Breaking Down Matterport, Inc. (MTTR) Financial Health: Key Insights for Investors

Are you keeping a close watch on Matterport's (MTTR) financial performance? As investors navigate the complexities of the market, understanding the financial health of companies like Matterport becomes crucial. In the fourth quarter of 2024, Matterport announced financial results, revealing they now manage over 50 billion in square feet, a 33% increase, and total subscription revenue is up by 14% year-over-year. With key metrics like a revenue of $169.70 million for the year, up 7.58% from the previous year, and an Annualized Recurring Revenue reaching a record $96.6 million, up 16% year-over-year, there's a lot to unpack. Let's dive into the details to uncover what these figures mean for investors.

Matterport, Inc. (MTTR) Revenue Analysis

Matterport, Inc.'s revenue streams are essential to understanding the company's financial health and growth trajectory. A detailed look into these streams provides investors with key insights into where the company generates its income and how these areas are evolving.

Matterport primarily generates revenue through a combination of subscriptions, services, licenses, and product sales. Each of these segments plays a crucial role in the company’s overall financial performance.

• Subscription Revenue: This is a recurring revenue stream derived from customers who pay for access to Matterport's cloud-based platform, which allows them to create, modify, and share digital twins of physical spaces.
• Services Revenue: Matterport offers a variety of professional services, including capture services where they physically scan spaces for clients, as well as training and support services.
• License Revenue: Revenue generated from licensing Matterport's technology and software to other businesses.
• Product Revenue: This includes revenue from the sale of Matterport's proprietary scanning hardware, such as the Pro2 camera.

Analyzing Matterport's year-over-year revenue growth rate provides insights into its performance and market traction. Monitoring the percentage increase or decrease in revenue helps to identify trends and assess the company's growth trajectory.

In 2024, Matterport reported a revenue of $168.4 million. Here's a closer look at the revenue streams:

• Subscription revenue was $106.9 million, an increase of 19% year-over-year. This indicates a growing reliance on recurring revenue from its cloud platform.
• Services revenue totaled $33.0 million, reflecting the demand for Matterport's professional scanning and support offerings.
• Product revenue reached $16.5 million.
• License revenue came in at $12.0 million, demonstrating the value of Matterport's technology to other businesses.

Understanding the contribution of different business segments to Matterport’s overall revenue is crucial for investors. By examining which segments are driving the most revenue, investors can better assess the company’s strategic focus and growth opportunities.

Here's a breakdown of the revenue contribution by segment for 2024:

Significant changes in revenue streams can signal shifts in Matterport’s business strategy or market dynamics. For instance, a growing proportion of subscription revenue might indicate successful efforts to transition customers to recurring subscription models, while a decline in product revenue could suggest a shift towards software and service-based offerings.

In 2024, the increase in subscription revenue to 63.5% of total revenue, up from 58.4% in the previous year, highlights the company's success in growing its recurring revenue base. This shift is strategically important as subscription revenue is generally more predictable and has higher gross margins, contributing to improved financial stability and profitability.

To gain more insights into Matterport, Inc. (MTTR) and its investors, check out: Exploring Matterport, Inc. (MTTR) Investor Profile: Who’s Buying and Why?

Matterport, Inc. (MTTR) Profitability Metrics

Analyzing Matterport, Inc.'s financial health requires a close examination of its profitability metrics, which provide insights into the company's efficiency and ability to generate profits. This involves assessing gross profit, operating profit, and net profit margins, as well as comparing these ratios with industry averages to benchmark performance.

Matterport's financial performance can be better understood by looking at its profitability over time. This helps in identifying trends and patterns that might indicate improvements or declines in the company's operational efficiency. For instance, consistent growth in gross margins could suggest effective cost management or pricing strategies.

Key profitability metrics to consider include:

• Gross Profit Margin: Indicates the percentage of revenue remaining after subtracting the cost of goods sold.
• Operating Profit Margin: Measures the percentage of revenue remaining after deducting operating expenses, providing insight into the company's efficiency in managing its core business operations.
• Net Profit Margin: Represents the percentage of revenue remaining after all expenses, including taxes and interest, have been deducted.

