What happened
Matterport (MTTR 0.85%), which offers a platform and hardware designed to create 3D maps of interior spaces, was having an awful day on Thursday. While the stock market was generally negative, Matterport was a major underperformer, with shares down by 16% at 10:45 a.m. ET, and the stock hitting a fresh all-time low.
So what
At first glance, Matterport's quarter looks quite solid. The company's subscriber base nearly doubled over the past year, and subscription revenue was 47% higher in 2021 than it was in 2020.
Image source: Getty Images.
The problem wasn't necessarily with the company's earnings, but with its forward guidance. Matterport is projecting subscription revenue of about $81 million for 2022, which would be an increase of about 33% year over year. Plus, Matterport is expecting an adjusted loss of about $0.50 per share, which translates to about $125 million for the year. And this is an adjusted loss -- under generally accepted accounting principles (GAAP), the loss is likely to be worse.
Now what
Simply put, Matterport went public as a special purpose acquisition company (SPAC) initial public offering in 2021 and between the initial SPAC merger and subsequent warrant redemption, the company received about $700 million in cash. Investors were obviously expecting a stronger growth rate going forward, which is why we're seeing the stock sell off today.
On the other hand, if Matterport can surprise the market in 2022 with better-than-expected growth, the current share price could end up being a bargain.
