Matterport (MTTR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $43.8 million, up 8% year-over-year, driven by subscription and services growth, with annualized recurring revenue surpassing $100 million.

• Net loss for Q3 2024 was $38.4 million, a 14% improvement year-over-year; non-GAAP net loss improved 80% year-over-year.

• Subscriber base grew to 1.1 million, up 25% year-over-year; spaces under management reached 13.6 million.

• Launched Fall 2024 Release with AI-powered tools for digital twin applications, enhancing workflow efficiency.

• Pending acquisition by CoStar Group expected to close in Q4 2024 or Q1 2025, subject to regulatory approvals.

Financial highlights

• Q3 2024 revenue: $43.8 million (up 8% year-over-year); subscription revenue: $25.4 million (up 11%); services revenue: $11.1 million (up 12%).

• Gross profit for Q3: $21.7 million; gross margin: 50%.

• Operating expenses for Q3: $65.7 million, including a $95 million litigation charge in the nine-month period.

• Non-GAAP loss from operations for Q3: $7.9 million; non-GAAP net loss for Q3: $2.4 million.

• Cash used in operating activities for nine months: $18.6 million, a 61% improvement year-over-year.

Outlook and guidance

• No financial guidance for Q4 2024 or full year due to pending CoStar Group acquisition.

• If completed, shares will convert to $2.75 cash plus CoStar stock; if not, company remains public and faces ongoing risks.