What happened
Shares of Matterport (MTTR 0.87%), a spatial-data company, dropped 23.8% in February, according to data from S&P Global Market Intelligence. The stock's decline is attributable to a continuation of the downward trend it's been in since November 2021 and the company's release of a fourth-quarter 2021 report that disappointed investors.
For context, the S&P 500 and Nasdaq Composite fell 3% and 3.4%, respectively, last month.
In 2022, shares of Matterport (which went public last July via a special purpose acquisition company, or SPAC) are down 65.1% through March 3. The S&P 500 and Nasdaq (including dividends for both indexes) are underwater by 8.2% and 13.4%, respectively, over this period.
So what
Last month, Matterport stock was down by more than 18% before the company reported its Q4 and full-year 2021 results on Wednesday, Feb. 16. The stock has steadily declined since hitting an all-time high in late November 2021. This decline is probably due in part to market dynamics (investors have been rotating out of interest-rate-sensitive growth stocks ahead of expectations of rising rates in 2022), and also due in part to what was an overdone run-up in the months that followed the stock's debut on the Nasdaq.
Then, on Feb. 17, shares dropped more than 17% following Matterport's release of its Q4 report on the prior afternoon. Q4 revenue rose 15% year over year to $27.1 million, which beat the Wall Street consensus estimate of $25.1 million. Subscription revenue grew 32%.
The quarter's adjusted loss widened 900% to $0.10 per share. The loss was driven by the ramping up of operations and additional costs stemming from the global supply-chain issues. That result came close to meeting the $0.09 loss per share that analysts had expected.
It seems safe to assume that investors were most disappointed with guidance, which we'll explore in a moment.
Image source: Getty Images.
Now what
For both the first-quarter and full-year 2022, management's guidance came in considerably lower on the top and bottom lines than Wall Street had been projecting. That said, the issue isn't demand -- which remains robust -- but supply. Management said the guidance assumes that supply chain constraints will last throughout the year.
For Q1, the company expects revenue of $25.5 million to $27.5 million and an adjusted loss of $0.15 per share to $0.13 per share. Year-over-year changes this outlook represents aren't included because Matterport wasn't publicly traded in the year-ago period.
For the full year, the company guided for revenue of $125 million to $135 million, representing annual growth of 12% to 21%. It also projects an adjusted loss of $0.52 per share to $0.47 per share, representing a widening of 126% to 104% from 2021.
While shares have been beaten down, Matterport is worth watching. Reiterating my ending in the earnings article, "Demand remains strong for the company's products and services, which have the potential to be tools other companies and entities use to build out their metaverses."
