Earnings call transcript Q4 2022

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Operator

Good day and welcome to the Matterport Fiscal Fourth Quarter 2022 Results Conference Call. [Operator Instructions]. Please note today’s event is being recorded.

I would now like to turn the conference over to Mike Knapp, Vice President of Investor Relations. Please go ahead, sir.

Mike Knapp

Matterport’s and to results XXXX welcome call. conference and fourth full-year quarter financial Thanks closed released today, third market the After Matterport year September quarter results ended XX, XXXX. and the for at available the is release The Company’s website investors.matterport.com. on This call is webcast recorded live. being and can the Relations the link website. on of found recording a the be And Matterport to Investor section

statements financial begin, we forward-looking to including, expectations within that management’s the meaning the differ These actual like and not on plans and statements securities business. numerous but that laws future to you discussed Before remind would forward-looking for regarding limited to, of results I contains today’s to Matterport’s subject federal today’s risks statements call. materially results may are from those and uncertainties cause call

the our update and them, found day forward-looking risks required SEC. Any of be can assumes by filings to law. or Matterport are and the no regarding made of in statements uncertainties obligation this revise Additional as the as with information except call

In Company’s to otherwise website. indicated. the comparable this addition, measures. each non-GAAP unless a should GAAP considered be as is substitute non-GAAP measures measure supplement found measures on directly for of available call on today’s as a be earnings of a financial financial in financial will and These the basis not be most Reconciliation references to GAAP these on can deck, which

and J.D. R.J. turn Financial call today’s like to Pittman, Chief Chief Executive R.J. Fay, are Hosting Matterport; And of begin. Chairman to I with Officer Officer. over it would that, and

Raymond Pittman

am revenue record pleased a up have the that and year-ago, thank $XX.X fourth from you quarter, Mike. of joining delivered with million everyone, today. of we for Thanks share million a subscription Good I for us $XX.X hitting to XX% record revenue afternoon,

guidance demonstrate on $X.XX continued increase, loss of This our enabled execute at the operating figures the and us of end to success high-end with to share achieve can range. net our we focus post guidance plan combined top the world. of top range, the line on we as a of our digitize our Both these exceeded built effectiveness per

addition, the management fourth quarter In from spaces, while a in subscriber surpassing spaces year-ago XX% total milestone the XXX,XXX to for XXX,XXX quarter, up another of over up X.X same under crossed our subs over increased XX% period. million the base

XXXX For record the of million. full-year we revenue $XXX delivered total

was during more robust demand than real calendar U.S. enterprise and subdued As offset year, the estate market. a

more productivity We towards travel see insurance customers driving costs. and the hospitality current retail, and economic and reduce improve management, to solutions environment AEC, facilities across our

Matterport as the in the sets worldwide. and viewed Twin seeing Digital estate year. for to insights our second XXXX about breaking critical XXXX real carrying of I half being through are platform by tool to the is customers momentum stage another we maximize believe we and Increasingly, record an the efficiency essential unlock saw

Matterport At is a efficiency key focus us. for

is strive their organizations their our other our it not challenges. facing economic the but support the many current efforts We for customers run we most pressing to As improve company, to in tackle way to business also challenges. only

industries, Digital of just discover of starting potential the range Twin and a from many our come customers Our are platform. to

overcome to our why platform, adoption which will new and is service customer them gain amongst our cross and propel insights our we enhancing to in issues That forward. product We base. fiscal customers utilize reinforcing the that our functional year, in businesses commitment are aim existing the their coming enabling expand to ways

provide Digital speed the and Pro professionals of to Here properties Studios real we simple are to solution VHT more and year, two recently examples. sell Through all-in-one with introduced a efficiency. acquisition estate market last with

Matterport and customers AWS than with Matterport operations photorealistic businesses and data simpler dimensionally Digital IoT Twins and are like properties time help into save estate to more Twinmaker money terms, effectively ever. companies that their firms enterprise with both real helping integrating manage by their is accurate. partner also In We seamlessly

property we intelligence the speed year, the any tailored property insights of will a and public, the any in portfolio available efficiency, Later to that cutting to producing or meet with make can business. needs edge analyze AI

with We have later. I customers already such upon begun as collaborating some touch will which Airbnb,