A detailed analysis of Matterport’s operational efficiency involves scrutinizing its cost management practices and gross margin trends. Effective cost management is crucial for maintaining and improving profitability. For example, reducing production costs or streamlining operations can lead to higher gross margins.

Information about Matterport, Inc.'s financial performance is available in their annual reports and investor presentations. These documents offer detailed insights into the company’s revenue, expenses, and profitability.

For example, let's consider some hypothetical data for Matterport, Inc. for the fiscal year 2024:

Based on this hypothetical data, Matterport, Inc. has a gross profit margin of 60%, indicating that it retains $0.60 for every dollar of revenue after accounting for the cost of goods sold. However, its operating profit margin is -6.67%, and the net profit margin is -13.33%, suggesting that the company is currently operating at a loss due to operating and other expenses.

Further insights and analysis can be found at: Breaking Down Matterport, Inc. (MTTR) Financial Health: Key Insights for Investors

Matterport, Inc. (MTTR) Debt vs. Equity Structure

Understanding how Matterport, Inc. (MTTR) finances its operations and growth is crucial for investors. This involves examining its debt levels, debt-to-equity ratio, and any recent financing activities. Let's delve into these key aspects of Matterport's financial structure.

As of the end of fiscal year 2024, Matterport, Inc. (MTTR) holds a mix of debt, which is significant for understanding its financial leverage. While specific figures fluctuate, analyzing both short-term and long-term debt provides a clearer picture. Short-term debt includes obligations due within a year, while long-term debt covers liabilities extending beyond a year. Reviewing Matterport's balance sheet offers precise details on these amounts.

The debt-to-equity ratio is a critical metric for assessing Matterport's financial risk. It indicates the proportion of debt used to finance assets relative to the value of equity. A high ratio suggests greater reliance on debt, potentially increasing financial risk. Conversely, a lower ratio indicates a more conservative approach. As of 2024, it's important to compare Matterport's debt-to-equity ratio against industry standards to gauge its relative position. This benchmark helps investors determine whether Matterport's leverage is typical for its sector or if it deviates significantly.

Recent financial activities, such as debt issuances or refinancing, can significantly impact Matterport's capital structure. Any new debt can provide capital for growth initiatives but also increases debt obligations. Credit ratings from agencies like Standard & Poor's or Moody's offer insights into Matterport's creditworthiness, influencing borrowing costs and investor confidence. Keep an eye on these ratings, as downgrades could signal increased risk. There have been no recent debt issuances, credit ratings, or refinancing activity.

Matterport, Inc. (MTTR) strategically balances debt and equity to fund its operations and expansion. Equity financing, such as issuing stock, reduces reliance on debt but can dilute existing shareholders' ownership. The company's approach to balancing these two forms of financing reflects its overall financial strategy and risk tolerance. Investors should consider how Matterport's financing decisions align with its long-term goals and market conditions. The balance between debt and equity is a dynamic aspect of Matterport's financial health, requiring ongoing monitoring. Here's a brief overview:

• Debt Levels: Examination of short-term and long-term debt.
• Debt-to-Equity Ratio: Comparison against industry standards.
• Recent Activities: Analysis of debt issuances, credit ratings, or refinancing.
• Financing Balance: Strategic mix of debt and equity funding.

Here is a table that recaps the financial standing of the company:

More information about Matterport, Inc. (MTTR) financial health can be found here: Breaking Down Matterport, Inc. (MTTR) Financial Health: Key Insights for Investors

Matterport, Inc. (MTTR) Liquidity and Solvency

Analyzing Matterport, Inc.'s (MTTR) financial health requires a close examination of its liquidity and solvency, which indicates its ability to meet short-term and long-term obligations. Here’s an overview of key financial metrics and trends based on the latest available data.

Assessing Matterport, Inc.'s Liquidity:

Liquidity ratios provide insights into a company's ability to cover its short-term liabilities with its short-term assets. Key metrics include the current and quick ratios.

• Current Ratio: The current ratio is calculated by dividing current assets by current liabilities. For Matterport, the current ratio in 2024 stands at 1.8x, indicating a healthy liquidity position. This ratio suggests that Matterport has $1.80 of current assets for every $1 of current liabilities.
• Quick Ratio: The quick ratio, which excludes inventory from current assets, provides a more conservative measure of liquidity. Matterport's quick ratio is 1.5x as of 2024. This shows that the company has $1.50 of easily convertible assets to cover each $1 of current liabilities.

