MTTR - Earnings call 4 2023 | Matterport, Inc.

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Operator

Good afternoon, and welcome to the Matterport Fiscal 2023 Fourth Quarter Results Conference Call. [Operator Instructions]. Please note this event is being recorded.

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

Michael Knapp

Matterport's Call. and to Financial Year welcome Conference Results and Fourth Full Quarter XXXX Thanks, market today, the December After closed XX, quarter for XXXX. ended the Matterport released results the The available company's website release on at is investors.matterport.com. and recorded can our webcast on website. being is found call webcast and to be section a Relations Investor live the the link of This

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

risks filings uncertainties in and found the with SEC. be our can information Additional the regarding

forward-looking law. as are Matterport as no the obligation this them, of update made required assumes date except call, or revise and to by statements All of

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

Hosting Officer. today's call Fay, are RJ Pittman, Chairman and JD Chief Chief Executive Financial Officer; and

it to to RJ over turn begin. to like I'd that, with And

Raymond Pittman

customers us million demonstrates costs the strong a of period. to to enterprise million, growth, platform's reaching operational for today. $XX.X serve. was and growing industries the range in of for our for Thanks, Mike. revenue solutions fourth continued quarter revenue XX% around pleased above and Good our Total customers the XXXX productivity medium-sized reducing small we and by record Subscription end and adoption afternoon, accelerated high results. the the I'm everyone, credibility powered boosting globe. guidance joining that for business and from quarter This we you year-over-year report thank $XX.X closed throughout our with was

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Before governance report. social our Fay, environmental, JD I'd latest spotlight to to handing over and like

during XXXX. sites, or carbon facilitating and technology tourists. aiding data, sustainability to Matterport XXXX emissions and business core home to Matterport sustainable According a strategy, like since in over as customers travel, tons everyday has this The helped ESG virtual reflects our XXX,XXX underscores framework tracking construction operations their decisions. interaction objectives, alternative our our efficiency of environments within report prevent to manufacturing in achieving our of to Embedded initiating the influencing technology commitment plants

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enabling from conduct the a remotely and pivotal role their more customers Our in sustainably, world. operations to efficiently anywhere in platform plays

our outlook I it financial would and our to to for for fourth quarter JD now discuss year the to QX full turn XXXX. over like Fay and performance

James Fay

Thank you, RJ.

consecutive to guidance fourth revenue rose and quarter represents million, $XX.X line the as to increase quarter, XX% and above million, For total we up revenue is percentage the of total high accelerating of larger X our for it revenue, delivered total subscription XX% $XX.X the second of design revenue. make with guidance in ago. range. Subscription from XX% our of end by now This growth year just range. a revenue Subscription revenue growth we

rapidly Our annual we reach that and we recurring approaching ARR million, revenue the this milestone $XXX are was $XX.X year. expect million to

from existing to strength growth over implemented in broad-based from customers share increases SMB was XX% than saw of subscribers, year-ago the more XX% We price expansion period. subscribers middle over subscription the The have we and in we now and plans in came that of enterprise new in with both growth $XX,XXX are pleased ARR, and and greater than XXXX. XXX up

the Asia and and Europe, Middle Pacific also a year-on-year XX% saw in growth We East and the Americas growth over Africa. regions XX% in

XX% Our subscribers XX% ago grew grew year total to the XX% the subscribers period. and base compared free by ago Paid year by from subscriber period. to grew

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on cash from to expect as continue operations our operating We we in improving this leverage positive year. flow later close

quarter. Strong which net average for the expenses, expansion revenue combined XX% account share, and subscription was operating improving loss dollar non-GAAP increased revenue, in higher with per per improvement lower $X.XX gross yielded rates, a margin

share average weighted shares. Our million count was XXX

with the investments, $XXX than down Moving million ended debt from in the prior sheet. on remain to free. We X% the less and balance We quarter. quarter cash