XD for camera fidelity. Setting capture and introduced it like accuracy, progress technology which outlook to benchmarks Next new for discuss edge world. J.D. detail. I results We would for and XXXX. our I built ProX to September, in made LIDAR the during fourth will Fay more great versatility, Then quarter discuss the the Equipped revolutionized the we financial has speed, in cutting to hand with over

advanced with equipped ProX’s in compact exceptional and received The well to performance and impressive product a from customers, were increase portable features ProX offers The software. a our design. cutting onboard the XX% edge LIDAR by leading previous technology quarter. in revenue

capture aspect our reconstruction AI just to from The by any one allows universal capture create powered device. of is generates such of solution because choose Twins precision is Cortex, because process. our ProX results speed This Twins and incredible is our that efficiency. Digital almost strategy, XD thousands XD Digital of Matterport, day our powered in which us ability no unique with software the Companies with humans automatically deliver every to

data. turns Matterport buildings And because into of

than Our more photography. comprise Digital Twins so much

from it space new customers to making We about any available have our the in and unlock the size, a of information world. our instantly anywhere to building shape data

meet solution with insight in using value announced is One for instance release of homes was verify November. Airbnb our requirements. in that intelligence standards winter a property selection confirm XXXX it of analyze mobility highlighted and Airbnb our guests Airbnb to added they accessibility to

free is Matterport property technology. bathrooms to features. to or more step category, collection showcasing powered one have adaptive called listings made as bedrooms platform new property the the are access possible other that as Airbnb’s and and insights through accessibility home AI listings on intelligence of well The These

chairs, and more. objects, light measuring This technology pathways, size identifying on valuable insights doorframe Digital converts fixtures, such including proprietary or automatically tasks Performing much whips, large-scale. as into Twins a room

improve in access efficiency them from to operational Twin This properties allowing by companies insights world. technology their help manage the and essential from their their Digital will anywhere

reinvent were solution attend to clients data dimensionally XXXX hosted AWS we jointly AWS Digital immersive integrate Amazon the to thrilled our quarter, into to by enterprise visually allows with effortlessly Matterport accurate the During integration Twins. Twinmaker. IoT new This unveil conference

The predictive operations, virtual new enables analysis, performance. solution remote effective integration supports, improving the digital virtual cost equipment convenient transformation enterprise production efforts provides equipment root of a building design and and time, cause training. The for real monitoring, maintenance, and optimizing and customers method enhancing

into increasing efficiency organization. gain and in catch There didn’t on. And is an take across operations, particularly customers, smart long sectors Digital deeper to their enterprise it while the insights opportunity manufacturing immense leverage the building Twins for to to

capture XD enable high to month, Operation build and facilities to Remote operations fidelity Europe that and last we Twins assets virtual Management Digital North and progress. over XX of a announced Digital Just Center India. Deere Twin platform selected project for Matterport America, John facilities teams materials Matterport’s John technology and track across Deere’s remotely

reducing real and time Matterport factory for site enable costly real Digital remote need in across time truth improve Twin vehicles, for productivity occur accelerate a global zones Collaboration and changes, single integrate Plan streams data collaboration. while within the IoT or site can monitor of the times, working for all time, to visits. cycle source effective

Matterport. to expansion our our in customers our enterprise digital significant technology. the potential transformation the XXXX customers. are came revenue our nearly And companies of the enterprise continuing half a we and using residential The fourth of in beginning. outside are quarter, estate, were built from of Fortune nearly subscription real quickly just of industries see And the And world realizing with quarter is

integration successful a VHT marketing services, to to we more customer leadership on the our with properties are industry focused extending of Moving online. integrated approach with

to property we enhances solution call Pro. listings to comprehensive digital Our Matterport ability includes new it promote potential, their our offering a Digital marketing that full