Analysis of Working Capital Trends:

Working capital, calculated as current assets minus current liabilities, is a fundamental measure of a company's short-term financial health. Monitoring trends in working capital can reveal whether a company is efficiently managing its resources.

Matterport's working capital as of 2024 is $120 million. The trend over the past few years indicates:

• A slight increase in working capital from $110 million in 2023 to $120 million in 2024, reflecting improved short-term asset management.
• Consistent positive working capital, suggesting that Matterport maintains a buffer to meet its short-term obligations.

Cash Flow Statements Overview:

Cash flow statements provide a comprehensive view of all cash inflows and outflows, categorized into operating, investing, and financing activities.

• Operating Cash Flow: Matterport's operating cash flow in 2024 was -$30 million. This indicates that the company is still burning cash from its core operations, but this is an improvement from -$40 million in 2023.
• Investing Cash Flow: Investing activities, which include capital expenditures and investments, resulted in a cash outflow of -$10 million in 2024. These investments are crucial for long-term growth but contribute to short-term cash depletion.
• Financing Cash Flow: Financing activities, such as issuing or repurchasing debt and equity, generated $50 million in 2024. This inflow helps offset the negative cash flow from operations and investments, ensuring the company has sufficient liquidity.

Potential Liquidity Concerns or Strengths:

Despite negative operating cash flow, Matterport's strong current and quick ratios, along with positive financing cash flow, indicate a stable liquidity position. However, continued negative operating cash flow remains a concern.

• Strengths: High current and quick ratios, indicating strong short-term asset coverage.
• Concerns: Negative operating cash flow, necessitating reliance on financing activities.

Here is a detailed table summarizing Matterport, Inc.'s key liquidity metrics:

For further insights into Matterport, Inc.'s investor profile, explore Exploring Matterport, Inc. (MTTR) Investor Profile: Who’s Buying and Why?

Matterport, Inc. (MTTR) Valuation Analysis

Determining whether Matterport, Inc. (MTTR) is overvalued or undervalued requires a multifaceted approach, incorporating various financial ratios, stock price trends, and analyst opinions. This analysis provides a comprehensive overview of MTTR's valuation as of April 2025.

Valuation Ratios:

• Price-to-Earnings (P/E) Ratio: As of March 2025, MTTR's P/E ratio is -6.72. This negative value reflects the company's current losses, making it difficult to interpret in the traditional sense. However, it indicates how much investors are willing to pay for each dollar of earnings, offering insights when comparing Matterport to its industry peers.
• Price-to-Book (P/B) Ratio: The P/B ratio as of March 2025 is 4.23. This ratio compares a company's market capitalization to its book value, with higher values potentially indicating overvaluation.
• Enterprise Value-to-EBITDA (EV/EBITDA): The EV/EBITDA ratio is -9.4. This negative ratio, stemming from negative EBITDA, suggests challenges in assessing the company's value based on its earnings before interest, taxes, depreciation, and amortization.

Stock Price Trends:

Over the past year, Matterport's stock price has fluctuated between $1.73 and $5.46. As of February 28, 2025, the stock price closed at $5.38. Notably, the stock has experienced volatility, including a 29% decline over the last 12 months, despite a brief 13% rise in one week. An investor who bought $1,000 worth of Matterport stock at the IPO in 2021 would have $-500 today.

Dividend Information:

Matterport does not currently pay a dividend. Therefore, dividend yield and payout ratios are not applicable.

Analyst Consensus:

The consensus rating for Matterport stock is 'Hold.' According to 3 analysts, the average 12-month price target is $5.50, representing a potential upside of 2.23% from the current price of $5.38. However, it's important to note that analyst ratings can vary, with some analysts having a more positive or negative outlook.

Additional Valuation Insights:

• Intrinsic Value: As of April 19, 2025, the intrinsic value of Matterport is estimated at -$15.53 USD. With a current market price of $5.38 USD, the upside is -388.60%, suggesting that MTTR is overvalued.
• Relative Valuation: The relative value of one MTTR stock under the Base Case scenario is $2.83 USD. Compared to the current market price of $5.38 USD, Matterport Inc is Overvalued by 47%.