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year net in Turning of improving to light another operating a to margin deliver revenue, trends growth of management, and in guidance in revenue our company annual position QX is in and recurring the an improvement our gross disciplined close expense strong year, to To goal flow on this controlling higher our rate. of end growth we profitability. the by while drive reach as we of profitability loss ensure continuing revenue we subscription cash in spending are

subscription small enterprise profitability businesses business. and growth adoption for the and expectations and new predictability existing and Our revenue our continued further in enhances customers medium-sized from across of

For $XX be the range. year-on-year to to subscription $XX XX% midpoint range first revenue total the the million. to quarter subscription the revenue revenue represents of million of million in be $XX range million XXXX, at we and to $XX.X in expect the growth of This of

period expect loss the would path be lines. between $X.XX, in and profitability revenue range our first be share year. and revenue we roughly targets non-GAAP services the to continue of to XX% which the represent We improvement product reach $X.XX balance of We this split the from to shows to a the per anticipate quarter that year evenly ago down

at Full the revenue $XXX total to million midpoint. the For $XXX million in of to million. full in to $XXX expected revenue the to growth we represent $XXX be year This million. of subscription year over expect range is XXXX be range guidance, XX% would XXXX

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would For the an $X.XX improvement. XXXX, compared the $X.XX full at loss to per non-GAAP improvement $X.XX year of or This midpoint XXXX a share. of XX% expect we be to

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Further, and rate when account with And XXXX. the to positive average expansion path operating solidify are this deliver our for also foundation later while can We inherent year. our in operations expense operating one positioned revenue to combined achieve a expect per and earnings improved for sustainable is continue strong important even management, for is to Matterport, significant dollar net flows and from cash this ahead. years the growing just disciplined software an milestone unlocking cash platform to flow the stronger on step that we it leverage our

I Now RJ. back to would over like call the to turn

Raymond Pittman

XXXX is outcomes Matterport to improved across operational Thanks, make By more and in sellers large become cornerstone savings, more in exceeding from more medium-sized to JD. a Matterport the businesses enhancing ranging a of as our operations board. enables small market has the productivity the a year and Matterport intelligence, property success for timely efficient This pivotal turn why decisions. marked cost customer-focused buyers agile, we which our primary than This reason prefer and processes, to clientele realignment is crucial we simplify strategic efficiency of streamlined organization. into led workflows, integrating transformation informed our our to expectations and ever. everyday in enterprises customers' prioritizing and

our our adoption in clients solutions, substantial expansion value, dollar which business are rising reporting net reflected Our of is rates. newest

expect year-to-date. I will promising our most XXXX Looking be ahead,

AI-driven that Twin have introduced intelligence, Just workflow. property our automation Digital weeks we the year, streamline enhancing significantly insights into customers' our and with

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interest becoming estate. real recoveries is inflation momentum more in fluctuating to market factors external rates, and impervious and market more Our like

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

Operator

The Instructions] [Operator Yun first Kim with Loop question comes Markets. Capital from

Yun Suk Kim

RJ introduced JD. Congrats Are RJ, on accounts then maybe you are were newly about the accounts? quarter, enterprise you talk pricing who And least around the the you go-to-market if at targeting who your what's that? targeting? model large initially behind you -- also, intelligence, a existing and property solid can if

Raymond Pittman

it ago. And our even. just on And Property journey. out We're been thanks, with customers about days Intelligence bringing the excited we've Right. rolls along as literally really us

handful part making now for been essential of collecting and maximum has of we a in the that they've value. sure So months their feedback been program beta deliver

X-pronged. a this doubt, Without a for indeed, our so all it's the strategy, go-to-market customers. in update we're existing of tremendous And is

about all Digital year today. delivering starting it put value that insights Twin as come these their that into And And built workflows. simply, of talked they've that standard, providing that and we're now last automated it's all we to the of embrace taking

gate. activity that with Matterport reprocessed energy extract for of the all out properties the with of us of driving put huge right value. that is Intelligence version and latest Property the behind getting And being So their all of is running to

listing this property new in capability, especially is want for absolutely especially time of not is money the by but foot essence, providing where our forward enterprises, information brokerages everything a fingertips. and in and market. The constrained second at marketing, Digital property property where the the realtors from all is in XD best measurements absolutely your your a Property click away one agents, you markets, when property are prong of with Intelligence, of Twin layout, and data go-to-market today's property delivering literally promoting just their And and from