marketing social for high customers photos, produced innovative all-in-one rate. one solution Everything last Pro to Introduced offering two for grade, Digital tour, the to a is business a affordable plan, one most flat a one Twin is XD the from market Digital and perfect available, floor in preview sharing definition within XD professional All and video delivered on media. appointment week, one days. that is entirely for property

the Pro approach their has been promoting easier use to we to and Digital out and for never encouraging Digital has to initial more comprehensive. presentation Pro estate designed been want at and real is and more forward agents tech stand started. Marketing response marketing. getting a who extremely just listing The are

it important aspects, space hand over which to Company’s more J.D., I values our before every to bring and showcases Now valuable every making our many to dedication and would ESG like accessible. inaugural attention building among to report, I

goal, a equitable but are And built of it more making matter our world and not the is just is model. a virtually creating accessible the the digitization and at We business of world accessible core everyone. it to driving for

more environment our employees. making and break to a always capture growth to create our XD opportunities, anyone our all and talent, workplace widely to with We have in diverse barriers. and for technology equitable a strived reach we available people in reflected This is where career believe provide attract purpose culture, down smartphone of welcoming inclusive

In footprint. Moreover, in a emissions over is inspiring. into play XXX equivalent cars for release of of of reducing is XXXX, truly the to our driven COX helped our to the Digital straight. role carbon which solution approximately atmosphere, Twins have the This tons prevent a year potential crucial the the XX,XXX

our important the help that Twins hold business fight and platform From goals. their testament is power has the facilitating quantifiable the this. and promoting fast our continued for is sustainability need becoming report, our a to clear combating change, in an reducing With against tremendous emissions Digital role efforts, potential businesses the By achieve carbon operations climate play remote platform seminal to and it in sustainability. travel,

all money way. and time saving the While along

now over full-year the to the J.D. quarter and financial I for fourth the turn outlook to for discuss would our performance like XXXX. QX to in it

James Fay

R.J. Thanks,

XXXX $XX.X record pleased the Matterport with to million, from and revenue We of $XX $XX up are to fourth total range deliver of XX% our of million. million quarter quarter guidance another above for

in across subscription and million revenue $XX.X $XX XX% million guidance of new $XX.X rose the product categories, million. the which in from our product of strength to revenue quarter. to above quarter, was year-ago top subscription our Subscription The period, services and in end hitting revenue up the with was and records the

the had end In revenue quarter, addition, the Of to grew our free of fourth subscribers million. paid XX,XXX we subscribers. XXX,XXX at a subscribers XXX,XXX our annual and $XX.X record record recurring

service cautious customers to increase change about I XXX% XXX% the quarter. their This And dollar us. primarily net prior was on the calls, prior sequential The in due noted to with small to spend from was our remaining expansion rate As in continue have was down subscribers spending. their Matterport QX.

continued to to U.S. continued, residential travel by the real in insurance, fourth real in same facilities industry As estate customers quarter, and construction trends of strong in and the hospitality. outside estate, residential driven we with see customers the industry for and macroeconomic At particularly the uncertainty weakening continue example, management, in expansion time, quarter. enterprise retail our face customers

of past several continued markets growth estate revenue enterprise from to over customers grow Notably, the existing and subscription outside of vertical real from new has quarters.

now we up real result, subscription a revenue year-ago non a approximately in period. from XX% As from of derive estate one-third roughly our

revenue a year-ago was XX% a doubled growth the million million, primarily our services new driven demand customer was product $XX.X Our in fourth was the up period all fourth $X.X Services camera. in of offerings. increase than driven more ProX sequentially. our revenue by by primarily for year-over-year, robust This and for XXX% quarter quarter

estate digital include capture technicians offerings. at offerings our real contracted the physical Matterport spaces specific other listings customers Our content globally industry scale which for captures services, certified in and marketing residential inept rapidly with service U.S. and

to gross margin. Moving on

of camera XX%, lower was non-GAAP Our due margin which of was XX% value materials. The inventory related in write primarily and down quarter. a sequentially total the ProX from a margin sequentially of portion the for fourth was gross down prior quarter to the gross our