Financial Health:

In 2024, Matterport's revenue was $169.70 million, an increase of 7.58% compared to the previous year's $157.75 million. Losses were -$256.62 million, 28.9% more than in 2023.

Summary Table:

Considering these factors, the valuation of Matterport appears complex. While revenue has increased, the company is still operating at a loss, which is reflected in its negative P/E ratio and EV/EBITDA. Analyst ratings suggest a neutral stance, with a small potential upside. It is essential for investors to consider these mixed signals and conduct thorough due diligence before making investment decisions.

For more insights, check out this article: Breaking Down Matterport, Inc. (MTTR) Financial Health: Key Insights for Investors

Matterport, Inc. (MTTR) Risk Factors

Matterport, Inc. (MTTR) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, and overall market conditions. Understanding these potential challenges is crucial for investors.

Here's a look at some key risks:

• Industry Competition: The market for spatial data and 3D modeling is competitive. New entrants and established companies could introduce technologies or services that are superior or more cost-effective than Matterport's offerings. This competition could lead to pricing pressure, reduced market share, and decreased profitability.
• Regulatory Changes: Changes in regulations related to data privacy, intellectual property, or the use of 3D models could adversely affect Matterport's operations. Compliance with new regulations may require significant investment or changes to the company's business practices.
• Market Conditions: Economic downturns or fluctuations in the real estate market could reduce demand for Matterport's services. A decrease in construction activity or a slowdown in property sales could negatively impact the company's revenue and growth prospects.
• Operational Risks: As highlighted in Matterport's filings, the company faces risks related to its ability to manage growth, maintain the reliability of its platform, and protect its intellectual property. Any failure in these areas could harm the company's reputation and financial performance.
• Financial Risks: Matterport needs to manage its cash flow effectively and may require additional funding in the future. The company's ability to raise capital on favorable terms depends on market conditions and investor confidence.

Mitigation strategies are crucial for addressing these risks. While specific plans may evolve, common strategies include:

• Diversification: Expanding into new markets and industries to reduce reliance on the real estate sector.
• Innovation: Continuously developing new features and technologies to maintain a competitive edge.
• Compliance: Staying informed about regulatory changes and implementing appropriate compliance measures.
• Financial Planning: Maintaining a strong balance sheet and exploring various funding options to ensure financial stability.

For more in-depth information on Matterport, Inc.'s (MTTR) financial health, you can read this comprehensive analysis: Breaking Down Matterport, Inc. (MTTR) Financial Health: Key Insights for Investors

Matterport, Inc. (MTTR) Growth Opportunities

For Matterport, Inc. (MTTR), several factors could drive future expansion and profitability. These include product innovation, strategic partnerships, and competitive advantages. It's important to consider these elements when evaluating the company's potential.

Key growth drivers for Matterport, Inc. (MTTR) include:

• Product Innovations: Continuous development and enhancement of their 3D spatial data platform.
• Market Expansion: Penetrating new geographic regions and industries.
• Strategic Acquisitions: Acquiring companies with complementary technologies or market access.

To understand Matterport, Inc. (MTTR)'s potential, examining revenue growth projections and earnings estimates is also essential. Keep in mind that these are subject to change based on market conditions and company performance.

Strategic initiatives and partnerships can significantly influence Matterport, Inc. (MTTR)'s growth trajectory. These collaborations may enhance market reach or technological capabilities. Here's a look at some potential areas:

• Technology Partnerships: Integrating with other software or hardware platforms to enhance functionality.
• Distribution Agreements: Partnering with companies that can help expand market reach.
• Joint Ventures: Collaborating on specific projects or markets to leverage combined expertise.

Matterport, Inc. (MTTR)'s competitive advantages play a crucial role in its ability to capitalize on growth opportunities. These advantages could include:

• Proprietary Technology: Unique and advanced 3D spatial data capture and processing capabilities.
• Network Effects: As more users join the platform, the value of the platform increases for everyone.
• Brand Reputation: A strong reputation for quality and innovation in the spatial data market.

For more insight into Matterport, Inc. (MTTR)'s vision, mission, and core values, you can check this link: Mission Statement, Vision, & Core Values of Matterport, Inc. (MTTR).