So whole just is creating perspective, From we're listing Matterport all has of from lot the a whole and use a our power cases. today. that out gotten stands and differentiated pricing in pricing a not easier pack, because this using now a platform lot the of changing more of customer we're the powerful

increased our from customers this also to the and demand. the have of on that do yet features customers are What All know is is are all these are of platform we of benefiting that great value. interest that we high in

Matterport for And so coming customers day. to and driver we driver a growth be expect adoption this new every absolutely to

Yun Suk Kim

Okay. Great.

business, kind there, on mix And enterprise the forward adoption with think by that just we existing? you're continued Looking curious is how the should how success customer trending? app versus new driven of of to having the about that much

Raymond Pittman

Sure.

the and relationship, going or year, together one to well. sure that has make led more at here talked the the the where of to what us. our of pay mentioned Matterport, all that's aspects they strictly the daily to workflows a all last in permanently continued digging future lot we've off. best road needed hallmark from it's other we're our versions Property something years. focused customers embed of year was And the of their map helping are Intelligence with in of plus them as that we've our of but aligned examples really which been that as Matterport but many in of building the our top on customers for that is numbers, that, centering than working success, enterprise NDR to on on into launching we we that One calls about across year, on earnings things customer call seen

Fortune 'XX. of expansion, And dollar of growth dollar net room we appeal X, as there the all we one. are number ARPA and upside Enterprise so and Number Essentials. of more that to we're building is our our increasingly right on us call a part are table XXXX These to focus plenty stakes the and net what beyond. for the across the retention, in large-scale delivering going really that on for huge however, more There's to mentioned, get, driving all that enterprises,

And as customers JD are XX,XXX now demonstrated, We fantastic. year the talked and as a Matterport the in into that stepping platform, to love and above is growth, XX% customers. double-digit to they product strong the customers those both ARR new enterprise, and over that existing driving really from where new seeing going Matterport up by buoyed aligning that about, market today meeting fit are growth

Yun Suk Kim

is that so that? Or how rate. up. Is second the the go half in perhaps really we higher? and lower about begin And Obviously, a obviously, you sounds move quarter, one NRR little a of Obviously, a should are of guys in should of strong driving the that highlight products, inch maybe should largely number think to the seeing expect by driven we highlights expansion newer new the ramp more to bit that continue see maybe stability maybe higher have forward? churn? going uptick products And here the JD, But of to or lot some should also year? Or you the then great. That metric in that we deals? what's

James Fay

couple growth, in to enterprise and strength last a XXX, terms of And The customer enterprise and the now lot through the past rolling as over we adding well. as Yun. the expansion. highlight is the a NDR there's in as the cohort of in noted, of we've couple to about we've years over significant full year talked ads, Yes. they're Thanks, begin of nice quarters, NDR And of for with us. had

So that's going quite well.

Our is average account revenue per going also. up

So it's grow the enterprise shows existing nicely customer base that side. continues to that on point the another quite data

with base RJ medium average the much same course, Matterport smaller [indiscernible] adopt over of and of as for to small all to in the increasingly but reasons The discussed continue side. time they well. true bigger It's a expand revenue, just

that dollar that here. well launched we our the as the the have year. with developments think later so that And We grow expansion recently can expectations from in new strength, as even products more rate net for

And we quarters. build done want couple last and success it keep moving we so just on just of as the the forward over to have

Yun Suk Kim

Great. Okay. solid quarter. congrats again, a And on

Operator

from Stanley. The next question with comes Elizabeth Morgan Porter

Christopher Quintero

on Quintero for Chris is Elizabeth. This

the in guidance. you JD, I think for AI-powered talked for your adoption features you, fiscal including maybe about some year of expectations 'XX