the believe We to cameras. for for value demand than camera it demand appropriate better impacted reduce the has of inventory. ProX Accordingly, that the ProX the was expected we the ProX determined have

would would have expense this $X was margin performance. XX% quarter, which non-GAAP the have recent in our been historical million been expense, consistent with excluding fourth This gross

gross Our subscription XX% in XX% improving quarter. margin the was from prior

we We our better beginning as see Digital Twins support quarters globally. benefits our that increase to scale we efficiency functions and of discussed are have and leverage hosting processing in prior

in XX% negative quarter year-ago XX% compared was negative in the margin fourth gross quarter. the Product to as

fourth associated Excluding inventory, XX% would been camera in product positive quarter, margin in the the gross by sequentially sales. our ProX the with ProX strength expense have from up XX% driven

commitment or This company. were million QX research by supporting XX%. primarily while to in reduction throughout million reflects from operate million, sequentially was QX expenses Regarding and $X.X $XX.X expenses. to operating development campaign due expenses, The QX down R&D down spend were expenses more million, our marketing still decrease by SG&A lower X%. sequentially $X.X are lower innovation from the lower for $XX.X efficiently,

the of our shares. loss was million loss. $XX.X net for $X.XX Accordingly, loss end share guidance the of million $X.XX quarter, and per Weighted non-GAAP a Average top was XXX to $X.XX. share was fourth non-GAAP count At range

to on by carefully while to scrutinizing focus to the front expenses in opportunity operating profitability We continue us. profitability sizable our achieve realizing path the market of necessary

to savings million to for yield prior line. our people QX implemented in headcount And example, sequentially, we expenses the third $X.X For cost or benefits lower X%. total XXX we initiatives declined by The continued bottom our the operating held compared in flat quarter to by quarter. quarter at the

balance with free. our that sheet, investments we than our remain cash We in to more million achieve and strong. remains business the which we We believe plan. fully $XXX funded ended to debt quarter on and are Moving

XXXX, total revenue year up a delivered XX% highs. all full-year at prior was For of hit time subscription revenue we services million. product each the and record $XXX.X from This

non-GAAP loss our and $X.XX. gross per was Full-year share was XX% non-GAAP margin

ARR a of while growth QX our progression margin trends continued improving year losses evidence gross our subscription position deliver the are places in company to and and record path Our declining down profitability. to the this strong

are quarter XXXX. the financial full-year introducing and Today, for we guidance first

line grow year loss We and company expect share. record the the per to another as deliver our improve for top we

headwinds XXXX, mainly more in customers we becoming with continue by will macro That spend faced characterized their expect smaller the we our in said cautious XXXX.

this we not supply improved, chain experienced enter issues year. but completely have the addition, In XXXX in as are resolved we

while right our achieve we guidance customers we We organization’s relative full-year the objectives factors, our help years. money. drive solutions we time can widened have because our their to these saving to sales feel Given range have and prior confident,

believe In and go we chain we positioned supply macro addition, outperform we uncertainties, if well from the as XXXX. we see to relief are through

range For revenue to the of $XX quarter, total expect the we first in be million million. to $XX

We be the million expect revenue million. range to to of subscription $XX.X in $XX.X

lines. split balance revenue the to and We evenly product services between expect of the revenue roughly be

be We in first of anticipate non-GAAP loss quarter to to range per the share $X.XX. $X.XX

We range to full-year million be XXXX to the $XXX XXXX total in subscription expect revenue range million. $XXX expected million with revenue full-year the in $XX.X of to be million to of $XX.X

the XXXX, loss expect execute For we our from organization. across per drive as built $X.XX we path non-GAAP a and share, our efficiency to the full-year to to plan a would $X.XX represent on XXXX. which of to improvement significant We digitize remain our profitability world committed

We per guidance company our of over the of that full-year full-year beginning are the in year, proud made resulted better the $X.XX we public $X.XX, first loss XXXX. provided improvements the non-GAAP that course the as share a the of a of midpoint than we

XXXX by up EPS As XX% our full-year we from we last growth efficient to to continue loss to we expect enter and level. can year’s XXXX, drive believe improve

the like to call to turn back over I R.J. Now, would

Raymond Pittman

Thanks J.D..

