SUNNYVALE, Calif., Feb. 08, 2024 (GLOBE NEWSWIRE) -- Matterport, Inc. (NASDAQ:MTTR), the leading digital twin platform to access, understand, and utilize properties, announced an agreement with Visiting Media, a global leader in immersive sales enablement and channel distribution solutions for the hospitality sector. Visiting Media serves tens of millions of users around the globe, supporting the world's largest hospitality brands including Hilton, Hyatt, IHG Hotels and Resorts and more. With this new agree ...

SUNNYVALE, Calif., Feb. 01, 2024 (GLOBE NEWSWIRE) -- Matterport, Inc. (NASDAQ:MTTR), the leading digital twin platform to access, understand and utilize properties, announced a partnership with Arcadus, a leading reseller of digital transformation products and services for the public sector, to offer the Matterport Digital Twin Platform to its customers in the United States. Arcadus is a leading value-added reseller of 3D, spatial data and related digital twin services, helping organizations advance their o ...

SUNNYVALE, Calif, Jan. 25, 2024 (GLOBE NEWSWIRE) -- Matterport, Inc. (NASDAQ:MTTR) partner, VRPM, a leading visualization and virtual staging platform, demonstrated how Matterport's Digital Twin Platform is being applied to virtual staging for interior design in the commercial real estate sector. VRPM is one of the leading virtual staging platforms in the UK, which with Matterport's technology has scanned over 15,000 properties. As the impact of the COVID-19 pandemic reshaped the business landscape, VRPM ex ...

SUNNYVALE, Calif., Jan. 16, 2024 (GLOBE NEWSWIRE) -- Matterport, Inc. (NASDAQ:MTTR), announced new high density scanning capabilities for Matterport's revolutionary 3D camera, Pro3. Available now in beta, high density scanning makes as-built modeling with Matterport even easier, helping streamline workflows, minimize errors, and accelerate project timelines. This continues to widen Matterport's lead as the best price for performance solution for outstanding imagery and high fidelity digital twin reconstruct ...

SUNNYVALE, Calif., Jan. 09, 2024 (GLOBE NEWSWIRE) -- Matterport, Inc. (NASDAQ:MTTR), announced that The Ivy Collection, one of the UK's leading restaurant brands, selected Matterport's 3D Property Marketing solution to help customers experience its private dining spaces virtually, to streamline event planning, and maximize customer satisfaction. The Ivy Collection offers exclusive private dining experiences across London, the UK and Ireland, featuring a range of elegant rooms capable of accommodating intima ...

SUNNYVALE, Calif., Dec. 27, 2023 (GLOBE NEWSWIRE) -- Matterport, Inc. (NASDAQ:MTTR) is a proud sponsor and panel judge of the 2023 Digital Twins Awards (DTAs), powered by Matterport partner CAPTUR3D, celebrating the innovation thriving within the global Matterport community. Now in its third year, individuals and organizations from diverse industries will have an opportunity to showcase their creativity by submitting their most interesting digital twins that were created in 2023. Matterport digital twins ha ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________ FORM 10-Q ____________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number 001-39790 ________________ ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2023 grew to nearly $40 million, reflecting a 39% year-over-year increase, reaching the high end of guidance [26] - Subscription revenue rose to $20.9 million, up 13% from the previous year, also at the high end of guidance [26] - Non-GAAP net loss for Q2 was $21.5 million, with a loss per share of $0.07, marking a 42% improvement from the year-ago quarter [41] Business Line Data and Key Metrics Changes - Subscription and services revenue both achieved new records in Q2, with subscription revenue contributing significantly to total revenue growth [26][37] - Services revenue reached $10.7 million, more than double the year-ago period, driven by capture services and add-on services [37] - Product revenue was $8 million, up 58% from the previous year, primarily due to demand for the new Pro3 camera [37] Market Data and Key Metrics Changes - The U.S. residential real estate market saw an 18% decline in existing home sales volume in Q2, yet Matterport added nearly 660,000 new digital twins, mostly related to residential real estate [18][20] - Approximately 50% of subscription revenues came from non-real estate customers, with strong growth in construction, travel, hospitality, facilities management, and insurance [27] Company Strategy and Development Direction - The company is focusing on AI-driven technologies and has introduced initiatives like Genesis to enhance its digital twin platform [7][79] - Strategic partnerships with major software providers like AWS and Autodesk are expanding Matterport's market presence and driving revenue growth [14][85] - A restructuring initiative aims to accelerate the path to profitability, with expectations to achieve operating cash flow breakeven by 2024 [31][80] Management's Comments on Operating Environment and Future Outlook - Management noted that the digital transformation of the built world is ongoing, with Matterport positioned to deliver cost savings and operational efficiency [43] - The company anticipates a 17% increase in U.S. existing home sales volume next year if inflation and interest rates improve, positioning itself for growth [25] - Management expressed confidence in the company's ability to drive growth despite challenges in the residential real estate market [62] Other Important Information - The company ended Q2 with $446 million in cash and investments, remaining debt-free [42] - Annual recurring revenue grew to $83.5 million, with a subscriber base of 827,000, including 69,000 paid subscribers [36] Q&A Session Summary Question: Customer reception to pricing changes - Management reported positive feedback on pricing changes, with retention rates better than expected and an increase in customers converting to annual plans [64][65] Question: Impact of the U.S. residential market on revenue - Management acknowledged the influence of the U.S. residential real estate market on services and product revenue, reflecting modest adjustments in guidance [95] Question: Long-term monetization of proprietary data - Management discussed plans to unlock the value of proprietary data through new products like Property Intelligence and the Genesis initiative, which will enhance the digital twin platform [82][83]