I and wondering bit you're you what rates helpful. exactly if color types there in maybe was adoption of just terms be of Any expand for? a So what could there assuming looking would you're more

James Fay

Well, in first, RJ that as Property is of last winter out part as well, Intelligence week, came our that is release all subscriptions noted included the as suite Yes. today. the

with you'll the It's on in look see building first Digital is if pretty property to these saw with And websites to features their the step So the marketing in customer today. were Twins we success at already customers live of new engaging across base and our features. all you beta the exciting. now fact, from program existing these ours,

customer base are adoption is step by now this these features of existing in. because built So the all

that Now as of to this some as release. do well be are greater of add-on part of then look expect we'll -- features that we that matures, will there adoption the

a is acquisition, this through expect features floor the permits I then the that elements new of of too. AI-driven and think, great plans, around intelligence property the example. example, And new we'd customer as finally, accelerate to awareness services, Some market, for of

forecast kind fiscal And guidance. 'XX for -- of so the go expectations are of all those elements our or into for

Christopher Quintero

Got it.

wanted You then And from performance to making ask partner Is longer? strategy. enterprise. cycles your also sales helpful. know this super that's strong around Now, I the

you're kind So it maybe from seems from these around these like the the and partnerships, benefiting impacts be some would of better timing today maybe partnerships but helpful. of clarity

Raymond Pittman

it's question. Good accretive. Sure. And really

are our Autodesk sales of Services, we're enterprise addition these cultivate. way, taken the in some what But Web big partnerships couple to building doing with with more time on a mid-market So by to our accounts, the indeed the momentum like of of have but and existing and accounts and last Amazon basically Procore, it all using ones specifically efforts direct as of base we tapping of each the of is themselves solution with Matterport. sidecar capacity integrated in customers installed of stage to their for sales a is go-to-market partners force. engaging in of that where a co-selling an network and now the and This think

pipeline that of Then pipeline of And a and that's going growth scale, building parallel those we're that in groundwork opportunities to for operations 'XX. tremendous really across as laying in running us all give 'XX. now in to some last all the process partners of the very positive our year, and

going to bearing I'm see way that us So a we're expecting year. this that fruit in nice for

Operator

The with next from Shah Deutsche Bhavin Bank. question comes

Bhavin Shah

the what's question your customers the remarks efficiencies working the various of develop you verticals? in of in Can of mentioned the see intelligence kind and of kind to adopt been with prepared kind with Like you a talk might seeing you some about lot RJ, they property answers as as property tools. that are to and differ guys of how that able you intelligence. you've the just ROI they're work across customers

Raymond Pittman

and Bob. so management traditional And of It's metrics, built productivity and the of of Because that so down of around simple. manual labor. built into much and time end comes Sure. the almost is key money. at that this Thanks, kind the much day, X world to simplify facilities to

bit inspect detailed human a fair in is precision. a to to fair So a take of space measurements, capital to building, assessment bit of build of a risk a and

turn it on of that kinds commitments all conduct and the We're Digital these equation a the hours, workforce of cumbersome time on-premise on-site, what days, would twin. Matterport the providing several take be plus et inspections. cost normally get And out and to taking travel, output could at of time the several cetera, to You that could and that be challenge. of

Twin. all set scan you providing the your insights, and space, we're measurements including So you, Digital to automated those able of minute you're an open automating for of up the

is site translates manual exact to of alone than the in way the a on in matter those less of Digital orders out far, to fashion. a less sending cost same far, of investment a team go tasks far that cost conduct person, for and return single because magnitude physical the much And is on Twin single

headed where with we're So that's example of this. one very just simple

that precision customers quarter, to it all you the And week the a along level on those this so as of of space return density and Matterport. to way, multiple and turns multiple to the only way, want the multiplies assessing of multiple to to by that times we out, that same the that then even increasing listen our investment, apply want even be use all of time-consuming and do, they they times tasks, able and to be what inspecting or automating more automation month a inspections a times