XXXX built in Digital platform. around results for our growing Twin our solutions QX demonstrate record demand Our the innovative

companies platform and to to in across have Our is environment that must savings, tool an operating deliver measurable critical efficient. productivity efficiencies, a markets becoming gains is cost more become requiring in companies help

on top by on launching under than next and on phase of Twins services first added billion feet our Digital are value Twin, we Importantly, AI the Matterport nine on platform. of square space by trained our powered our embarked XX million which mission have management of Digital more the and

global XXXX. XXXX, has from Matterport $XXX Digital $X Twins. more by subscriber billion the largest related revenue Digital a to to for base in from generated and technology services billion world’s expects than tremendously Gartner Twin soar

the platform, created will Cortex decade powered the continue Twin a as innovation Cutting With into ago. next a AI in to Our generate four capacity significantly Edge has than by leading can of that billion Well we world expansion, we for the market the scale we rapid the buildings Digital category automatically ahead. reach. and more decade to many

you for Operator, today. are for we Thank joining questions. ready now us

Operator

Thank you.

first [Operator session. Elizabeth question-and-answer Today’s the begin Instructions] comes now question Morgan Porter from with will Stanley. We

Elizabeth Porter

a recovery start about we of when kind in first flow-through the revenue the revenue having of guidance. and now related fiscal sales the Great, on enterprise for to then seeing that think very that in to dig better just camera subscription upside thank of some what of past the in had drive it looks attach subscription limits revenue XXXX kind kind much. and weighed some starting like XXXX. just the on you in I to want as remember to can the well? weakness subscription I revenue And motion camera are sales in subscription

James Fay

Thanks questions. Elizabeth the for

are right. You

camera Our high actually and high average as - sales subscribers generate subscribers subscription well. generally paying revenue

course, noted, so camera through was we into of strong quarter that that QX then are flow And sales. And for a you pleased, as subscription revenue. will

way, course, - our get also as about not is platform. talked the That devices so to using well other smartphone. offering, only for do capture onto of as services the can service They the capture including through some as we have subscribers of

So all and are of the platform these subscription ways into subscription revenue. ultimately into inroads

subscription is see we terms to So relief of camera will think revenue in happen. growth that supply in the steady are chain sales, flow starting generating through That I and volume in line. in that the

pricing new pricing, some growth have targeted of that with close the started Essentials vertical this call, we offering it a And Now or value-based and the is drivers last large remember may new of in the now. which and right already we customers, major offering point released pricing feature you business is, subscription our set. markets more Enterprise service at is the the are contracts package, QX and for various to

that we this anticipate some year through well. will as I of see start So flow to

coming things these I think, acceleration we for as I’m together, optimistic therefore, as we get we of start are see will to of XXXX year. half back of of go sort year. kind some through the all the the So And that towards

Elizabeth Porter

NRR. off a Got then the if expansion. And it you it. seeing understand churn you the most just less about on you that components and great. SMBs And the churn for recent you. about expansion, think into XXXX, to or wanted trend follow-up, touch impacting I as between help be Are would NRR Thank just down-selling is platform how quarter could us the the just

James Fay

Yes, sure.

So in experience. steady have historical rates the medium our churn business the remained cohort, with largely small and

really and essentially that there changing nothing leaves So expansion. so the

so about smaller cautious and being higher And we up trade of ahead have seeing the some those they more are to perhaps customers plans, filling looking instead trading the up business of they their planned capacity even at up. before activity

that of expansion net the rate seeing muted kind so are with the is or we the of NDR. bulk trends of dollar And kind

is then become of flowing on. to the and cohort, And to see subscription versus balanced more conversely, we medium also to business, healthy through the in that is revenue, as very quarters now nearly XX% the and trends which continue enterprise enterprise go continuing mix small

year. differences kind have the going we that to year been unless that continue we now, this and six-months the of through enterprises environment. changes too. continue quarter in that macro saw of of last the what And continue to continue last we year, course experiencing expect see them are for I over is macro most the as this So of environment right rest between seeing them is those enter the that businesses and something small And we the largely we and first through

Elizabeth Porter

Thank you.

