growth
    • Seth Finkel, Vice President of Public Sector
    • Preethy Vaidyanathan, Head of Product

Non-GAAP Financial Information

Matterport has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). We believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations.

The presentation of these non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. For further information regarding these non-GAAP measures, including the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the financial tables below.

Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) Per Share, Basic and Diluted. Matterport defines non-GAAP net income (loss) as net income (loss), adjusted to exclude stock-based compensation expense, fair value change of warrants liabilities, fair value change of earn-out liabilities, and transaction costs associated with the recently completed merger, in order to provide investors and management with greater visibility to the underlying performance of Matterport’s recurring core business operations. In order to calculate non-GAAP net income (loss) per share, basic and diluted, Matterport uses a non-GAAP weighted-average share count. Matterport defines non-GAAP weighted-average shares used to compute non-GAAP net income (loss) per share, basic and diluted, as GAAP weighted average shares used to compute net income (loss) per share attributable to common stockholders, basic and diluted, adjusted to reflect the shares of Matterport’s Class A common stock exchanged for the previously issued and outstanding shares of redeemable convertible preferred stock and common stock warrants of Matterport, Inc, (now known as Matterport Operating, LLC) in connection with the recently completed merger, that are outstanding as of the end of the period as if they were outstanding as of the beginning of the period for comparability, and the diluted effect of the company’s employee equity incentive plan awards.

Conference Call Information

Matterport will host a conference call for analysts and investors to discuss its financial results for the third quarter of fiscal 2021 today at 2:00 p.m. Pacific time (5:00 p.m. Eastern time). A recorded webcast of the event will also be available following the call for one year on the Matterport’s Investor Relations website at investors.matterport.com.

Date:November 3, 2021
Time:1:30 p.m. Pacific time (4:30 p.m. Eastern time)
Webcast:investors.matterport.com

About Matterport

Matterport, Inc. (Nasdaq: MTTR) is leading the digital transformation of the built world. Our groundbreaking spatial computing platform turns buildings into data making every space more valuable and accessible. Millions of buildings in more than 150 countries have been transformed into immersive Matterport digital twins to improve every part of the building lifecycle from planning, construction, and operations to documentation, appraisal and marketing. Learn more at matterport.com and browse a gallery of digital twins.

©2021 Matterport, Inc. All rights reserved. Matterport is a registered trademark and the Matterport logo is a trademark of Matterport, Inc. All other marks are the property of their respective owners.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the benefits of Matterport’s recently completed merger, the services offered by Matterport, and the benefits of recent business collaborations and partnerships entered into by Matterport. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “forecast,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions (including the negative versions of such words or expressions).

Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including Matterport’s ability to implement business plans, forecasts, and other expectations in the industry in which Matterport competes, and identify and realize additional opportunities. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in documents filed by Matterport from time to time with the U.S. Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Matterport assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Matterport does not give any assurance that it will achieve its expectations.

Media Contact:
Linda McNair
Senior Director, Communications
press@matterport.com  
408.675.8427

Investor Contact:
Soohwan Kim, CFA
VP, Investor Relations
ir@matterport.com  

 
MATTERPORT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
     
   Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2021 2020 2021 2020
Revenue:        
Subscription $15,677  $11,517  $44,758  $29,032 
License 118  3,000  4,477  3,000 
Services 3,292  2,341  8,860  5,498 
Product 8,568  8,216  25,992  24,767 
Total revenue 27,655  25,074  84,087  62,297 
Costs of revenue:        
Subscription 3,908  2,981  10,543  8,299 
License   69    69 
Services 2,460  1,730  6,785  4,270 
Product 7,106  5,228  18,036  15,198 
Total costs of revenue 13,474  10,008  35,364  27,836 
Gross profit 14,181  15,066  48,723  34,461 
Operating expenses:        
Research and development 14,484  3,861  27,599  13,003 
Selling, general, and administrative 44,053  9,942  73,612  30,215 
Total operating expenses 58,537  13,803  101,211  43,218 
Income (loss) from operations (44,356) 1,263  (52,488) (8,757)
Other income (expense):        
Interest income 550  3  572  16 
Interest expense (91) (339) (676) (1,197)
Transaction costs (565)   (565)  
Change in fair value of warrants liabilities (24,176)   (24,176)  
Change in fair value of contingent earn-out liability (98,478)   (98,478)  
Other expense, net (839) (4) (1,186) (903)
Total expense (123,599) (340) (124,509) (2,084)
Income (loss) before provision for income taxes (167,955) 923  (176,997) (10,841)
Provision for income taxes 34  17  73  51 
Net income (loss) $(167,989) $906  $(177,070) $(10,892)
Less: Income allocated to preferred stockholders   (906)    
Net income (loss) attributable to common stockholders $(167,989) $  $(177,070) $(10,892)
Net income (loss) per share, basic and diluted $(0.86) $  $(1.90) $(0.34)
Weighted-average shares used in per share calculation, basic and diluted 196,478  32,552  93,061  32,334 
MATTERPORT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 
 September 30, December 31,
 2021 2020
ASSETS   
Current assets:   
Cash and cash equivalents$148,853  $51,850 
Restricted cash468  400 
Short-term investments174,168   
Accounts receivable, net9,572  3,924 
Inventories3,989  3,646 
Prepaid expenses and other current assets11,395  2,453 
Total current assets348,445  62,273 
Property and equipment, net11,377  8,210 
Long-term investments290,900   
Other assets2,716  1,369 
Total assets$653,438  $71,852 
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND
STOCKHOLDERS’ EQUITY (DEFICIT)
   