And partners open continue specific that of by with coming very of deliver to alluded to you'll those more we that year across so the the tasks And them. from on automations have call, hear roll very big And in our can the out we ROI bit automatable on next continue our many we're as the -- and working -- get midyear quite in developing year. keen for the for more us in a the customers. coming and late to

Bhavin Shah

Super helpful as JD it there. one to guess then just the model. follow-up for financial relates And I

product of fiscal side imply kind kind revenue about that for we in to you we of the commentary promotions that that running do about made of And XQ. the on As fiscal longer 'XX? what as on for of of side house? terms does willingness think 'XX kind kind of promotions your product think that for of run it relates to more How in revenue and house the on

James Fay

these paid our too. ARPA, invest why investment. basis. customers that That's product in know the the approach make unit on I because line who always platform. for drive we mean, be shipments new pro-level we looking want high And new active, and I to revenue subscriptions to were they They optimal strong think helps it customers highly subscribers, use a cameras sales to with and in Yes. both tend

a Friday, holiday. think that significant case Black around I the so And special a Cyber Monday built of opportunity pretty was more

don't do advantage flexible them. to do that want take we of So to opportunity, able and where we But these pockets see we often. very be of

flows in to bit year ever, for shipment last Going was fact. in of our great Day back order the strongest another a of Prime middle last year, days cameras our pro example, further one and

And long the of so engage software in where I and the our about advantage going it's flexible subscription which being those just to platform. pockets with game, to the revenue think grow is demand market customers taking is on of and play

Bhavin Shah

subscription quickly one back Helpful. your just for The guide. revenue last to maybe

do talked about 'XX You rates Property kind as through how How when half of to timing are that going of the something you improving solutions new about expansion subscriber help new Intelligence see the go Is second growth. we driving and think we to better other and more kick already subscriber gear? terms Or impact year? solutions this the should the starting of into are really drive of growth? in in

James Fay

and growth we both through it seeing of the growth middle the year. continue subscriber now the And have We're so well greatest of in as we the calendar our expansion to Yes. talked quarters, expect seen over that XXXX. tend last as today. of average We quarters sequential revenue to we've about couple

the I'd subscription higher I quarters. that expect of ARPA, XX% with over throughout continue overall 'XX. the calendar think But expansion north higher of continue. dollar growth higher rates, net will that Again, revenue last would couple So

Bhavin Shah

year. That makes sense. Congrats on strong end of the

Operator

& Brent with Company. Piper The Bracelin from next Sandler question comes

Hannah Rudoff

Brent This today. is Hannah for Rudoff on

then getting business all partnerships profitability? Can you'll lot this talk of for these to how along different the For has verticals it going RJ, new different from year? about investments your you you talk you'll about And JD, can where focus balance efforts for you, with encouraging to ahead sounds it of to of AI a after. growth you're products, drivers like the

Raymond Pittman

Hannah. Thanks, Fantastic.

industry-leading space in principal nightly property real and solution and all-in-one is travel residential propositions best-in-class put sure value the promote we're for particular wood all of the and broader commercial like, directing them. focus partnerships being and key for office the that really talked focus arrows, all being those rentals, Number even facilities both in of making whether X all functionality behind for areas: our property marketers, critical estate, era, that we first. one, the into our energy and super hospitality the really real and features about First, to marketing, it's X estate, us

looks the opportunity. category in it's The be year facilities XXXX. another all in reflects second a to design category outpacing and for and of -- epitome strong fastest-growing category year, sector enterprise construction and And the that management the the is of management. That that really is been is us has growth last

behind facilities for is is And we directing distinct those very, respective are that's and that management markets arrow sure so product also wood best-in-class all opportunity in a available enormous, us critical making construction the of solution that apart from is the set we very in today. and the really anything have because

in to So X we that bring capitalize and capability to have advantage that are those the all towards areas on, of distinct 'XX. this we're going

James Fay

software model part in these financial investments your of platform. products question, these Hannah, RJ the just are primarily described side, that on the And that new and to

a and So it's we're revenue course, has continuing gross margins. on of that to invest as model solution in business that service strong recurring Software And a basis.

