Matterport Reports Bigger Than Expected Fourth Quarter Loss; Stocks drop before market

Matterport, Inc. (NASDAQ: MTTR), the spatial data company, reported a bigger-than-expected loss for the fourth quarter of 2021 and a disappointing forecast.

Following the results, shares of the company lost more than 14% in premarket trading after closing down 5.6% on Wednesday.

Results in detail

Matterport suffered an adjusted loss of $0.10 per share, higher than Street’s loss estimate of $0.09 per share. The company reported a loss of $0.01 per share in the same quarter last year.

Meanwhile, total revenue generated in the quarter increased 15% year-over-year to $27.1 million, beating the consensus estimate of $25.13 million. Markedly, the total number of subscribers jumped 98% to 503,000 from the year-ago quarter.

By segment, subscription revenue was $16.5 million, up 32% year-over-year, while service revenue increased 68% to $3.7 million of dollars. Meanwhile, licensing revenue was $284,000, down 43%, while product revenue fell 21% to $6.6 million.

For 2021, Matterport recorded a loss of $0.23 per share, compared to a loss of $0.07 per share recorded last year. Revenue was $111.2 million, up 29.5% year-over-year.

CEO Comments

Matterport CEO RJ Pittman said, “Relentless innovation is the norm at Matterport, and with new products like Matterport Axis and Matterport for Android, we’re racing to bring precision 3D capture and digital twins to all in the built world. In the future, the physical world is going digital. Every industry on every continent is embracing digitalization, and I’m more confident than ever about the company’s prospects for 2022 and the decade ahead.

Advice

For the first quarter of 2022, the company anticipates an adjusted loss of $0.13 to $0.15 per share compared to the consensus loss estimate of $0.04 per share. Additionally, it forecast revenue between $25.5 million and $27.5 million, versus consensus estimates of $31.85 million.

For 2022, the adjusted loss is expected to be between $0.47 and $0.52 per share, compared to an analyst-expected loss of $0.23 per share. Matterport expects to post revenue in the range of $125 million and $135 million compared to the consensus estimate of $160.39 million.

The Taking of Wall Street

The consensus among analysts is a strong buy based on 4 unanimous buys. Matterport’s average price target of $27 implies upside potential of 240.91% from current levels. However, stocks have lost 26.4% over the past year.

Smart Score

Matterport scores 9 out of 10 in TipRanks’ Smart Score rating system, indicating the stock has strong potential to outperform market expectations.

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