Current liabilities   
Accounts payable$6,848  $3,434 
Current portion of long-term debt  8,215 
Deferred revenue8,903  4,606 
Accrued expenses and other current liabilities8,781  6,995 
Total current liabilities24,532  23,250 
Public warrants liability53,682   
Private warrants liability34,621   
Contingent earn-out liability334,389   
Long-term debt  4,502 
Deferred revenue, non-current210  297 
Other long-term liabilities278  335 
Total liabilities447,712  28,384 
Commitments and contingencies   
Redeemable convertible preferred stock  164,168 
Stockholders’ equity (deficit):   
Common stock24  4 
Additional paid-in capital512,808  9,159 
Accumulated other comprehensive income (loss)(38) 135 
Accumulated deficit(307,068) (129,998)
Total stockholders’ equity (deficit)205,726  (120,700)
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)$653,438  $71,852 
MATTERPORT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
 
  Nine Months Ended
September 30,
 2021 2020
CASH FLOWS FROM OPERATING ACTIVITIES   
Net Loss$(177,070) $(10,892)
Adjustments to reconcile net loss to net cash used in operating activities:   
Depreciation and amortization4,121  3,538 
Amortization of debt discount135  172 
Amortization of investment premiums, net of accretion of discounts413   
Stock-based compensation, net of amounts capitalized31,997  1,794 
Change in fair value of warrants liabilities24,176   
Change in fair value of contingent earn-out liability98,478   
Transaction costs565   
Loss on extinguishment of debt and convertible notes210  954 
Allowance for doubtful accounts460  581 
Other193  10 
Changes in operating assets and liabilities:   
Accounts receivable(6,100) (7,097)
Inventories(342) (2,260)
Prepaid expenses and other assets(7,699) (965)
Accounts payable3,427  1,692 
Deferred revenue4,503  2,817 
Accrued expenses and other liabilities1,442  2,516 
    Net cash used in operating activities(21,091) (7,140)
CASH FLOWS FROM INVESTING ACTIVITIES:   
Purchases of property and equipment(536) (20)
Capitalized software and development costs(5,233) (3,624)
Purchase of investments(466,466)  
Investment in convertible notes(1,000)  
    Net cash used in investing activities(473,235) (3,644)
CASH FLOW FROM FINANCING ACTIVITIES:   
Proceeds from reverse recapitalization and PIPE financing, net612,854   
Payment of transaction costs related to reverse recapitalization(9,813)  
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs  43,689 
Proceeds from exercise of stock options1,696  189 
Proceeds from debt, net  5,221 
Proceeds from convertible notes, net of issuance costs  8,457 
Repayment of debt(13,067) (6,974)
Settlement of vested stock options  (554)
Repurchase of common stock  (438)
    Net cash provided by financing activities591,670  49,590 
Net change in cash, cash equivalents, and restricted cash97,344  38,806 
Effect of exchange rate changes on cash(273) (22)
Cash, cash equivalents, and restricted cash at beginning of year52,250  10,152 
Cash, cash equivalents, and restricted cash at end of period$149,321  $48,936 
MATTERPORT, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
(unaudited)
 
   Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2021 2020 2021 2020
GAAP net income/(loss) $(167,989) $906  $(177,070) $(10,892)
Stock-based compensation expense (1) 30,738  630  31,997  1,794 
Change in fair value of warrants liabilities (2) 24,176    24,176   
Transaction costs (3) 565    565   
Change in fair value of contingent earn-out liability (4) 98,478    98,478   
Non-GAAP net income/(loss) (14,032) 1,536  (21,854) (9,098)
         
Less: Noncumulative dividend on redeemable convertible preferred stock   (906)    
GAAP net income (loss) attributable to common stockholders (167,989)   (177,070) (10,892)
Non-GAAP net income (loss) attributable to common stockholders (14,032) 1,536  (21,854) (9,098)
         
GAAP net income (loss) per share attributable to common stockholders, basic and diluted $(0.86) $  $(1.90) $(0.34)
Non-GAAP net income (loss) per share attributable to common stockholders, basic and diluted $(0.06) $0.01  $(0.12) $(0.06)
         
GAAP weighted-average shares used to compute net income (loss) per share, basic and diluted 196,478  32,552  93,061  32,334 
Adjustment for common stocks issued in connection with the merger (5) 29,750  127,499  94,340  127,499 
Non-GAAP weighted-average shares used to compute net income (loss) per share, basic 226,228  160,051  187,401  159,833 
Weighted-average effect of potentially dilutive securities (6)   45,392     
Non-GAAP weighted-average shares used to compute net income (loss) per share, diluted 226,228  205,443  187,401  159,833 

(1) Consists primarily of non-cash share-based compensation related to the Company’s stock incentive plans and earn-out arrangement

(2) Consists of the loss related non-cash fair value measurement change for public and private warrants

(3) Consists of the transaction costs associated with warrants instrument issuance

(4) Represents the non-cash fair-value measurement change related to our earn-out liability

(5) Consists non-GAAP adjustment of unweighted average common stock issued and converted from Matterport, Inc.’s (now known as Matterport Operating, LLC) previously issued and outstanding shares of convertible preferred stock and common stock warrants prior to the completion of the merger

(6) Includes the potentially dilutive effect of employee equity incentive plan awards.