side. every subscription well for over last the margins actually repeats we've year grown month, it every the on us quarter. So And our gross as

So that's performing for well quite us.

revenue create in subscription growth with in profit gross growth part this helps that margins line as top profitability. equation of strong So really gross strong to

the investments on you of in side, back may as themselves, we half last then worked operations recall, those efficiency improving year. spending of our the the And on

our spending to OpEx. describing have on efficient, by make We can progress as them levels, that continue you that more reduced we're the And today. made see results we'll

to of by help that to the end of mile us the mile last that will so those through combination this profitability year. get And last

Operator

next The Research. Wolfe question Arsenije from [Operator Matovic comes with Instructions]

Arsenije Matovic

Arsenije there pricing we Is uplift versus of way think terms existing the in and XX% Josh. about subscribers to new be is expansion on a subscribers through rolling subscription guidance? for existing from contribution will parse the increase contribution the lands? out growth revenue should pricing This How the with subscription what from

Raymond Pittman

the expansion Arsenije. thanks, from year The the is in did yes, about So increase existing dollar the base last net rate. contribution price half subscriber we of

of XXXX, today's and new current of in for and other comes the And the customers, organic the growing they're base course, as through comes increase the think pricing. accounts. And then call existing how coming then, from half it, from, all price those the expansion about so seeing all they're that's I half

from a the coming population price, revenue subscription is about the added subscribers growth from during growth so half subscriber gain the about half the organic, And base new half of year. on and then total existing is coming that on of that and point then of in view, of half

Arsenije Matovic

it will to drive the a add-on the think XXXX initiative. uplift more while on coming to an impact nonpaying will paid being That's pricing plan. completion it. then the helpful. today, once entire new larger subscribers you that as is initiative from paid in users? understanding change force your of it follow-up to it With and off that intelligence release of Do that convert driving a or subscriptions? aren't property completed, existing of a quick through have existing pricing Or won't for subscribers Genesis driving Got winter And that set

Raymond Pittman

a to And Yes. things going one it's combination this of be for sure. in

digitized have question lot been of an space reason AI And and no decade. as features this apart. for and data X, lot on have coming the and working XX an we've billion we than extraordinary of about more coming. the world digital a high-impact, a have high-powered boy, roll that to sets AI with platform is is, feet one, us we for a And functional portfolio there's we physical spatial a information we square First, continue library

to not is pricing how a hikes do that, said having trove of we and tiers things of very some well because price in customers. subscription. nature arbitrary we create manage And careful is about a come drive believe this that about. going in we're really really doubt. premiums as spoke is without on of our going and drive it as to offer And add-on as premiums This to treasure you subscriptions will It's opportunity to add-ons, high-value

again, paying ROI We're the journey prices And them. paying. delivering sure far think for value making that are exceeds we're that along we're making that our on that our the bringing adjustments the is high we're we and if customers any about price customers carefully very really

creating absolutely the delivering going back exponential. in is of half And keep we 'XX to the because in and the clear pretty going value that and that balance here think so be 'XX we into headroom be but we're to in going upside we're year

a of upside So there lot on price-oriented for growth. revenue

Arsenije Matovic

Got can sneak brief, it. in. just very I if one And more

in at in with inventory, than isn't a ProX Looking been down is inventory the left portion quarter-over-quarter, should there just lower has much that and assume we being it ProX past? bigger

Raymond Pittman

last suggested, inventories the is, COX had ProX of the those the throughout over continue true this by are we declining business half balance. had more will buildup are back pump of It's that that newer as sales we're And because volume design, the camera. year. just is that the to finding year. And production you over line some Also and last in ProX we as were and that for the starting year, inventories taking for new we initial we're building or shifting that a

those transition elements anymore for don't exist So 'XX.

Operator

Knapp question-and-answer any to I like concludes the turn session. remarks. to conference our over This closing for Mike would back

Michael Knapp

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

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

Operator

Thank now attending has today's conference concluded. The you for presentation.

You may now disconnect.

Matterport (MTTR) 20 Feb 242023 Q4 Earnings call transcript