Why Did Matterport Stock Rise on Tuesday?

Matterport, Inc. (NASDAQ: MTTR) has reported a smaller-than-expected loss for the first quarter of 2022 on the back of growing demand for software-driven property management solutions. Following the results, shares of the company rose 5.6% in Tuesday’s extended trading session and a further 3.5% at the time of writing.

The spatial data company provides an AI-based platform that allows users to create a 3D digital representation of any built space.

Q1 Results

Matterport incurred an adjusted loss of $0.10 per share, narrower than the Street’s loss estimate of $0.14 per share. The company had reported a loss of $0.01 per share in the same quarter last year. 

Meanwhile, total revenues generated during the quarter grew 5.9% year-over-year and stood at $28.5 million, topping the consensus estimate of $27.5 million. Markedly, total subscribers jumped 70% to 562,000 from the prior-year quarter. 

Segment-wise, subscription revenue rose 24% year-over-year to $17.1 million, while services revenue grew 48% to $4 million. Meanwhile, license revenues stood at $23,000 and product revenue declined 10% to $7.4 million. 

Annualized recurring revenue came in at $68.6 million. Also, spaces under management grew to 7.3 million, up 49% year-over-year.

The CEO of Matterport, RJ Pittman, said, “Matterport is leading the industry with over 7 million digital twins, and we’re creating thousands more each day, while 99% of the world’s buildings have yet to be digitized. This enormous market opportunity is expanding, and we remain focused on efficiently scaling Matterport’s business to meet the rising global demand for software-driven property management.”

Guidance 

For the second quarter of 2022, the company anticipates an adjusted loss of $0.13-$0.15 per share against the consensus loss estimate of $0.12 per share. It foresees revenue between $28.5 million and $30.5 million, compared to consensus estimates of $31 million.  

For full-year 2022, the adjusted loss is anticipated in the range of $0.47 to $0.52 per share versus analysts’ loss expectations of $0.49 per share. Further, the company expects revenues between $125 million and $135 million against the consensus estimate of $129.2 million. 

Wall Street’s Take  

Overall, the stock has a Moderate Buy consensus rating based on five Buys and two Holds. Matterport’s average price target of $10.14 implies 138% upside potential from current levels. Shares have lost 78.3% so far this year.

Insiders’ Stance

Based on the recent corporate insider activity on TipRanks, sentiments seem to be Positive on Matterport. This means that over the past quarter there has been an increase in insiders buying shares of MTTR.

Takeaway

Matterport’s growth efforts and rising demand for its products reflect long-term growth potential in the stock. Also, the positive sentiments of insiders and bloggers keep us optimistic. Investors interested in the stock may want to take a closer look at MTTR’s fundamentals.

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