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements for Q2 2023 and 2022, covering balance sheets, statements of operations, and cash flows Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $82,316 | $117,128 | | Short-term investments | $363,295 | $355,815 | | Total current assets | $483,694 | $517,932 | | Total assets | $604,728 | $640,395 | | **Liabilities & Equity** | | | | Total current liabilities | $49,835 | $48,978 | | Total liabilities | $53,226 | $56,484 | | Total stockholders' equity | $551,502 | $583,911 | Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $39,567 | $28,481 | $77,561 | $56,991 | | Gross profit | $15,963 | $11,713 | $32,375 | $23,622 | | Loss from operations | $(58,906) | $(69,190) | $(115,700) | $(154,132) | | Net income (loss) | $(56,536) | $(64,634) | $(110,378) | $7,270 | | Diluted EPS | $(0.19) | $(0.23) | $(0.37) | $0.02 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(32,839) | $(58,278) | | Net cash provided by (used in) investing activities | $(4,027) | $34,155 | | Net cash provided by (used in) financing activities | $1,866 | $(1,612) | | Net change in cash | $(35,000) | $(25,735) | - Subsequent to the quarter end, on July 11, 2023, the company announced a restructuring plan to reduce operating costs, including a reduction of approximately **170 roles (30% of its workforce)**, with expected charges of **$4.0 to $5.0 million** primarily in Q3 and Q4 of 2023[114](index=114&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q2 and H1 2023 financial performance, highlighting a 39% revenue increase, key business metrics, cost structures, and a recent restructuring plan to accelerate profitability - The company is leading the digitization of the built world, with an estimated total addressable market of over **$240 billion**, comprising more than **four billion buildings** globally, and approximately **10.5 million spaces** under management as of June 30, 2023[117](index=117&type=chunk)[119](index=119&type=chunk) Key Business Metrics | Metric | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Spaces under management (millions) | 10.5 | 8.0 | | Total subscribers (thousands) | 827 | 616 | | - Paid subscribers (thousands) | 69 | 62 | | - Free subscribers (thousands) | 758 | 554 | - The Net Dollar Expansion Rate was **100%** for the three months ended June 30, 2023, down from **107%** in the same period of 2022, reflecting spending caution from smaller customers in U.S. residential real estate due to the macroeconomic environment[144](index=144&type=chunk)[153](index=153&type=chunk) - On July 11, 2023, the company announced a restructuring plan involving a **30% workforce reduction** (approximately **170 roles**) to reduce operating costs and accelerate its path to profitability, with expected charges of **$4.0 to $5.0 million**[123](index=123&type=chunk) [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Total revenue increased 39% year-over-year to $39.6 million for Q2 2023, driven by growth in Services, Product, and Subscription revenue, leading to a reduced operating loss Revenue by Type (in thousands) | Revenue Type | Q2 2023 | Q2 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Subscription | $20,868 | $18,386 | 13% | | Services | $10,684 | $5,013 | 113% | | Product | $7,988 | $5,056 | 58% | | **Total Revenue** | **$39,567** | **$28,481** | **39%** | - The **113% increase** in Services revenue was primarily driven by the acquisition of VHT Studios, which contributed **$4.3 million** in the quarter, while the **58% increase** in Product revenue was mainly due to higher demand for the Pro3 Camera, launched in August 2022[189](index=189&type=chunk)[190](index=190&type=chunk) - Research and Development expenses decreased by **12% YoY** for the quarter, reflecting a strategic reallocation of spending, and Selling, General, and Administrative expenses decreased by **6% YoY**, primarily due to a **$3.1 million** reduction in marketing programs[198](index=198&type=chunk)[199](index=199&type=chunk) [Non-GAAP Financial Measures](index=46&type=section&id=Non-GAAP%20Financial%20Measures) The company provides non-GAAP financial measures, showing an improved non-GAAP loss from operations of $24.0 million for Q2 2023 and reduced free cash flow outflow for H1 2023 Reconciliation of GAAP to Non-GAAP Loss from Operations (in thousands) | | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | GAAP