What happened
The stock market was up slightly on Thursday morning, but spatial data company Matterport (MTTR -1.14%) was a notable exception. Shares were down by more than 8% at 10:30 a.m. EDT, after having fallen by as much as 12% earlier in the trading session.
So what
The short answer as to why Matterport dropped is that the third-quarter earnings report that it released after the close of trading Wednesday disappointed investors.
On the surface, its numbers looked great. The company's subscriber count more than doubled year over year to 439,000, and the number of spaces under management by the platform increased by 62%. Plus, since the SPAC merger that took it public technically closed in the third quarter, Matterport's balance sheet got about $600 million stronger.
Image source: Getty Images.
However, some of the key numbers came in just a little light. Analysts had expected about $29.1 million in revenue, and the company reported $27.7 million. And subscription revenue grew by 36% year over year, but this (arguably the company's most important metric) clearly wasn't enough to impress investors.
Now what
First off, it's important to keep this move in perspective. Even after Thursday morning's plunge, Matterport is still up by about 47% over the past three months.
Second, with a high-growth company like Matterport, it's important to take a slight revenue miss in a single quarter with a big grain of salt. That's especially true here since Matterport's SPAC deal just closed, and the third-quarter numbers don't yet reflect any impact from the $600 million war chest of growth capital the company now has access to.