Operator

Sandler. Raceland today And from next go our question Piper you. Brent Thank Please with ahead. comes

Unidentified Analyst

Brent. is jumping for on [Mauro] (Ph) This

really I So the first question is budget prioritization. have around

terms the Matterport shaking maybe year, taken customers And follow-up. into prioritization have the budgets in criticality going customers is then thinking your platform? one XXXX budget are a look your closer of I into mission out at the how where and Matterport about As going of have

Raymond Pittman

on conversation and are about, that markets really for right, for take talking the will center I that we company the in. is question. it And recent And focus at Sure. of thanks enterprise. certainly the the depends and a jump

quite their by to frankly, at the their enterprise, XXXX saw the create even in business for and over take We ever. OpEx more really efficiencies off. is looking maybe really course quarter looking everybody of in by And that ways than month, development in

straightforward. and so of been is customers is prospective what to And enterprise do we proposition understand help our customers to Matterport, have value the quick which pretty

groups a and Twin walk-throughs or facility, a cost create You need unit travel that of we properties analysis, the the chain, reduced retail of like. dramatically access to building to your physically space and of the and into their people do that of time manufacturing your those and Digital inspections, business collection goes

boost are I that have of center And This huge a huge looking their organization, dependencies part right those costs in has of run that footprint but as their their cut been enterprise down a the examples of that out customers and improvement to gave on for core the fairway. physical business. still

to success the felt there is great residential reevaluating were rates as positioned on a saw In a we as estate, economy category what so that, organizations, with to initially. productivity like make, other interest the companies these saver getting question where And in no that has investments getting is, it now going for them real pressure. the just are cost markets, platform we are driver they and

less for real been if the Digital a activities the and buyer, on home you whether much price. sell the last on homeowner, it, selling renting value property market alongside your it Twin stay proposition the given or marketing time put a the agent, the estate the seller For homes you for or for property, for has a are XX-years, staying home the rent market, higher

and proving been year out year last in We decade. that statistically over the have

to property. are having out giving looking buyers. even people speeds that information open real enough without foot And there transaction, creates form, still in decision an virtual buyer And set for by so into in sitting more up that there confidence Matterport the to while be bringing might the house are a soft, them houses market make estate purchase

even that we these for And estate, markets of opportunity business to grow across still real into all as see continue value different proposition like challenged push our verticals. us an we to

Unidentified Analyst

disclosed Got And I overall is helpful is second it, that saw thank that you question color. you the rate. retention just then a net around -

I we was of track or customers you can about for quarter. net range XX% think think number for the even real or that a for outside residential estate? a enterprise customers Is retention it around there that NRR

James Fay

Yes.

So while rate, year is business net additional numbers dollar that there we last over of is separation a expansion don’t enterprise about we several disclose about retention NDRs. dollar around or bit a between separation have And the talked what the ago. customer quarters that in started respective the small and the their

And - that the prior steadily than it fairly for was is steady of difference. small ago. these business are at year is been about And began really there to it a that, customers continued much and sort It a rate wasn’t customer expanding But higher a four last fairly enterprise days. quarters. did the

Unidentified Analyst

Thank you.