loss from operations | $(58,906) | $(69,190) | | Stock based compensation expense, net | $34,449 | $32,889 | | Acquisition-related costs | $0 | $900 | | Amortization of acquired intangible assets | $443 | $265 | | **Non-GAAP loss from operations** | **$(24,014)** | **$(35,136)** | Free Cash Flow Calculation (in thousands) | | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(32,839) | $(58,278) | | Less: purchases of property and equipment | $101 | $866 | | Less: capitalized software and development costs | $5,248 | $7,086 | | **Free cash flow** | **$(38,188)** | **$(66,230)** | [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2023, the company had $445.6 million in cash, cash equivalents, and investments, deemed sufficient to fund operations for at least the next twelve months - The company's total cash, cash equivalents, and investments stood at **$445.6 million** as of June 30, 2023, down from **$476.9 million** at the end of 2022[211](index=211&type=chunk)[212](index=212&type=chunk) - Management believes that current financial resources are sufficient to continue operating activities for at least one year past the issuance date of the financial statements[213](index=213&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's exposure to market risks, primarily foreign currency exchange and inflation, noting no material impact to date - The company's primary market risks are foreign currency exchange risk and inflation risk[227](index=227&type=chunk) - Revenue is primarily generated in U.S. dollars, while expenses are denominated in various currencies; a hypothetical **10% change** in foreign currency exchange rates would not have a material impact on the financial statements as of June 30, 2023[228](index=228&type=chunk) - The company does not believe that inflation has had a material effect on its business, financial condition, or results of operations[229](index=229&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that as of June 30, 2023, the company's disclosure controls and procedures were effective at the reasonable assurance level[231](index=231&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[232](index=232&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) The company discloses ongoing legal matters, including a former employee lawsuit, patent infringement litigation, and a 2021 SEC information request regarding securities sales - The company is in ongoing litigation with former employee William J. Brown regarding stock transfer restrictions and alleged fiduciary duty violations, with a trial scheduled for **November 13, 2023**[237](index=237&type=chunk) - The company is indemnifying Redfin in a patent infringement lawsuit brought by Surefield, where a jury found non-infringement and invalid patents in **May 2022**, with post-trial motions pending[239](index=239&type=chunk)[240](index=240&type=chunk) - In **January 2021**, the company received a voluntary request for information from the SEC's Division of Enforcement regarding certain sales and repurchases of its securities, to which it has complied and has not received any updates on the investigation's status[241](index=241&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, emphasizing the potential negative impact of adverse macroeconomic conditions, including inflation, recession, and global banking system turmoil - The company's business may be negatively affected by adverse macroeconomic conditions, including inflation, slower growth or recession, tighter credit, and higher interest rates, which can impact consumer and business spending[244](index=244&type=chunk)[245](index=245&type=chunk) - Turmoil in the global banking system, exemplified by the **March 2023** closure of Silicon Valley Bank (SVB), a banking partner, poses a potential risk to the business and the financial condition of its customers and suppliers[247](index=247&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period [Other Information](index=55&type=section&id=Item%205.%20Other%20Information) No director or Section 16 officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 30, 2023 [Exhibits](index=55&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer, and XBRL data files

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________ FORM 10-Q ____________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number 001-39790 ____________________ ...