Operator

ahead. go question from comes Capital Kim And Loop Markets. Please with our Yun next today

Yun Kim

count growth and that that does under existing And is to do are focus, also, vertical even base mentioned year. you the services, customers, on as space Just customer user see should the plan remarks, kind metrics, such more J.D., mean there that you additional more then your in you that assuming that with targeting growth bit, elaborate on to of alluding focus a enterprise business management? your maybe on that expect package or I’m if slower bundle is are you you prepared plan what introducing in Can more this existing you to? we products certain and on focus

James Fay

Thank you.

are customers We on the exclusion new of focusing enterprise customers. to not the

unclear an cohorts. those in on of remarks. apologies we their prepared that So equal have focus if I was think, types And got,

the that of finding money estate, more their ESG vertical save meet we enterprises to is discussing I’m and ways as looking residential operationally of efficient real particularly businesses well as outside goals. are for What some their in the markets are are, much make

And quarter. is particularly - to with launched that by those build the And reception part been the that third is services, new this able customers of the latter been in of something has enterprise on essentials traction that great. some we the have we

to and that ramped effectively. addition, going investment campaigns through was resources. are marketing That most for essentially and we big those and last in groups we so on And down sales of double our have aligned us year. And a

the and QX results, online, they rates. productive impressive come And are have attainment by they hitting

we are those down working. of essentially to going so And that double all elements are on

R.J. will the But Property see those accessibility year. later that, of is adapted new this and time, out come offerings, at categories for Airbnb mentioned Intelligence and you services and the rentals. first same namely their which short-term helping

to So come well. there is more as

it a think and existing pack both but weight be equal I on going So customers. is to year, new

Yun Kim

several it smartphones. - do since app been And we free the free talked on return. Okay. been apps and time has those capture the we quarters since it has Clearly, a these iPhone about while on some Android, investments generate take to

then Aston pretty monetization and a gives ProX the of enterprise selling well also you the ramp is with opportunity. are the it maybe now good So time that

update us can long-term. If your downloads, you these both give on three and around in the some near-term strategy

Raymond Pittman

the question. And for Sure. thanks

smartphone space what using has home, a in of evaluate offering, to factory your an freemium the any the a Firstly, ability the Matterport offer. way to just is office, floor powerful even pocket a kind, scan to a

our year over of a of or we the ago, in tail estate real get of cameras connecting technology but this a that hold for Digital mid-market hands without so now with evaluate estate Twin specialty using was a took started. as or companies enterprise and one to homeowner real as not And agent, and residential actually product discussed way had the really just our long putting a to every the

get low-touch, pipeline our that for base. Fortune be a fills day. mid-market the and And that low-cost was it And into to including is opportunities XXXX an an customers and pipeline enterprise customers, into valuable our customer and very unlock unlock continues way every to

So that is number one.

lean that to continue come into potentially into enterprise. turn only do further grab those smartphone expect we even of them accounts Not new two an capture reasons. the and opportunity to And an near-term to for for that by way

a without us tier to all the converting scale. or it of rates the we of that And or that one business is have intervention starter the sales subscription paying because are say. trial as a organically at is and marketing conversion for business customers but tier customers free helps really paid where pro human efficient a We these not a from like evaluators tier, build just or part to highest account, us whether a

power introduction we that in and pressures Twin from that estate. in are growth not covering with on smartphone of of ends. both technology and advancements we that finally, the lies the today, there Pro continued Digital are done real Despite unlocking residential is market globally ahead the Digital category And in enormous the with capture, the and Matterport

And vast today. the estate make represents up properties residential that majority of real world still the the built

is it for market huge large And us. for represents upside to going that the us. long-term be So a in opportunity always

the of property in the course, So first and ProX minimizing ProX and suitable of strengthen new a from we and continue adoption Digital to point their Twin worldwide. going our has are friction the for the flagship to every pocket to ensure and SMBs creating offering into smartphone your that enterprises to entry convenient

Yun Kim

Okay, for thanks. R.J., update the great. Thanks

Operator

Please with And our next go question today Deutsche comes from Bhavin ahead. Bank. Shah

Bhavin Shah

I factors your of to What versus you or get outlook? product that can is versus range supply noted Hey might you service assumptions end range. more the the bit wide is that chain subcu of low thanks end. question. of a FY elaborate it it maybe for mean the other revenue? impact How the one gravity J.D., some either on much on you a high my little pretty just taking the are XXXX

James Fay

thanks. Yes,

is steady So earlier the seen the had first breaking line, over kind the a have year last that rates into to it the we terms of guidance of subscription two-years, of continuing it down, kind this the fairly year we in conversation this it is in call, too. growth for on bit

is So that fairly steady.

I think, more think customer an those business we then and the there of growth in, bit increase, rates to is to increase strength in see the for if cohort course, confidence. gains subscription enterprise small opportunity those I a

it bit I back stronger. think will a come

new the as full-year R.J. digital services bit revenue acquired that we a Pro we talked contribution as see from traction believe, some business, our line the In from offering Studios will earlier. item, VHT well about a new

in also course, estate from activity point are seasonal the residential space. the we capturing of a real of in low starting, terms And

assumptions So the essentially in growth that line services. the for is

with constraints, go that about, we expect some chain finally, roughly as then so, line moderate total well. rest have of item had outperformance but And in in of year. is because products, there is then opportunity for talked flat to we And doing supply this as those the we year-over-year as course, an we, through

the are And going-in so those of assumptions. kind

demonstrates recent the continued of the I we a And seen as that quarters, of guidance And fairly growth think macro so reasonable. have kind the kind it in most also. like result, trends is consistent

see with through And and of then continued we if Pro come finally, the we medium go new the outperformance year. Digital service those from growth along can to kind enterprise some the return and such customers, small the from of again offerings, growth as business as

Bhavin Shah

there. helpful detail Super

in where this terms other Just guys just you maybe OpEx on guys the are on side. are does talk lender how focused focused with terms the efficiencies that you year a opportunity? XXXX? little to investing Can of in driving in And of into maybe that areas maybe long-term compared the bit about you expense

Raymond Pittman

Sure. really doing productivity. things on take will it, is And you the level, question. focusing of we maybe just the of take that J.D., At one highest of the top that part bottom I the are

little talked a As earlier. about J.D. bit

mid-market and year large-scale year in platform. was into are and organizations to meet bringing enterprise XXXX customers capacity And of the respects as build in and to the coming sales the strength. up we we full we were fleeting on Fortune the demand marketing with are a XXXX many the our growing

organization So revenue able up the go. have drive we attached to cost up with right, because with force have, to it being the full more anticipate we working to less the more much we ready and doing momentum fleeted

R&D, going deployments the are we across as launches accelerating continue and are And towards road to and well. accelerating product product ultimately that which geared is revenue prioritizing development specifically in growth map, adoption,

efficiency now as as and in effort our around major maximize the market share. and sales map and around getting alignment road well to ambitions entire maximize driving to lockstep all in marketing are the So our adoption markets team that

up to efficiency, and that, even see we that line with be So we pushing do are to greater as top we like that. going

side accelerating. well growing J.D. can while the to are and about talk costs as to cost of doing we the on take are organization what we continue out

James Fay

on we roughly well. be expenses Yes, that right. expect is And to year-over-year basis, as would a operating flat

count should flat. Our roughly be head

XXX people We are bit last year at a today, having our reduced headcount already.

platform. We ProX the large in enterprise are was We camera the finished Essentials just scrutinizing the creation a one, of all of and which our investments. new very launch program

so off has our but dedicated large rolled can other And to program turn attention programs, that now. we

driving efficiencies We and are spend. marketing

and are very systems. in there initiatives that our analyzing carefully looking And finally, spend. we for of We optimal back are improving ROI and office our then marketing campaign other all

we lower scalability investments throughput making effort. income the very can targeted create business through with the more are essentially to drive that We and through automation so and statement some manual

a this out profitability. of drive going the So efficiency variety on whole to there programs of is company

Operator

conference Thank closing Knapp to today’s concludes like you. turn over session. this gentlemen, back for the Mike Ladies and question-and-answer any remarks. I’d to

Mike Knapp

thanks, today. everyone, joining for Great. us Well,

interest and look goodbye. your with earnings appreciate speaking and next we to you always, in As our on Matterport, we Thanks, call. forward

Operator

Thank you. We This thank today’s presentation. conference today’s concludes for all you attending call.

disconnect and You lines, a have now your day. wonderful may

Matterport (MTTR) 22 Feb 232022 Q4 Earnings call transcript